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Asian Global Value Chain Upgradation: Comparing Technology And Trade Performance

Author

Listed:
  • Kashika Arora

    (Research Scholar, Indian Institute of Foreign Trade, New Delhi)

  • Areej A. Siddiqui

    (Assistant Professor, Indian Institute of Foreign Trade, New Delhi)

Abstract

This paper aims at determining how technological capabilities interact with trade and global value chains (GVCs) participation to aid in the upgradation process. By constructing a panel data set and analysing through FGLS modelling, we observe trade performance of 14 developing countries from 2000 to 2018. It is found that technological capabilities determine the initial structure of local firms in trade and GVCs and they also deliberate the extent to which local firms in developing countries manage to leverage knowledge flows and move into activities of greater technological complexity in accordance with their existing comparative advantages. The results point to the critical role of national learning variables impacting countries’ performance over time measured by manufacturing value added. While emerging economies have synergistic relationships between variables explaining technological capabilities and trade and GVC performance, however, certain innate country effects have also their role to play.

Suggested Citation

  • Kashika Arora & Areej A. Siddiqui, 2021. "Asian Global Value Chain Upgradation: Comparing Technology And Trade Performance," Working Papers 2152, Indian Institute of Foreign Trade.
    • Handle: RePEc:ift:wpaper:2152
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade; global value chains (GVCs); technological capabilities; developing countries; panel data.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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