Impact of Domestic Demand on the Global Value Chain Position of Manufacturing

Evidence From a Cross‐Country Analysis

Bibliographic Data

ID19233124
AuthorsQingyuan Dong (0000-0001-8153-2970, School of Economics Zhejiang University of Technology Hangzhou China), Qunyang Du (0000-0001-7846-6888, School of Economics Zhejiang University of Technology Hangzhou China, corresponding author)
Year2026
Volume49
Issue5
Pages1054-1071
Publication date2026-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.70078
OpenAlexW7134184728
LanguageEN
References cited57

This study examines how domestic demand affects manufacturing global value chain (GVC) positions using OECD input–output data. The findings indicate that domestic demand significantly enhances GVC positioning, particularly in developing countries and non‐knowledge‐intensive sectors. These mechanisms include promoting research and development (R&D) innovation, improving factor allocation efficiency and enhancing institutional quality. Moreover, domestic demand expansion strengthens the GVC positions of both the upstream and downstream industries through industrial linkage effects. Finally, this study examines the moderating effects of industrial specialisation and demand diversification. Overall, these results highlight the multifaceted impact of domestic demand on fostering high‐quality GVC participation

Derived demand · Final demand · Global value chain · Manufacturing · Environmental Impact and Sustainability · Global trade and economics · Global trade, sustainability, and social impact

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