Does participation in global value chains extend export duration?

Abstract

This paper investigates the relationship between participation in global value chains (GVCs) and export duration based on a model of discrete-time proportional hazards. The econometric analysis relies on the merged data of Chinese Annual Survey of Industrial Firms (CASIF) database and Chinese Customs Trade Statistics (CCTS) database over the period from 2000 to 2013. Empirical results suggest that participation in GVCs could positively extend export duration and is robust to various specifications, including the samples with multiple spells, measurement error, and the alternative measure of participation in GVCs. Further studies based on heterogeneous variables demonstrate that the improvement of product quality, asset-specific investment, and product diversity for enterprises participating in GVCs could positively extend export duration. This paper contributes to our understanding of how participation in GVCs affects export duration based on firm heterogeneity. Our results may have important implications for enterprises wishing to avoid export risks.

Export margins and survival: A firm‐level analysis using Kenyan data

“…This result is robust because the tariff variable is statistically significant in the probit and logit models. Our finding that high tariffs decrease export survival is consistent with findings by Cui and Liu (2018) and Zhu et al (2019) for China and Fugazza and Mclaren (2014) for Peru. Kenya's membership in EIAs improves export survival by 4.3%, corroborating the findings of Chacha and Edwards (2017) and Majune et al (2020), who found that membership in COMESA and African Growth and Opportunity Act increased export duration.…”

“…Several firm, product and country‐level factors have been identified as determinants of export survival. However, tariffs have only been covered by Cui and Liu (2018) and Zhu et al (2019) (for China) and Fugazza and Mclaren (2014) (for Peru). Nonetheless, all of these studies observe an increased likelihood of firms exiting the export market when tariffs are high.…”

Durability of Zambia’s Agricultural Exports

“…Second, studies increasingly apply firm-level data due to the budding availability of microlevel data such as the customs transaction data. Some examples of firm-level duration studies are Békés and Muraközy [37], Fu and Wu [38], Lejour [39], Zhu, Liu, and Wei [40], Anwar et al [41], and Kostevc and Kejžar [42]. Nevertheless, we focus on macrolevel studies since our study applies country-level data.…”

Explaining Export Duration in Kenya

“…Methodologically, earlier studies on duration applied continuous time models rather than discrete‐time models. Starting with Hess and Person (), discrete‐time models have been a norm in recent export duration studies (see Görg et al , ; Besedeš, ; Görg and Spaliara, ; Fu and Wu, ; Fugazza and McLaren, ; Córcoles et al , ; Gullstrand and Persson, ; Inui et al , ; Chacha and Edwards, ; Cui and Liu, ; Lemessa et al , ; Peterson et al , ; Türkcan and Saygili, ; Goya and Zahler, ; Zhu et al , ). Using the original data by Besedeš and Prusa (), Hess and Person () conclude that discrete‐time models are more efficient than continuous‐time models due to three reasons.…”