China’s global value chain linkage and logistics performances in emerging ASEAN economies

Taguchi, Hiroyuki and Zhao, Jun (2022): China’s global value chain linkage and logistics performances in emerging ASEAN economies.

Abstract

This paper aims to evaluate the extent of China’s forward linkage of global value chains (GVCs) with emerging market economies of the Association of Southeast Asian Nations (ASEAN) compared to those with the US and Japan, and also to examine the nexus of China’s forward GVC linkage with logistics performances in emerging ASEAN economies as China’s trade partners. This study uses the UNCTAD-Eora Database and applies a structural gravity trade model for the empirical analysis. The statistical observations identified the major position of China’s GVC, which has transformed from a backward linkage to a forward linkage since the mid-2000s. The empirical estimation verified there is less linkage in China’s forward GVC with emerging ASEAN economies than with the US and Japan, and demonstrated that the lack of logistics performances in emerging ASEAN economies has been a significant factor in explaining the less linkage in China’s forward GVC with them.

• Item Type: MPRA Paper
• Language: English
• Keywords: Global Value Chains; Forward Linkage; Logistics Performances; China; Emerging ASEAN Economies
• Subjects: F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East

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