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Escaping the GVC trap: How does global value chain (GVC) participation impact the integration of the industrial and innovation chains?

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  • Song, Huasheng
  • Ding, Dianer
  • Zhou, Jianjun

Abstract

This study examines the impact firms’ global value chain (GVC) participation on their dual-chain (industrial and innovation) integration using a sample of Chinese listed companies. The findings indicate that GVC participation has a negative effect firms’ dual-chain integration. Heterogeneity analysis shows that the inhibitory effect is stronger for firms in the eastern region and high-technology industries, state-owned firms, and large firms. Furthermore, we identify three potential effects: competition, capture, and dependence. This study offers new perspectives on how firms can escape the lock-in trap within the GVC.

Suggested Citation

  • Song, Huasheng & Ding, Dianer & Zhou, Jianjun, 2025. "Escaping the GVC trap: How does global value chain (GVC) participation impact the integration of the industrial and innovation chains?," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s154461232500409x
    DOI: 10.1016/j.frl.2025.107146
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