IDEAS home Printed from https://ideas.repec.org/a/ahs/journl/v10y2025i2p728-757.html
   My bibliography  Save this article

Does GVC Participation Enhance Economic Performance? Evidence from the Turkish Manufacturing Sector

Author

Listed:
  • Ali Benli
  • Özgür Tonus

Abstract

This study investigates the potential economic gains for the Turkish economy from increased participation in Global Value Chains (GVCs). Participation in GVCs enables more specialized production processes, enhancing economic efficiency and leading to increased exports, value added, and employment. This study uses the CS-ARDL method through a triple regression model to estimate the effects of forward and backward GVC participation on exports, the influence of increases in exports on the share of domestic value-added in exports, and the effects of export-driven domestic value-added on employment. The research employs OECD's Trade in Value Added (TiVA) data covering the period 1995-2020 and 17 manufacturing sub-sectors of Türkiye. Findings indicate that both forward and backward participation in GVCs positively influence export performance. Increases in exports decrease the share of domestic value-added while increasing the share of foreign value-added in exports, suggesting high foreign input dependency in Türkiye's exports. Although the share of domestic value-added in exports decreases, its overall size still increases. Rises in domestic value-added also increase employment. The research shows that policies aimed at Türkiye's deeper integration into GVCs can support exports and employment.

Suggested Citation

  • Ali Benli & Özgür Tonus, 2025. "Does GVC Participation Enhance Economic Performance? Evidence from the Turkish Manufacturing Sector," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(2), pages 728-757.
    • Handle: RePEc:ahs:journl:v:10:y:2025:i:2:p:728-757
    DOI: 10.30784/epfad.1667010
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/tr/download/article-file/4732036
    Download Restriction: no
    File URL: https://libkey.io/10.30784/epfad.1667010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    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

    Statistics

    Access and download statistics

    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:ahs:journl:v:10:y:2025:i:2:p:728-757. 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: Ersan Ersoy (email available below). General contact details of provider: https://epfjournal.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.