IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v77y2025ipas0275531925001333.html
   My bibliography  Save this article

Domestic value chain, digital finance and the quality of firm's export products

Author

Listed:
  • Xiaoli, Ma
  • Benye, Shi
  • Hongliang, Lu
  • Raza, Ali

Abstract

Chinese firms have strategically positioned themselves within the global value chain by leveraging low-cost labor to achieve substantial growth in exports and economic development. This study presents a theoretical model that offers valuable insights into how embedding in domestic value chains influences the quality of firms' export products. Based on this framework, the paper empirically examines the impact of domestic value chain embedding on export product quality at the micro-firm level. The findings indicate that domestic value chain embedding has a significant positive effect on export product quality. Further analysis reveals that this impact operates through mechanisms through increased efficiency in fixed asset investment and productivity. Heterogeneity tests show that the effects of domestic value chain embedding are more pronounced in eastern regions, labor-intensive industries, firms with fewer financial constraints, and firms with lower initial product quality. Moreover, the results highlight that global and domestic value chains are complementary, rather than substitutive, in promoting export product quality. Finally, the study finds that digital finance positively moderates the relationship between domestic value chain embedding and export product quality.

Suggested Citation

  • Xiaoli, Ma & Benye, Shi & Hongliang, Lu & Raza, Ali, 2025. "Domestic value chain, digital finance and the quality of firm's export products," Research in International Business and Finance, Elsevier, vol. 77(PA).
    • Handle: RePEc:eee:riibaf:v:77:y:2025:i:pa:s0275531925001333
    DOI: 10.1016/j.ribaf.2025.102877
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531925001333
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2025.102877?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

    Keywords

    Domestic value chains; The quality of firm's export products; Dual circulation development pattern; Digital finance;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    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:eee:riibaf:v:77:y:2025:i:pa:s0275531925001333. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    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.