The Research Of The Impact Of China’s Overseas Economic And Trade Cooperation Zones On The Development Of Host Countries In Global Value Chain

With the reduction of transportation costs(Venables et al.,1999)and the promotion of regional economic integration process,the threshold for countries and regions to participate in the global value chain(GVC)has gradually decreased,while for small and medium-sized enterprises,which are mostly located in developing countries,it is still difficult to integrate into GVCs.Even if they hve integrated into GVCs,they are easy to be locked in the "low end" or marginal region of the value chains because of the disadvantages of economic development,factor endowment,location factors and even the lack of voice in the international economic and trade system(Dai and Song,2021).Based on its share in the total volume of world economies,the optimization and sustainable development in GVCs of developing countries and emerging economies are not only related to their own positions or benefits in the international division of labor system,but also an important issue of global economic development(World Bank,2020).With the growth of China’s economic scale and the expansion of its global influence,China has put forward the "the Belt and Road" initiative,which is committed to promoting the economic policy coordination of developing countries along the Belt and Road and carrying out cooperation in a broader way and a higher level.The report to the 20 th National Congress of the Communist Party of China further pointed out that we should continue to deepen economic and trade cooperation along the "the Belt and Road",to build high-level overseas economic and trade cooperation zones(COCZs),to strengthen the cooperation with developing countries,to expand mutual benefits and to achieve win-win results.With the deepening of the "the Belt and Road" construction and the important goal of China’s participation in the reform of the global economic governance system,COCZs are not only an important carrier of China’s openingup in the new era and the contruction of the "the Belt and Road",but also gradually become a major undertaking point to promote the construction and optimization of the global value chain.Their social and economic effects on the host countries have also gradually attracted attention.Therefore,based on the realistic background of the rapid development of COCZs and the increasing importance of developing countries participating in GVCs,this study examines the impact of COCZs on the participation,positions,and profitability of the host countries in the global value chain,and comprehensively evaluates the role of COCZs in the development of host countries in value chains.This study firstly constructs the basic theoretical framework and research hypothesis for the impact of COCZs on the GVC participation,positions and the value-added exports of host countries based on the relationship between the three dimension which are used to measure the development in GVCs,the characteristics of COCZs and the interfering factors of GVCs.Firstly,the GVC participation,position and value-added exports measure the development level in GVCs from different perspcetives including GVC correlation,relative value creation capability and absolute value creation capability,reflecting the development process from participation in GVCs to added value creation and then to income enhancement.At the same time,the improvement of business environment brought by COCZs would affect the overall development level of host countries in GVCs.Secondly,the foreign direct investment inflow brought by COCZs in the short term would effectively enhance the participation degree of host countries in GVCs.Thirdly,the factor endowment level and the capability to absorb technology spillovers would affect the effects of COCZs on host countries’ GVC positions.Lastly,the industrial agglemoration effects could promote the expansion of value-added exports of host countries.Based on the theoretical framework,this study uses the data of EORA26 database and the information dataset of COCZs to empirically test the hepotheses.The main conclusions are as follows:The research results based on the GVC participation show that the construction of COCZs can effectively promote the participation of host countries in the value chains.A series of placebos and robustness tests have demonstrated this main conclusion.Secondly,the mechanism tests reveal that the effect of COCZs on the participation of the host countries in value chains is mainly achieved by attracting foreign direct investment.In addition,it can also be achieved by improving the overall business environment of the host countries,including the institutional enviroment and infrastructure construction.Lastly,the heterogeneity analysis based on the national level show that the construction of COCZs will be more beneficial to the improvement of the GVC participation of developing countries than that of developed countries.For countries with more abundant labor resources and similar industrial structure to China,the impact of COCZs is greater as well.The heterogeneity analysis based on the industry level show that COCZs has a greater positive effect on the participation of the leading industries in the cooperation zones and the comparative advantage industries of host countries.The research results based on the GVC positions show that,firstly,the construction of COCZs can effectively promote the upgradance of the host countries’ GVC positions.A series of placebos and robustness tests have demonstrated this main conclusion.Secondly,the effect of COCZs on the promotion of the host countries’ GVC positiona will be affected by the host countries’ production factor endowment,the technology spillover level and the business environment.The agglomeration of advanced production factors,the enhancement of technology spillovers and the improvement of business environment all contribute to the upgradance of the host countries’ GVC positions.Thirdly,the heterogeneity analysis at the national level show that the construction of cooperation zones will be more beneficial to the enhancement of GVC positions of developed countries than that of developing countries.For countries with stronger innovation capacity and technology spillover absorption capacity,COCZs have a greater positive effect on their positions as well.The heterogeneity analysis based on the industrial level show that the construction of COCZs has a greater GVC position promotion effect on the industries with higher degree of cooperation with China and the industries with obvious comparative advantages.Lastly,the researches based on the value-added exports show that,firstly,the construction of COCZs can effectively promote the expansion of value-added exports of host countries.A series of placebos and robustness tests have demonstrated this main conclusion.Secondly,the mechanism through which the COCZs exert on the expansion of value-added exports of the host country is industrial agglomeration and the improvement of business environment.Thirdly,based on the heterogeneity analysis at the national level,the construction of COCZs has a more significant role in promoting the value-added exports of the host countries with richer natural resources and labor resources.The research based on the the industrial level show that the value-added exports expansion effect of COCZs on industries with higher dependence on China and advantageous industries of the host country is greater.Extensive researches show that the increase in value-added exports of host countries is universal,but it has more significantly promoted to the "the Belt and Road" countries,developing countries and neighboring countries.This study enriches the relevant theoretical researches and signifies a series of empirical insights as well.Firstly,based on the construction of COCZs,a representative form of regional economic and trade cooperation,this study comprehensively and systematically explores the development issues of developing countries in the global value chain,enriching theoretical research related to value chain economy.By constructing a theoretical framework and empirical models,the impact and mechanisms through which the construction of COCZs exert on the host countries were tested,enriching and expanding relevant theoretical researches on the influence factors,the optimization and upgradance of value chain economy.Secondly,this article enriches the theoretical researches on the effects and policy evaluation of Chiness overseas economic and trade cooperation zones.On the one hand,this article broadens the research perspective on the impact of cooperation zones from the perspective of global value chain,and enriches the existing researches on the impact of cooperation zones on the economic growth.On the other hand,this article shifts the research perspective from China to the domestic industrial level of the host country,which not only helps to measure its effectiveness and adaptability as a platform for promoting regional economic and trade cooperation,but also deepens the understanding of its specific role in promoting sustainable development and enhancing the actual competitiveness and value chain benefits of host countries.Against the backdrop of China’s efforts to promote the implemention of high-quality opening-up policy,the expansion the convergence of interests among countries,and to create a favorable external environment,this study focusing on the economic effects of COCZs provides ideas and references for China’s policy formulation and practice of deepening foreign economic and trade relations,expanding cooperation space,and consolidating the foundation of bilateral cooperation.Targeted strategies have been provided to promote coordinated and benign interactions among major powers and deepen the economic and trade relations with neighboring countries.Thirdly,in the context of the deepening of the "the Belt and Road" construction and the goal of China’s participation in global governance,this study provides experience for promoting regional production capacity cooperation and economic and trade development,and driving the developing countries to achieve the optimization and upgradance in the value chain economy.It helps China to contribute its strength to global governance and promote mutual opening-up,and highlights China’s solemn commitment to promote cooperation and the well-being of humanity.Finally,this study provides theoretical support and empirical reference for developing countries and emerging markets to implement industrial cooperation and to enhance their actual benefits in the global value chain.Based on the long-term disadvantage of developing countries in the development of the value chain economy and their active pursuit of better participation in the value chains,this article demonstrates the positive role of COCZs on their development in the value chain economy for developing countries,providing a reference for the strategic formulation of industrial cooperation among developing countries.