Influence of local institutional profile on global value chain participation: An emerging market perspective
ISSN: 1750-614X
Article publication date: 14 February 2020
Issue publication date: 18 June 2020
Abstract
Purpose
The emergence and rapid expansion of global value chains (GVCs) have profoundly changed and reshaped the global trade regime. Although many determinants of GVC participation of enterprises have been discussed extensively in extant literature, the important influence of local institutional profile on GVC participation is often neglected. The purpose of this paper is to investigate the influence of local institutional profile on GVC participation.
Design/methodology/approach
Taking the World Bank Enterprise Survey as the empirical sample, it is used an econometric method (propensity score matching technique) to test the relationship between local institutional profile and GVC participation.
Findings
Local institutional quality is positively related to GVC participation. Moreover, GVC participants display better innovation performance than non-participants. Innovation benefit from GVC participation is contingent upon the abilities of the participants, namely, absorptive capacity and research and development collaboration experience. GVC participants who only either export or import is compared with those who export and import; the findings show that the latter benefits more than the former.
Originality/value
This study offers researchers and practitioners a detailed view of local institutional profile and GVC participation.
Keywords
Citation
Hong, J., Zhou, C. and Wang, R. (2020), "Influence of local institutional profile on global value chain participation: An emerging market perspective", Chinese Management Studies, Vol. 14 No. 3, pp. 715-735. https://doi.org/10.1108/CMS-09-2019-0319
Publisher
:Emerald Publishing Limited
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