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Do global value chains create jobs?

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  • Thomas Farole

    (World Bank, USA)

Abstract

Global value chains (GVCs) describe the cross-national activities and inputs required to bring a product or service to the market. While they can boost exports and productivity, the resulting labor market impacts vary significantly across developing countries. Some experience large-scale manufacturing employment, while others see a shift in demand for labor from manufacturing to services, and from lower to higher skills. Several factors shape the way in which a country’s labor market will be impacted by GVC integration, including the type of sector, lead firms’ strategies, domestic skills base, and the institutional environment.

Suggested Citation

  • Thomas Farole, 2016. "Do global value chains create jobs?," IZA World of Labor, Institute of Labor Economics (IZA), pages 291-291, September.
  • Handle: RePEc:iza:izawol:journl:y:2016:n:291
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    References listed on IDEAS

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    Cited by:

    1. Jovanović, Miroslav N., 2019. "The Supply Chain Economy: How Far does it Spread in Space and Time?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(4), pages 393-452.
    2. Nicola Gagliardi & Benoît Mahy & François Rycx, 2018. "Upstreamness, social upgrading and gender: Equal benefits for all?," Working Paper Research 359, National Bank of Belgium.
    3. Dani Rodrik, 2018. "New Technologies, Global Value Chains, and Developing Economies," NBER Working Papers 25164, National Bureau of Economic Research, Inc.
    4. Gagliardi, Nicola & Mahy, Benoît & Rycx, Francois, 2019. "Upstreamness, Wages and Gender: Equal Benefits for All?," IZA Discussion Papers 12449, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    global value chains; GVCs; trade and investment; jobs; developing countries;

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization

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