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Improving financial productivity and upgrading in global value chains

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  • Zhang, Qun
  • Qiu, Bin
  • Sun, Shaoqin

Abstract

This study integrates the financial productivity improvement in a multi–country, multi–sector Ricardian model to examine its impact on China's position within global value chains (GVC). We also differentiate between the trade elasticities of the financial sector concerning intermediate inputs and final consumption. Through counterfactual analysis, our research reveals a consistent upward trajectory in China's GVC positioning at aggregate and sectoral levels that is attributable to financial productivity improvement. This ascent is facilitated by input–output links and cost-saving effects. The findings validate the significance of financial productivity improvement in advancing China's GVC positioning.

Suggested Citation

  • Zhang, Qun & Qiu, Bin & Sun, Shaoqin, 2024. "Improving financial productivity and upgrading in global value chains," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s154461232400792x
    DOI: 10.1016/j.frl.2024.105762
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial productivity improvement; Global value chains; Input–output links; Cost–saving effects; Structural model;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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