An Empirical Study on the Impact of Global Value Chain Embeddedness on the Trade of Electromechanical Products between China and the “Belt and Road” Countries

The division of labor in the global value chain of electromechanical products, as the main products exported by China to the countries along the “Belt and Road”, has become the focus of current research. Based on the sample data of 38 countries along the “Belt and Road” included in the Global Value Chain Database from 2015 to 2021, the article selects six control variables, namely, capital endowment, technological level, GDP per capita, local currency exchange rate, carbon emission and opening-up level, and investigates the relationship between the global value chain and the increase of China's exports of electromechanical products in bilateral trade by means of the bi-directional fixed-effects regression model. The study investigates the relationship and mechanism between global value chains and the value added of China's exports of electromechanical products in bilateral trade through a two-way fixed-effect model regression method. The study finds that the degree of participation in GVCs has an inhibitory effect on China's exports of electromechanical products, and that the level of technology, GDP per capita, carbon emissions and the level of opening up to the outside world have a positive promotional effect on China's exports of electromechanical products. Based on the conclusions of the study, targeted policy recommendations at the government, industry and enterprise levels are proposed.