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Does participation in global value chain foster export concentration?

Author

Listed:
  • Bhushan P Jangam

    (Indian Institute of Technology Hyderabad, India)

  • Vaseem Akram

    (Indian Institute of Technology Hyderabad, India)

Abstract

This study examines the extent to which participation in global value chains (GVCs) enabled countries to specialize their exports by using a panel of 91 economies categorized into high, middle, and low-income groups from 1995 to 2017. Both the forward and backward linkages in GVCs are considered. By employing the cross-sectional augmented Im–Pesaran–Shin panel unit root test, we found that the variables are nonstationary across the income groups. The findings from the Westerlund cointegration test supports the long-run association between GVCs and export concentration for all the income groups. The long-run elasticities obtained using the dynamic ordinary least squares method provided mixed results for the various income groups. Moreover, the results derived using the Dumitrescu–Hurlin panel causality test provides evidence of mixed outcomes.

Suggested Citation

  • Bhushan P Jangam & Vaseem Akram, 2019. "Does participation in global value chain foster export concentration?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2913-2920.
    • Handle: RePEc:ebl:ecbull:eb-19-00589
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    References listed on IDEAS

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    Cited by:

    1. Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.
    2. Zhong, Zhangqi & Guo, Zhifang & Zhang, Jianwu, 2021. "Does the participation in global value chains promote interregional carbon emissions transferring via trade? Evidence from 39 major economies," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    3. Bhushan Praveen Jangam & Vaseem Akram, 2020. "Does financial integration drive export diversification? Evidence from a cross-country analysis," Journal of Financial Economic Policy, Emerald Group Publishing Limited, vol. 13(1), pages 45-61, April.

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    More about this item

    Keywords

    Global Value Chains; Export concentration; Panel unit root; Panel cointegration; Cross-sectional dependency;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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