IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i3sp888-905.html

Impact of Global Value Chain on Multidimensional Poverty in Nigeria

Author

Listed:
  • YISAU, Tosin Ovayioza

    (Department of Economics, Rivers State University, Nigeria.)

  • EWUBARE, Dennis

    (Department of Economics, Rivers State University, Nigeria.)

  • CHUWKU, SANCHO

    (Department of Economics, Rivers State University, Nigeria.)

  • OLADOSU, Isaac Olubiyi

    (Department of Economics, University of Port Harcourt, Nigeria)

Abstract

The purpose of this research was to examine the impact of the global value chain on multidimensional poverty in Nigeria. An empirical evaluation of the study was conducted spanning a duration of thirty-three years, specifically from 1990 to 2022. The backward GVC participation index, the forward GVC participation index, and the total GVC participation index served as surrogates for the global value chain, whereas the multidimensional poverty index was utilized as a proxy for multidimensional poverty. The research employed annual time series data primarily obtained from the World Bank’s World Development Indicators (WDI) and the National Bureau of Statistics (NBS). The employed methods for data analysis consist of the Augmented Dickey Fuller (ADF) statistic, the Bounds Cointegration test, the Correlation Matrix, and the ARDL approach. The findings from the unit root test indicated that the variables exhibited mixed stationarity. Specifically, I(0) and I(1). The results of the bounds cointegration test indicated that the multidimensional poverty index, the backward GVC participation index, the forward GVC participation index, and the total GVC participation index are all related in the long term. Last but not least, the backward GVC participation index, forward GVC participation index, and total GVC participation index have a negative and statistically significant short-term and long-term impact on the multidimensional poverty index in Nigeria, according to the ARDL results. The study’s conclusions, derived from its findings, indicate that the global value chain significantly contributes to the mitigation of multidimensional poverty in Nigeria. It was suggested, among other things, that in order to alleviate poverty, the government should intensify policy measures to further strengthen the business and regulatory environment so that domestic firms and globally successful transnational corporations would be enticed to invest in GVC.

Suggested Citation

  • YISAU, Tosin Ovayioza & EWUBARE, Dennis & CHUWKU, SANCHO & OLADOSU, Isaac Olubiyi, 2024. "Impact of Global Value Chain on Multidimensional Poverty in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 888-905, March.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:3s:p:888-905
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-3s/888-905.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/impact-of-global-value-chain-on-multidimensional-poverty-in-nigeria/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Gopalan, Sasidaran & Reddy, Ketan & Sasidharan, Subash, 2022. "Does digitalization spur global value chain participation? Firm-level evidence from emerging markets," Information Economics and Policy, Elsevier, vol. 59(C).
    3. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    4. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    5. Ana Margarida Fernandes & Hiau Looi Kee & Deborah Winkler, 2022. "Determinants of Global Value Chain Participation: Cross-Country Evidence," The World Bank Economic Review, World Bank, vol. 36(2), pages 329-360.
    6. Innocent .U. Duru & Bartholomew .O.N. Okafor & Friday .O. Adikwu & Franklin .C. Njoku, 2020. "Trade Liberalization and Economic Growth: An Assessment of Nigerian Experience," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(3), pages 194-213, September.
    7. Duru, Innocent .U. & Okafor, Bartholomew .O.N. & Adikwu, Friday .O. & Njoku, Franklin .C., 2020. "Trade Liberalization and Economic Growth: An Assessment of Nigerian Experience," Asian Development Policy Review, Asian Economic and Social Society, vol. 8(3), pages 194-213.
    8. Pol Antràs & Davin Chor, 2013. "Organizing the Global Value Chain," Econometrica, Econometric Society, vol. 81(6), pages 2127-2204, November.
    9. Mohamedou Nasser dine, 2019. "Impact of Global Value Chains’ Participation on Employment in Turkey and Spillovers Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 308-326.
    10. repec:wbk:wbpubs:24426 is not listed on IDEAS
    11. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    12. Karishma Banga, 2016. "Impact of Global Value Chains on Employment in India," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 31(3), pages 631-673.
    13. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, December.
    14. Shuzhong Ma & Yinfeng Liang & Hongsheng Zhang, 2019. "The Employment Effects of Global Value Chains," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(10), pages 2230-2253, August.
    15. Shujiro Urata & Youngmin Baek, 2021. "Does GVC Participation Improve Firm Productivity? A Study of Three Developing Asian Countries," ADBI Working Papers 1245, Asian Development Bank Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ndubuisi, Gideon & Owusu, Solomon, 2021. "Wage effects of global value chains participation and position: An industry-level analysis," MERIT Working Papers 2021-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Can Li & Qi He & Han Ji, 2023. "Can Global Value Chain Upgrading Promote Regional Economic Growth? Empirical Evidence and Mechanism Analysis Based on City-Level Panel Data in China," Sustainability, MDPI, vol. 15(15), pages 1-22, July.
    3. Ndubuisi, Gideon & Mensah, Emmanuel B. & Avenyo, Elvis K. & Sakyi, Daniel, 2025. "Global value chains and the innovativeness of firms in Africa," Technovation, Elsevier, vol. 146(C).
    4. Pol Antràs & Davin Chor, 2021. "Global Value Chains," NBER Working Papers 28549, National Bureau of Economic Research, Inc.
    5. Amat Adarov & Robert Stehrer, 2021. "Implications of foreign direct investment, capital formation and its structure for global value chains," The World Economy, Wiley Blackwell, vol. 44(11), pages 3246-3299, November.
    6. M Mancini & P Montalbano & S Nenci & D Vurchio, 2024. "Positioning in Global Value Chains: World Map and Indicators, a New Dataset Available for GVC Analyses," The World Bank Economic Review, World Bank, vol. 38(4), pages 669-690.
    7. Richard Baldwin & Rebecca Freeman & Angelos Theodorakopoulos, 2022. "Horses for Courses: Measuring Foreign Supply Chain Exposure," NBER Working Papers 30525, National Bureau of Economic Research, Inc.
    8. Feng, Suling & Zhang, Rong & Di, Danyang & Li, Guoxiang, 2024. "Does digital transformation promote global value chain upgrading? Evidence from Chinese manufacturing firms," Economic Modelling, Elsevier, vol. 139(C).
    9. Yang, Qizhong, 2024. "Heterogeneous impact of non-tariff measures on import margins through global value chains: Firm-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 533-562.
    10. Shang-Jin Wei & Yinxi Xie, 2018. "The Wedge of the Century: Understanding a Divergence between CPI and PPI Inflation Measures," NBER Working Papers 24319, National Bureau of Economic Research, Inc.
    11. Wu Shiyi & Niu Rui, 2025. "How GVC Embeddedness Affects Firms’ Innovation Level: Evidence from Chinese Listed Companies," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-20.
    12. Bishwanath Goldar & Deb Kusum Das & Pilu Chandra Das & Neha Gupta, 2020. "Domestic Versus Imported Contents in Exports: The Case of India’s Merchandise Trade," Journal of South Asian Development, , vol. 15(1), pages 62-96, April.
    13. Reddy, Ketan & Sasidharan, Subash, 2024. "Global value chains, productivity and markup: Evidence from India," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 250-271.
    14. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    15. Kim, Dongin & Steinbach, Sandro & Zurita, Carlos, 2024. "Deep trade agreements and agri-food global value chain integration," Food Policy, Elsevier, vol. 127(C).
    16. Carlo Altomonte & Laura Bonacorsi & Italo Colantobe, 2018. "Trade and Growth in the Age of Global Value Chains," BAFFI CAREFIN Working Papers 1897, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    17. Montalbano, Pierluigi & Nenci, Silvia, 2022. "Does global value chain participation and positioning in the agriculture and food sectors affect economic performance? A global assessment," Food Policy, Elsevier, vol. 108(C).
    18. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Global Value Chains and Wages: Multi-Country Evidence from Linked Worker-Industry Data," Open Economies Review, Springer, vol. 30(3), pages 505-539, July.
    19. Zhang, Zengkai & Zhu, Kunfu, 2017. "Border carbon adjustments for exports of the United States and the European Union: Taking border-crossing frequency into account," Applied Energy, Elsevier, vol. 201(C), pages 188-199.
    20. Stöllinger, Roman, 2021. "Testing the Smile Curve: Functional Specialisation and Value Creation in GVCs," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 93-116.

    More about this item

    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:bcp:journl:v:8:y:2024:i:3s:p:888-905. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    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.