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Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries

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  • Kordalska, Aleksandra
  • Olczyk, Magdalena

Abstract

The goal of the paper is to verify a causal relationship between forward linkages from domestic services to manufacturing and the participation/position of a country in global value chains (GVCs) in selected Central and Eastern European economies. We observed a strong polarisation pattern: the Baltic countries along with the Czech Republic strengthen their positions and participation in GVCs by having a strong relationship between the financial sector and manufacturing, while Poland, Hungary, and Slovakia have solid linkages between transportation services and manufacturing. We also discover that the reverse relationship is significant.

Suggested Citation

  • Kordalska, Aleksandra & Olczyk, Magdalena, 2021. "Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 125-137.
    • Handle: RePEc:eee:streco:v:58:y:2021:i:c:p:125-137
    DOI: 10.1016/j.strueco.2021.05.003
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    Cited by:

    1. Stojčić, Nebojša & Matić, Matija, 2024. "A journey toward global value chain upgrading: Exploring the transition from backward to forward integration," Technology in Society, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    CEE countries; forward linkages; GVCs; Granger causality; services;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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