Open AccessImpact of Economic Policy Uncertainty on the Stability of Enterprises Embedded in a Global Value Chain
Author(s) -
Huizheng Liu,
Jingyi Zhang,
Qi Han,
Wei Pan,
Muhammad Afaq Haider Jafri
Publication year - 2022
Publication title -
advances in management and applied economics
Language(s) - English
Resource type - Journals
ISSN - 1792-7544
DOI - 10.47260/amae/1223
Subject(s) - global value chain , business , value (mathematics) , embeddedness , economic stability , industrial organization , economic system , international trade , economics , comparative advantage , machine learning , sociology , computer science , anthropology , keynesian economics
The world economic situation is unpredictable, and uncertain factors accompanyeach other. Economic policy uncertainty (EPU) has become the main factoraffecting sustainable economic development and the stability of enterprisesembedded in the global value chain (GVC). This paper uses the duration ofembeddedness in the GVC to measure the stability of the embedded GVC andexplores the impact of domestic and foreign EPU on the stability of Chineseenterprises embedded in the GVC. The results show that the stability of Chineseenterprises embedded in the GVC is low; domestic and international EPU reducesthe stability of Chinese enterprises embedded in the GVC; and international EPUsignificantly reduces the stability of private enterprises, foreign invested enterprisesand enterprises involved in import and export of intermediate goods embedded inthe GVC, while domestic EPU significantly reduces the stability of state-ownedenterprises, private enterprises, large, medium and small enterprises and enterprisesinvolved in import and export of intermediate goods embedded in the GVC. In theinfluence mechanism, domestic EPU inhibits the innovation ability of enterprisesand then affects the stability of enterprises embedded in the GVC.JEL classification numbers: F620, F680Keywords: Economic policy uncertainty, Global value chain, Stability, Duration.