IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v55y2023i13p1422-1435.html
   My bibliography  Save this article

Global value chains, trade liberalization, and productivity: a stochastic frontier analysis of Chinese manufacturing firms

Author

Listed:
  • Haoliang Zhu

Abstract

This article estimates the total factor productivity (TFP) growth of Chinese manufacturing firms and quantifies how international sourcing and trade liberalization affect TFP growth. To this end, we estimate stochastic frontier production that decomposes TFP growth into technical changes, returns to scale, and technical efficiency changes. Furthermore, we consider two channels through which external factors affect TFP growth: technical change and technical efficiency change components. We measure international sourcing and trade liberalization by foreign value-added shares and input tariffs, respectively. Several novel findings emerge. First, international sourcing and import tariff reduction positively impact TFP growth by improving technical changes and technical efficiency. Second, international sourcing has a negative effect on the technical changes of processing importers, while it has positive effects on the technical change and technical efficiency change of ordinary importers. Third, input tariff reduction has a substantial and positive impact on the technical efficiency change of processing importers and the technical change of ordinary importers.

Suggested Citation

  • Haoliang Zhu, 2023. "Global value chains, trade liberalization, and productivity: a stochastic frontier analysis of Chinese manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 55(13), pages 1422-1435, March.
    • Handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1422-1435
    DOI: 10.1080/00036846.2022.2097190
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2022.2097190
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2022.2097190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:55:y:2023:i:13:p:1422-1435. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.