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The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data

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  • Gábor Márk Pellényi

Abstract

This paper examines the role of Central Eastern European economies within global value chains. Occupation-level employment data are combined with an input-output model to analyse the types of jobs sustained by exporting industries. Based on its initial comparative advantage of low wages, the region remains specialised in fabrication tasks, which limits the domestic value added content of exports. Functional upgrading – the acquisition of more sophisticated service tasks within firms – could improve value capture, but it progressed slowly between 2011-2018. It could be boosted by raising the supply of high-skilled workers and improving local R&D and innovation capabilities.

Suggested Citation

  • Gábor Márk Pellényi, 2020. "The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data," European Economy - Economic Briefs 062, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecobri:062
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    Cited by:

    1. Iskra Christova-Balkanska, 2021. "COVID-19 Implications on Global Value Chains in Bulgaria and Romania," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(1), pages 39-47, June.
    2. Ewa Cieślik, 2022. "A New Era Is Beginning in Central and Eastern Europe: Information and Communication Technology Services Exceed Manufacturing in the Global Production Chain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2607-2639, December.

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    More about this item

    Keywords

    value chain; Central Eastern Europe; upgrading; value capture; input-output model; The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data; Pellényi;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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