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Position in global value chains, trade duration, and firm survival: Empirical evidence from China

Qizhong Yang & Tomohiko Inui

Journal of the Japanese and International Economies2025https://doi.org/10.1016/j.jjie.2025.101353article
AJG 2ABDC A
Weight
0.48

Abstract

• Firms with higher upstreamness can more easily continue their current trade activities. • A more upstream position in the GVC is beneficial for a firm's survival in domestic market. • Both GVC participation and positioning significantly influence firm performance. The fragmentation of production in global value chains (GVCs) has become an important trend in international trade, where trading firms are facing a competitive global market. We use matched firm-level manufacturing survey and customs data to examine how the position of Chinese firms in the GVC affects the probability of trade duration and firm survival in the market. The results show that firms with higher upstreamness can more easily continue their current trade activities compared to firms located in less upstream positions. The subsequent estimation of the effect of the firm's GVC position on the probability of firm survival implies that a more upstream position in the GVC is beneficial for a firm's survival in both domestic and international markets. These findings show that participation in GVCs is not the only important determinant of firm performance, but positioning in GVCs also matters.

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https://doi.org/https://doi.org/10.1016/j.jjie.2025.101353

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@article{qizhong2025,
  title        = {{Position in global value chains, trade duration, and firm survival: Empirical evidence from China}},
  author       = {Qizhong Yang & Tomohiko Inui},
  journal      = {Journal of the Japanese and International Economies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.jjie.2025.101353},
}

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Evidence weight

0.48

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.41 × 0.4 = 0.16
M · momentum0.63 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.