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Effect of the logistics industry on the promotion of China's position in the global value chain: An international trade perspective

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  • Zhao, Yang
  • Wang, Song
  • Liu, Xiaowan
  • Tang, Xue

Abstract

In an increasingly complex international environment and deepening economic globalisation, the logistics industry, as the basis of international trade circulation, has a far-reaching effect on promoting a country's position in the global value chain. Based on the perspective of international trade, this study presents a two-way fixed effects model using the 1995–2018 panel data of 59 economies. The empirical results show that the development of the logistics industry can significantly promote the status of a country's global value chain. National economic development level, human capital, technological innovation and application level, and logistics infrastructure level are the main channels through which this promotion effect takes place. Therefore, China should accelerate the construction of export logistics infrastructure and cross-border intelligent logistics systems, and enhance the customs clearance and logistics hub capacity of its ports. ‘Reinforcing’, ‘strengthening’, and ‘extending’ the chain as a means to optimise chain integration force will allow smooth circulation at home and abroad, high-quality development of the logistics industry, and greater opportunities. Ultimately, this will promote the status of the global value chain in the high-quality development stage of the national economy.

Suggested Citation

  • Zhao, Yang & Wang, Song & Liu, Xiaowan & Tang, Xue, 2023. "Effect of the logistics industry on the promotion of China's position in the global value chain: An international trade perspective," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 834-847.
    • Handle: RePEc:eee:reveco:v:86:y:2023:i:c:p:834-847
    DOI: 10.1016/j.iref.2023.03.029
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    References listed on IDEAS

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    1. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
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    Cited by:

    1. Qi, Fengyu & Guo, Dong & Xu, Yaping & Liu, Xiaoxue & Liu, Pengzhen & Xie, Youzhi, 2024. "How does circulation industry agglomeration help close the income gap between urban and rural areas? — Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    2. Badassa W. Chala, 2024. "Effects of economic freedom and ease of doing business on trade in global value chains: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 36(1), pages 70-83, March.

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