Do Global Value Chains Enhance Economic Upgrading? A Long View
187 citations recorded by the source corpus.
Abstract Exporting through global value chains (GVCs) has recently been highlighted as a panacea for weak industrialisation trends in the South. We study the long-run effects of GVC participation for a large set of countries between 1970 and 2008. We find strong evidence for the positive effects on productivity growth in the formal manufacturing sector. This effect is stronger when the gap with the global productivity frontier is larger. However, we find no evidence for a positive effect on employment generation. These findings also hold in analyses of sub-sets of countries and industries and are robust to the inclusion of non-manufacturing employment.
Subfields: Economics and Econometrics, Political Science and International Relations, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/f8f19f0666105725b319b434ff4be336af3f1f76
Citations in the corpus
- Determinants of Global Value Chain Participation: Cross-Country Evidence (2020, unknown): “Empirical evidence across and within countries confirms that GVC participation fosters productivity, value-added, and growth (Constantinescu, Mattoo, and Ruta 2019; World Bank 2019; Stolzenburg, Taglioni, and Winkler 2019; Pahl and Timmer 2020).”