Published in: AJBR Vol 15 Issue 2

Authors: Tingting Sun, Muhammad Asraf bin Abdullah

DOI: 10.14707/ajbr.250196

Abstract:

This study investigates the impact of global value chains (GVC) on the upgrading of China’s automobile industry (CAI), considering the mediating role of technology investment and the moderating effect of foreign direct investment (FDI). Using the DEA-Malmquist Productivity Index and a dynamic system GMM model on provincial data from 2000–2020, results show that GVC negatively affects industry upgrading by limiting technology investment. However, FDI mitigates this negative impact. These findings offer theoretical and policy insights into promoting CAI upgrading within the GVC context.

Keywords: Global value chain, Industrial upgrading, FDI, Technological innovation, GMM.

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