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has been cited by the following article:

• TITLE: The Heterogeneous Effects of Trade Agreements on Global Value Chain Participation: Who Specializes Matters!

  AUTHORS: Huibing Cheng, Hong He, Yuanjiang Cai, Shanshui Zheng

  KEYWORDS: Trade Agreements (TAs), Global Value Chain (GVC) Participation, Heterogeneous Effects

  JOURNAL NAME: Open Journal of Business and Management, Vol.11 No.6, November 10, 2023

  ABSTRACT: Using difference-in-differences (DID) estimation technique on data, which covers 43 countries over the 2005-2014 period, we examine the impact of trade agreements (TA) on bilateral global value chain (GVC) participation. Empirical estimation results show that TAs between member countries with different levels of economic development are more likely to promote bilateral GVC participation. Moreover, the effects of TAs on bilateral GVC participation levels are heterogeneous across member countries. Specifically, TAs have a higher impact on forward GVC participation of developed member countries than that of developing member countries but the effect on backward GVC participation of developed member countries is smaller than that of developing member countries. Finally, the heterogeneous effect is larger in size in the case of deep TAs. This study not only enriches the literature on the relationship between trade agreements and bilateral GVC participation but also provides a new idea for economies to promote bilateral GVC participation.