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Does global value chain participation enhance domestic value‐added in exports? Evidence from emerging market economies

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  • Bhushan Praveen Jangam
  • Badri Narayan Rath

Abstract

This study aims to examine whether the participation of 24 emerging market economies (EMEs) in global value chains (GVCs) enhance the economic upgrading in the form of improvements in domestic value‐added exports over the period 1995–2011. To do so, first, the study explores the forward and backward participation in GVCs which shows an increasing level of GVCs participation. Second, this study empirically investigates the impact of GVCs on the domestic value‐added exports using panel feasible generalised least squares technique. The results reveal that both forward and backward participation has significantly improved the economic upgrading in case of EMEs. Further, the results show similar findings across several subgroups based on incomes, regions and others. Policies to foster greater GVC participation can help EMEs to tap the potential benefits associated.

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  • Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Does global value chain participation enhance domestic value‐added in exports? Evidence from emerging market economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1681-1694, April.
    • Handle: RePEc:wly:ijfiec:v:26:y:2021:i:2:p:1681-1694
    DOI: 10.1002/ijfe.1871
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    2. Hui Wang & Xin Zhong, 2023. "An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects," SAGE Open, , vol. 13(1), pages 21582440231, February.
    3. Raphaël Chiappini & Cyrielle Gaglio, 2024. "Digital intensity, trade costs and exports' quality upgrading," The World Economy, Wiley Blackwell, vol. 47(2), pages 709-747, February.
    4. 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).
    5. Xinheng Liu & Ziyuan Pan & Dongli Fang, 2023. "Agglomeration, resource reallocation and domestic value‐added ratio in exports," Growth and Change, Wiley Blackwell, vol. 54(1), pages 182-213, March.

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