The Impact of Global Value Chains on the International Competitiveness of Chinese Banks: A Quantitative Analysis

The current study provides a comprehensive quantitative analysis of the impact of Global Value Chains (GVCs) on the global presence, financial health, and competitiveness of Chinese banks from 2000 to 2023. Econometric models are employed to quantify how China’s integration into GVCs has shaped its banking sector, with a particular focus on expansion and performance on the global stage. Objectives include assessing the influence of GVC participation on the internationalization strategies of Chinese banks, examining the relationship between GVC-related trade flows and financial performance indicators such as return on assets (ROA) and return on equity (ROE), and analyzing the competitive positioning of these banks in the global market. The methodology involves panel data regression analysis, leveraging a dataset that encompasses trade volumes, foreign direct investment (FDI) flows, and various financial metrics. Findings suggest that GVC integration correlates positively with enhanced global presence and improved financial performance metrics among Chinese banks. This study not only elucidates the direct impacts of GVC dynamics on bank performance but also highlights broader implications for international trade and economic policy.