Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 12, 2022 erstellt
Beschreibung:
The increased fragmentation of production on the global value chains (GVCs) is a key trend in internationaltrade. This study examines the causal effect of an investment in fixed assets on a firm’s position in theGVCs. It employs a combined panel data of Chinese firms spanning 2000–2007, where identification relieson a quasi-experimental design via China’s 2004 value-added tax reform to encourage fixed investmentpurchasing. Accordingly, investment in fixed assets decreases a firm’s GVC upstreamness of exports andimports, with a larger impact on the former, inducing a wider production stage span for GVC firms. Furthertrade margin analysis demonstrates that fixed investment firms import high-quality inputs from morespecific suppliers, followed by increasing exports. Notably, the findings explain the causal effect as theconcentration of a firm’s production operations, given specialized equipment from fixed investments, andchannels through which investment affects a firm’s positions