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Cross-country convergence in global value chains: Evidence from club convergence analysis

Author

Listed:
  • Bhushan Praveen Jangam
  • Badri Narayan Rath

Abstract

We investigate the evidence of convergence/divergence in global value chain (GVC) participation across 61 countries from 2005 to 2015, employing the panel club convergence technique. The findings do not support evidence of absolute convergence, but evidence of club convergence. Seven clubs and a non-convergent group are identified, signifying that the types of activities are not uniform across countries, each club following a unique transition path. Further, we examine convergence in the forward and backward participation of GVCs. The findings reveal similar evidence of club convergence. Policies targeting GVCs need to consider the transition path of each club for better outcomes.

Suggested Citation

  • Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.
    • Handle: RePEc:cii:cepiie:2020-q3-163-9
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    Cited by:

    1. Jeet Saha & Zafar Iqubal, 2026. "Empirical Evidence on the Grand Convergence of Infant Mortality Rates," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 19(1), pages 181-204, February.
    2. Cheng, Jiajia & Yu, Zhuangxiong & Xue, Zhaojie & Yang, Yang & Shi, Xunpeng, 2024. "Firms' GVC positioning and corporate environmental performance: Micro evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 268-278.
    3. Giovanni Dosi & Federico Riccio & Maria Enrica Virgillito, 2025. "The Environmental Smile Curve: Input-Output evidence on the Pollution Haven Hypothesis," LEM Papers Series 2025/35, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Duarte, Rosa & Espinosa-Gracia, Adrián & Jiménez, Sofía & Sánchez-Chóliz, Julio, 2022. "New insights on the relationship between the involvement of countries in global value chains, and intra- and inter-country inequalities," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 320-329.
    5. Kazem Biabany Khameneh & Reza Najarzadeh & Hassan Dargahi & Lotfali Agheli, 2021. "The Role of Global Value Chains in Carbon Intensity Convergence: A Spatial Econometrics Approach," Papers 2111.00566, arXiv.org.

    More about this item

    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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