Abstract: The continuous refinement of production segmentation has transformed global trade patterns, offering new opportunities for developing economies to integrate into global production networks and elevate their positions in the value chain. This study applies social network analysis to explore the effects of production network development on value chain positioning and the underlying mechanisms, using node centrality metrics for the equipment manufacturing industry and the OECD’s world input-output table. The findings reveal that greater embeddedness of the equipment manufacturing industry in export networks promotes upward mobility in the value chain, while import network involvement has the opposite effect. However, the positive influence of export networks outweighs the negative impact of import networks, resulting in a net positive effect of production network centrality. The impact of production network integration on value chain status varies across industries and time periods. Mechanism tests highlight the critical roles of government regulation and R&D innovation in enabling the equipment manufacturing industry to enhance its value chain status. Furthermore, the influence of production networks on value chain positioning is non-linear, shaped by factors such as the interaction between depth and diversity of embedding, import and export networks, the Matthew effect, and crowding-out effects. This analysis underscores the complexity of production network dynamics and their transformative potential for value chain advancement.

Key words: global production networks, value chain division of labor, social network analysis, equipment manufacturing industry