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International Production Networks and Export Performance in Developing Countries: Evidence from China

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  • Kevin Honglin Zhang

Abstract

Developing countries may expand their exports through participating in international production networks organized by multinational corporations. China appears to have been successful with this approach in the past two decades. Its exports rose from $9.8 billion in 1978 (ranked as thirty-second in the world) to $762 billion in 2005 (the third-largest in the world). In the same period, accumulated foreign direct investment (FDI) flows into China increased from zero to $602 billion, and exports by foreign-invested enterprises in 2005 comprised 57 percent of China's total exports. FDI promotes China's exports mainly through labor-intensive processes and component specialization within vertically integrated international industries. However, the challenge facing China is how to increase domestic value added and how to upgrade its industry in international production networks.

Suggested Citation

  • Kevin Honglin Zhang, 2007. "International Production Networks and Export Performance in Developing Countries: Evidence from China," Chinese Economy, Taylor & Francis Journals, vol. 40(6), pages 83-96, November.
    • Handle: RePEc:mes:chinec:v:40:y:2007:i:6:p:83-96
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    Cited by:

    1. Wang, Feilan & Wong, Wing-Keung & Reivan Ortiz, Geovanny Genaro & Shraah, Ata Al & Mabrouk, Fatma & Li, Jianfeng & Li, Zeyun, 2023. "Economic analysis of sustainable exports value addition through natural resource management and artificial intelligence," Resources Policy, Elsevier, vol. 82(C).
    2. Kevin Honglin Zhang, 2014. "Globalization and regional industrial performance: Evidence from China," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 269-280, June.
    3. Hurley, Dene T. & Papanikolaou, Nikolaos, 2021. "Autoregressive Distributed Lag (ARDL) analysis of U.S.-China commodity trade dynamics," The Quarterly Review of Economics and Finance, Elsevier, vol. 81(C), pages 454-467.
    4. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    5. Hiroyuki Taguchi, 2014. "Dynamic Impacts of Global Value Chains Participation on Asian Developing Economies," Foreign Trade Review, , vol. 49(4), pages 313-326, November.
    6. Sonali Madhusmita Mohapatra, 2021. "Export Performance: A Study of Labour and Capital Intensive Manufacturing Industries in India," IEG Working Papers 445, Institute of Economic Growth.

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