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Sustainability
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Preferential Trade Agreements and Global Value Chains
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Preferential Trade Agreements and Global Value Chains

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (28 February 2023) | Viewed by 17160

Special Issue Editor

Prof. Dr. Sajid Anwar

E-Mail Website
Guest Editor
School of Business and Creative Industries, University of the Sunshine Coast, Sippy Downs, QLD 4556, Australia
Interests: international national trade and finance; supply chain; carbon emissions; circular economy
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The improvements in communication and transportation technology have facilitated a rapid globalization. The net effect is a significant increase in international trade. To take advantage of the opportunities arising from increased trade, a number of countries have entered into preferential trade agreements. At the same time, there has also been a rapid increase in the international trade of intermediate goods, and hence, global value chains have become more important. This Special Issue deals with different aspects of preferential trade agreements and global value chains. Both micro- and macro-level studies on individual countries and groups of countries are welcome. However, all manuscripts must have policy implications. All submitted manuscripts will be subject to a rigorous peer-review procedure with the aim of rapid and wide dissemination of research results.

Some basic information on the link between global value chain and preferential trade agreements can be found at https://www.wto.org/english/res_e/booksp_e/gvcs_report_2017_chapter8_appendix.pdf

Prof. Dr. Sajid Anwar
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Global value chains
  • Preferential trade agreements
  • Trade in intermediate goods
  • Trade restrictions

Published Papers (4 papers)

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Research

25 pages, 1609 KiB  
Article
Low-End Lock-In of Chinese Equipment Manufacturing Industry and the Global Value Chain
by Yan Li, Huiying Sun, Jincheng Huang and Qingbo Huang
Sustainability 2020, 12(7), 2981; https://doi.org/10.3390/su12072981 - 08 Apr 2020
Cited by 14 | Viewed by 5328
Abstract
This paper focuses on the low-end lock-in problem faced by China’s equipment manufacturing industry, which is heavily involved in the global value chain (GVC). Specifically, we use the production chain length system and total trade accounting framework to measure some physical and economic [...] Read more.
This paper focuses on the low-end lock-in problem faced by China’s equipment manufacturing industry, which is heavily involved in the global value chain (GVC). Specifically, we use the production chain length system and total trade accounting framework to measure some physical and economic location indicators. The physical location measures the forward production length, backward production length, and the location index, whereas the economic location measures various types of value-added in industry exports. The results show that China’s equipment manufacturing industry has deepened its physical and economic low-end lock-in with the gradual deepening of China’s equipment manufacturing industry’s participation in GVC. From a segmented perspective, the manufacture of fabricated metal products (except machinery and equipment) and electrical equipment has the deepest degree of low-end lock-in physical location; the manufacture of computer, electronic, and optical products has the deepest degree of economic low-end lock-in. Therefore, China should accelerate its breakthroughs in the low-end locking dilemma and climb the GVC by adopting various measures such as accelerating the implementation of the intelligent manufacturing strategy, developing service-oriented equipment manufacturing industries, cultivating the domestic market, realizing low-carbon manufacturing, and improving enterprises’ independent innovation capabilities. Full article
(This article belongs to the Special Issue Preferential Trade Agreements and Global Value Chains)
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14 pages, 226 KiB  
Article
Impact of Embedded Global Value Chain on Technical Complexity of Industry Export—An Empirical Study Based on China’s Equipment Manufacturing Industry Panel
by Yan Li, Haiyan Zhang, Yihui Liu and Qingbo Huang
Sustainability 2020, 12(7), 2694; https://doi.org/10.3390/su12072694 - 30 Mar 2020
Cited by 15 | Viewed by 2965
Abstract
This study uses the World Input–Output Database (WIOD) to construct an export technical complexity index based on the effective elimination of imported foreign technology. The panel data of China’s equipment manufacturing industry from 2000 to 2014 are used as a sample, and the [...] Read more.
This study uses the World Input–Output Database (WIOD) to construct an export technical complexity index based on the effective elimination of imported foreign technology. The panel data of China’s equipment manufacturing industry from 2000 to 2014 are used as a sample, and the instrumental variable method is used to test the impact of the embedded global value chain on the technical complexity of industry exports. The impacts of different embedding time periods and different embedding methods on the technical complexity of industry exports are also explored with a view to providing reference recommendations to improve the technical complexity of China’s equipment manufacturing exports. The study finds that embedding a global value chain (GVC) can promote the export technical complexity of the equipment manufacturing industry, and with the improvement of domestic openness and industry research and development (R&D) investment conditions, the promotion effect will become increasingly potent. In addition, the backward and forward embedded global value chain (GVC) can promote the export technical complexity of the industry, and the effect of the promotion of backward embedding is even greater. Full article
(This article belongs to the Special Issue Preferential Trade Agreements and Global Value Chains)
24 pages, 688 KiB  
Article
Trade Agreements and Global Value Chains: New Evidence from China’s Belt and Road Initiative
by Fei Peng, Lili Kang, Taoxiong Liu, Jia Cheng and Luxiao Ren
Sustainability 2020, 12(4), 1353; https://doi.org/10.3390/su12041353 - 12 Feb 2020
Cited by 9 | Viewed by 4133
Abstract
This paper investigates the relationship between China’s trade agreements (TAs) and partner countries’ upgrade in global value chains (GVCs). We focus on the experience of China and relate China’s TAs with one belt and one road (OBOR) initiative. A structural equation model (SEM) [...] Read more.
This paper investigates the relationship between China’s trade agreements (TAs) and partner countries’ upgrade in global value chains (GVCs). We focus on the experience of China and relate China’s TAs with one belt and one road (OBOR) initiative. A structural equation model (SEM) is applied on a dataset including 216 countries and regions to identify the direct and indirect effects of China’s TAs and OBOR initiative on its export, outwards foreign direct investment (OFDI) and partner economy’ GVCs upgrade over the period 2010–2015. We find that China’s TA partner countries are more likely to be included in the OBOR initiative than those non-TA partner countries. The positive effects of China’s TAs and OBOR initiative on China’s export, outwards foreign direct investment (OFDI) and partner countries’ upgrade in GVCs differ across country groups at the different locations of GVCs. Both vertical and horizontal spillover effects exist in China’s TAs. Therefore, the partner countries at low end and middle of GVCs might benefit more from TAs with China than those richer countries at the high end of GVCs. Full article
(This article belongs to the Special Issue Preferential Trade Agreements and Global Value Chains)
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24 pages, 1426 KiB  
Article
Multiplex Relations between States: Coevolution of Trade Agreements and Political Alliances
by Yi Yi Mon, Seunghoo Lim and Makoto Kakinaka
Sustainability 2019, 11(14), 3911; https://doi.org/10.3390/su11143911 - 18 Jul 2019
Cited by 4 | Viewed by 3868
Abstract
The nature of interdependence between states encourages them to establish cooperation in different fields, leading to multiple relations. The policy alignments of states on trade and political relations can be regarded as the most critical agenda in a globalized world. Accounting for the [...] Read more.
The nature of interdependence between states encourages them to establish cooperation in different fields, leading to multiple relations. The policy alignments of states on trade and political relations can be regarded as the most critical agenda in a globalized world. Accounting for the linkages between economic and political issues, this study focuses on the two relational ties, (i) free trade agreements (FTAs) as economic cooperation and (ii) political alliances (PAs) as political cooperation. In addition, it evaluates the coevolution of FTAs and PAs by employing a multiplex stochastic actor-oriented model with longitudinal data of 160 countries during the period from 1990 to 2012. The results show that the presence of a PA inspires the formation of an FTA, but present no clear evidence that the presence of an FTA promotes the formation of a PA. Our analysis also shows that a state prefers to form both FTAs and PAs with trade hub partners that have more FTAs but prefers to form only PAs with political hub partners that have more PAs. This study argues that such asymmetric effects between FTAs and PAs emphasizes the preferences of states for liberalizing trade and connecting with partners that have many FTAs. Full article
(This article belongs to the Special Issue Preferential Trade Agreements and Global Value Chains)
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