The Impact Of Regional Trade Agreemens On Participation In Global Value Chains

The deepening of global value chain division of labor and the symbiotic development of regional trade agreements are one of the main development methods in the field of international trade today.The production of a product is completed through division of labor and cooperation among various countries,gradually shifting from horizontal division of labor to vertical division of labor.The export of products is no longer limited to the export of final products,and intermediate products will also undergo multiple cross-border transactions.The global trade structure has shifted from final product trade to intermediate product trade.In order to examine the mechanism by which the signing of regional trade agreements affects the participation of economies in the global value chain,the article uses the heterogeneity of regional trade agreement clauses to construct an RTA depth indicator measurement system.Based on the World Bank’s trade agreement database data,the depth of trade agreements is calculated,and the global value chain embedding level of each economy is calculated using Koopman(2012)and Wang(2013)methods,Exploring the development strategy of economic participation in regional economic and trade cooperation based on empirical research results.The research results indicate that:(1)Overall,the depth level of regional trade agreements has a significant promoting effect on the participation of countries in the global value chain.(2)From the perspective of the types of trade agreement clauses,compared to "WTO-X","WTO+" has a greater impact on increasing value chain participation.From the perspective of economic types,the deepening of regional trade agreements has a more significant impact on the enhancement of the value chain status of developing countries.(3)From various regulatory factors,the closer an economy is geographically located,the more conducive regional trade agreements are to the development of its global value chain.By studying the impact of trade protection and dilution effects,it can be concluded that the earlier a bilateral RTA is signed,the more effective it is to establish a competitive advantage and protect one’s market position in other countries.(4)Further mechanism testing indicates that RTA can promote the value chain status of economies by reducing tariff barriers and promoting outward investment.In the current trend of international economic development,this article will provide reference choices for countries to build highquality regional trade agreements for cooperation models.