The impact of input efficiency on the value chain embeddedness of rare earth enterprises

Abstract

We use the combined data of enterprises from the "China Industrial Enterprise Database" and the "China Customs Database" from 2000 to 2013 to examine whether and how the improvement in input efficiency of rare earth enterprises affects value chain embeddedness. The research finds that the improvement in input efficiency of rare earth enterprises has a significant enhancement effect on value chain embeddedness. The results show that the difference in the efficiency impact of capital input and labor input is around 3 %. Specifically, the improvement in input efficiency of enterprises will generate product expansion effects, quality effects, and technology effects, strengthening the ascent of the enterprise value chain. Furthermore, for enterprises in the middle segments of the industry chain, enterprises with low debt ratios, and enterprises in a relaxed financing environment, the efficiency of capital input has a more significant impact on improving the position of enterprises in the value chain.