Value Chain and Technology-Based Complexity Analysis of China’s Manufacturing Exports

Abstract

In recent years, China’s manufacturing industry has developed rapidly, but numerous studies have shown that China is not a manufacturing powerhouse. In recent years, the division of labor in global value chains has been booming, and the Chinese manufacturing industry has been actively integrated into it with its labor cost advantage and achieved rapid development. There is an urgent need to transform and upgrade to high value-added links in the value chain. This paper measures the upstream degree of China’s manufacturing industry through the world input-output table and uses it as an indicator to measure the global value chain status, focusing on the heterogeneous impact of different types of productive services on the upgrading of China’s manufacturing industry’s global value chain status. This study examines the impact of global value chain boundary lessness and institutional quality on the technological complexity of China’s equipment manufacturing exports, using panel data of six types of Chinese equipment manufacturing industries from 2007 to 2018 as a sample. The findings show that intermediate manufactured goods from intermediate imports and intermediate products from developing economies make the strongest contribution to imported intermediate manufactured goods from developing economies. By industry, the impact areas of Graph Visualization (GV) embedding and institutional quality are different. GV embedding has a stronger contribution to the manufacturing of communication, computer, and other electronic equipment, while institutional quality has a stronger contribution to the manufacturing of special office machinery, and the interaction between the two is the same as that of institutional quality.

The effect of investment in the brand value chain on profitability and market value of the firm: lesson of success taken from Amazon

“…The study results are in line with the study of Qi [14], Although the costs of research and development may lead to a reduction in current profits, they also positively affect the future profits of the company when new products are developed as a result of the research become profitable by themselves. Also, the results of this study support the results from Bayer, Srinivasan, Riedl and Skiera [15], Anselmsson and Bondesson [5], Cheng et al [7], and Mehar [1] that there is a relationship between customer mindset metrics and actual market performance. This support the results from Zhang [6] and Yue and Guo [4] that the brand of the firm is not only a marketing-related concept.…”

“…Loyalty to the brand and linking it in the minds of customers leads to achieving marketing goals at the lowest possible cost [7,13,19]. Therefore, it can be said that reducing investments in the brand value chain can lead to cash savings and cost reductions in the short term.…”

“…Successful brands are the primary sources of present and future value for a company and are often its most valuable assets. Therefore, managers recently have focused on influencing the customer's mindset (brand awareness, purchase intent, and customer satisfaction) through the impact of marketing activities on customers [4,6,7]. Hence the interest in the brand value chain emerged and its important impact on the performance firm.…”

An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects

“…The improvement of GVC positions can help B&R countries improve their productivity, so as to obtain more benefits from GVCs (Jangam & Rath, 2021). For China, while the GVC positions of B&R countries have improved, it has also driven China to import a large number of intermediate products from B&R countries for industrial development (X. Zhang, 2022).…”

“…For China, while the GVC positions of B&R countries have improved, it has also driven China to import a large number of intermediate products from B&R countries for industrial development (X. Zhang, 2022). Therefore, in view of the urgent need for B&R countries to enhance their GVC positions and of the rapid growth in Chinese OFDI in B&R countries, it is necessary for us to investigate the impact of Chinese OFDI on GVC positions of B&R countries.…”