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Dynamic Impacts of Global Value Chains Participation on Asian Developing Economies

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  • Hiroyuki Taguchi

Abstract

This article aims to investigate the dynamic economic impacts of global value chains (hereafter GVCs) participation by examining value-added-trade patterns focusing on Asian developing countries. Our main findings were as follows. First, an economy’s participation in GVCs in manufacturing sectors has allowed an absolute domestic value added for exports to contribute to GDP growth. Second, the development paths of domestic value added contribution to exports in a GVCs participating economy have followed ‘smile curve’ with the bottom being 5,651 US dollars in per capita GDP. Third, the turning points of smile curves differed according to manufacturing sectors: the sectors of machinery, electrical and transport equipment reach the turning point at higher per capita GDP than those of food, textile and wood products. These observations imply the dynamic process of GVCs impacts, where the initial stage of GVCs participation has reduced domestic value added contribution to exports, but it has been recovered at a later stage of GVCs involvement with upgrading domestic productive capacities. In particular, this recovery has taken a longer time for such high-value sectors as machinery, electrical and transport equipment.

Suggested Citation

  • Hiroyuki Taguchi, 2014. "Dynamic Impacts of Global Value Chains Participation on Asian Developing Economies," Foreign Trade Review, , vol. 49(4), pages 313-326, November.
    • Handle: RePEc:sae:fortra:v:49:y:2014:i:4:p:313-326
    DOI: 10.1177/0015732514543586
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    Cited by:

    1. Taguchi, Hiroyuki, 2018. "The involvement in global value chains and its policy implication in Vietnam," MPRA Paper 84367, University Library of Munich, Germany.
    2. Taguchi, Hiroyuki & Lar, Ni, 2015. "FDI, industrial upgrading and economic corridor in Myanmar," MPRA Paper 64411, University Library of Munich, Germany.
    3. Biswajit Nag & Debashis Chakraborty & Author-Name: Sakshi Aggarwal, 2021. "India’s Act East Policy: RCEP Negotiations and Beyond," Working Papers 2101, Indian Institute of Foreign Trade.
    4. Hiroyuki Taguchi & Jiejun Li, 2018. "Domestic Value Creation in the Involvement in Global Value Chains: The Case of Chinese Economy," Asian Development Policy Review, Asian Economic and Social Society, vol. 6(3), pages 155-168, September.
    5. Nidhi Bagaria, 2022. "Analysing Opportunities for India in Global Value Chains in Post COVID-19 Era," Foreign Trade Review, , vol. 57(3), pages 261-282, August.
    6. Taguchi, Hiroyuki, 2018. "Domestic value creation in global value chains in Asian economies," MPRA Paper 89741, University Library of Munich, Germany.
    7. Taguchi, Hiroyuki, 2018. "Domestic value creation in the involvement in global value chains: Evidence of China," MPRA Paper 88436, University Library of Munich, Germany.
    8. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    9. Taguchi, Hiroyuki, 2021. "The turning point of global value chain's Position: The case of emerging East Asian economies," MPRA Paper 109795, University Library of Munich, Germany.
    10. Hiroyuki Taguchi & Ken Nibayashi, 2021. "The Turning Point of Global Value Chain's Position in Emerging East Asian Economies," Economics Bulletin, AccessEcon, vol. 41(3), pages 1826-1842.
    11. Biswajit Nag & Debashis Chakraborty & Sakshi Aggarwal, 2021. "India’s Act East Policy: RCEP Negotiations and beyond," Working Papers 2150, Indian Institute of Foreign Trade.
    12. Sakshi Aggarwal & Debashis Chakraborty, 2022. "Which Factors Influence India’s Intra-Industry Trade? Empirical Findings for Select Sectors," Global Business Review, International Management Institute, vol. 23(3), pages 729-755, June.
    13. Taguchi, Hiroyuki & Pham, Son Duong, 2019. "Domestic Value Creation in the Involvement in Global Value Chains in Asian Economies: Role of Supporting Industries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(10), pages 1184-1199, October.

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    More about this item

    Keywords

    Global value chains; Asian developing economies; value added trade; manufacturing sectors; development paths; smile curve;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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