The Effect Of Productivity On Global Value Chain Participation:Dynamic Sequential Decision-making Approach

With the gradual deepening of production segmentation,more and more countries are linked by investment and trade which form a global production network,Enterprises exchange information and gain trade gains in this production network.In the process of GVC's participation in deepening,China shared the huge dividend of globalization.At present,global economic uncertainty is rising,trade protectionism is on the rise,and China's economy is entering a new normal.The decision-making transformation and dynamic upgrading of Chinese companies participating in GVC is an important issue that needs urgent research.The global value chain participation behavior of enterprises presents dynamic sequential characteristics.According to the heterogeneous enterprise trade theory,this paper takes the new participation in GVC enterprises as the research object,and uses the micro-data of the enterprise of China Industrial Enterprise Database and Customs Database from 2000 to 2007.This paper uses three different dynamic decision models to track the dynamic sequential effects of initial productivity and lagging productivity on their participation in decision-making during the initial and ongoing participation of the global value chain.In addition,the source of productivity is explored through a comparative analysis of labor productivity,capital productivity,and capitallabor ratio.The results show that both initial productivity and lagging productivity have a significant positive impact on the dynamic sequential decision-making of enterprise GVC participation,but this effect is limited to the short-term participation(within 3 years)and has no significant impact in the long run.Specifically: First,the initial productivity advantage has a great impact on the GVC participation decision in the first year.In the second year,the enterprise GVC continues to participate in the GVC decision,but the initial productivity will be promoted,once the company participates in GVC for 3 years and above,It is difficult to continue to exert its influence on the participation of enterprises in GVC;Secondly,the lag of the first-stage productivity advantage has a great impact on the GVC participation decision in the first year.In the second and third years,the enterprise GVC continues to participate in the GVC decisionmaking,which still plays a certain role in promoting the promotion,and the promotion effect is gradually weakened.Participating in 4 years or more,it is difficult to continue to exert its influence on the participation of enterprises in GVC;Finally,labor productivity has a significant positive impact on the dynamic sequential decision-making of corporate GVC participation,but this impact is limited to the short-term participation(within 3 years)and has no significant impact in the long run.The capital-labor ratio has a productivity advantage for the initial participation of the enterprise GVC,but it does not have a significant impact on its continuous participation in the dynamic sequential decision of GVC.Capital productivity has no significant impact on the dynamic sequential decision-making of enterprise GVC's initial participation and continuous participation.It can be seen that labor productivity and capital-labor ratio are the main sources of this short-term effect.Chinese companies still need to build new comparative advantages and enhance the endogenous driving force of GVC's long-term continuous participation.