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Cross-border personnel mobility and bilateral value chain linkages: Evidence from visa liberalization in China

Author

Listed:
  • Ma, Shuqin
  • Ren, Fuyao
  • Feng, Fan
  • Feng, Kuo

Abstract

The cross-border personnel mobility has emerged as a crucial feature and trend in the process of globalization. This paper examines the impact of unilateral visa-free-entry policies in China on bilateral value chain linkages using a DID model. The research reveals that the implementation of visa-free-entry policies significantly promotes bilateral value chain linkages, with this effect lasting for approximately four years. Mechanism tests suggest that visa-free-entry policies facilitate the acquisition of soft information and strengthen the linkage between domestic and foreign value chains through three pathways: promoting information dissemination, enhancing the trust environment, and extending production steps. Heterogeneous analysis demonstrates that the positive impact of cross-border personnel mobility is more pronounced in low asset-specific industries, manufacturing, and the service sector. It has a greater effect on forward value chain linkages and high-value chain linkage industries. This paper provides valuable insights for the rational simplification of cross-border personnel mobility restrictions and procedures.

Suggested Citation

  • Ma, Shuqin & Ren, Fuyao & Feng, Fan & Feng, Kuo, 2024. "Cross-border personnel mobility and bilateral value chain linkages: Evidence from visa liberalization in China," Journal of Asian Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824001398
    DOI: 10.1016/j.asieco.2024.101844
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    More about this item

    Keywords

    Bilateral value chain linkages; Cross-border personnel mobility; Visa liberalization; Soft information;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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