Upstreamness, exports and international competitiveness: lessons from the case of China

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Abstract

Abstract

This article aims to provide more and better evidence regarding the degree and nature of the interaction of countries within global value chains (GVCs), based on metrics compatible with the international fragmentation of production. The main focus is on the Chinese specialization pattern in vertically integrated production networks. Our results suggest that China’s production has advanced to other stages located more at the beginning/bottom of the GVC, while increasing its importance in cross-country production sharing and becoming less dependent of intermediate imports embodied in its exports. The decline in re-exported intermediate imports in China was not translated into lesser diversification of its exports. On the contrary, China has climbed the ladder of production complexity, while becoming more integrated into world trade and relying less and less on imported inputs, as well as becoming more competitive in the production of components.

Keywords: global value chains, international competitiveness, vertical specialization patterns, China. 

JEL Codes: L00, L23, F14.

Author Biographies

Carolina Troncoso Baltar, Instituto de Economia, Universidade Estadual de Campinas, Campinas, SP, Brasil.

Professora-adjunta do Instituto de Economia da Unicamp.

Fernando Sarti, Instituto de Economia, Universidade Estadual de Campinas, Campinas, SP, Brasil.

Professor do Instituto de Economia da Unicamp.

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Published

2023-07-25

How to Cite

MARCATO, M. B.; BALTAR, C. T.; SARTI, F. Upstreamness, exports and international competitiveness: lessons from the case of China. Nova Economia, [S. l.], v. 33, n. 1, p. 37–64, 2023. Disponível em: https://revistas.face.ufmg.br/index.php/novaeconomia/article/view/7252. Acesso em: 21 dec. 2024.

Issue

Vol. 33 No. 1 (2023): Revista Nova Economia

Section

Regular Issue

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Copyright (c) 2023 Marilia Bassetti Marcato, Carolina Troncoso Baltar, Fernando Sarti

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