IDEAS home Printed from https://ideas.repec.org/h/spr/spbchp/978-981-97-0021-9_3.html
   My bibliography  Save this book chapter

Upgrading in GVCs

In: Global Value Chains and Industrial Development

Author

Listed:
  • Ikuo Kuroiwa

    (University of Niigata Prefecture)

  • So Umezaki

    (Institute of Developing Economies, Japan External Trade Organization (IDE-JETRO))

Abstract

Unlike GVC participation, the methodology for GVC upgrading lacks a unified consensus. We categorize upgrading into three distinct types: functional, structural, and technological. Our empirical focus primarily lies on structural upgrading. We use the “flying geese” model as a reference to sequentially explain structural shifts that also influence the patterns of forward and backward participation. Our analysis reveals that the proportion of domestic value added (DVA) in exports, which is a benchmark for structural upgrading, has seen a downturn in certain regions. Nevertheless, the adverse effects on the share of DVA addition to exports are outweighed by the benefits of broader export expansion. The results of our econometric analysis can be summarized as follows. First, even after accounting for the three-dimensional fixed effects and traditional factors of GVC participation, two variables remain significant: domestic industrial capacity and the presence of an educated workforce. Second, an educated labor pool not only enhances the volume but also the share of DVA in exports. Lastly, the significance of an educated workforce becomes even more pronounced when structural upgrading is evaluated, especially concerning the share of DVA in exports within both the manufacturing and service sectors.

Suggested Citation

  • Ikuo Kuroiwa & So Umezaki, 2024. "Upgrading in GVCs," SpringerBriefs in Economics, in: Global Value Chains and Industrial Development, chapter 0, pages 47-71, Springer.
    • Handle: RePEc:spr:spbchp:978-981-97-0021-9_3
    DOI: 10.1007/978-981-97-0021-9_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:spbchp:978-981-97-0021-9_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.