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Quantitative linkage between global value chains’ backward participation and logistics performance in the host country: a structural gravity model analysis of emerging ASEAN economies

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  • Hiroyuki Taguchi

    (Saitama University)

  • Mon Soe Thet

    (Saitama University)

Abstract

This article addresses issues on the degree of participation in global value chains (GVCs) for emerging economies in the Association of Southeast Asian Nations (ASEAN). The main research question is whether there is a linkage between GVC backward participation, that is, vertical trade defined as the foreign value embedded in exports and logistics performance as a component of service links in the host country. The major contributions of this study are the usage of the UNCTAD-Eora Global Value Chain Database for describing vertical trade and the application of a “structural” gravity model setting for the specification of estimated equations. The statistical observations demonstrate that GVC backward participation in emerging ASEAN economies made substantial progress during the 1990s with per capita GDP growth, and a large gap occurred in the degree of GVC backward participation between forerunners and latecomers in the ASEAN economies. Empirical estimation can also identify a quantitative linkage between GVC backward participation and logistics performance in the host country.

Suggested Citation

  • Hiroyuki Taguchi & Mon Soe Thet, 2021. "Quantitative linkage between global value chains’ backward participation and logistics performance in the host country: a structural gravity model analysis of emerging ASEAN economies," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 453-475, June.
    • Handle: RePEc:spr:apjors:v:5:y:2021:i:2:d:10.1007_s41685-020-00187-z
    DOI: 10.1007/s41685-020-00187-z
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    More about this item

    Keywords

    Global value chains; Logistics performance; ASEAN forerunners and latecomers; Vertical trade; Structural gravity model;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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