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The Employment Effects of Global Value Chains

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  • Shuzhong Ma
  • Yinfeng Liang
  • Hongsheng Zhang

Abstract

Due to advances of information, communication, and technology and reductions in trade barriers, countries are increasingly deeply engaged in global value chains (GVCs). In the article, we theoretically and empirically show that a country’s position in GVCs has significantly positive effects on its employment level and structure. Countries located in a higher position in GVCs induce a larger demand for high-skilled labors and a more perfect employment structure. Empirical results further reveal that the position in GVCs will help improve employment structure in both developed countries and developing countries, and the employment effects of GVCs are statistically larger for capital-intensive industries than for labor-intensive industries. Moreover, by distinguishing international and domestic division of labor, we find that the employment effects of domestic value chains are larger than foreign value chains.

Suggested Citation

  • 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.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:10:p:2230-2253
    DOI: 10.1080/1540496X.2018.1520698
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    Citations

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    Cited by:

    1. 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.
    2. Xuefeng Qian & Kalsoom Rafique & Yingna Wu, 2020. "Flying with the Dragon: Estimating Developing Countries’ Gains from China's Imports," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 1-25, September.
    3. Ping Hua, 2022. "Impacts of global value chains' participation and domestic consumption on manufacturing employment in China," Working Papers hal-03840490, HAL.
    4. Rudi Purwono & Unggul Heriqbaldi & Miguel Angel Esquivias & M. Khoerul Mubin, 2022. "The American–China Trade War and Spillover Effects on Value-Added Exports from Indonesia," Sustainability, MDPI, vol. 14(5), pages 1-22, March.
    5. 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).
    6. Basudeb Guha-Khasnobis & Anwesha Aditya & Suvir Chandna, 2023. "Employment and global value chain participation: the Indian experience," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 75-94, February.
    7. Sabina Szymczak, 2023. "Systematic literature review: theory on GVCs' impact on wages, employment, and productivity," GUT FME Working Paper Series A 71, Faculty of Management and Economics, Gdansk University of Technology.
    8. repec:cdl:itsrrp:qt7mq674vr is not listed on IDEAS
    9. Yue Mingyang & Yuan Hankun & Xu Chen & Jin Zhida, 2023. "The impact of trade on employment: New evidence from a global value chains perspective," PLOS ONE, Public Library of Science, vol. 18(9), pages 1-14, September.
    10. Fatma Aly & Chahir Zaki, 2025. "On deep trade agreements, institutions, and global value chains: evidence from Egypt," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 49-87, February.
    11. John Brownstein & Jonathan H. Cantor & Benjamin Rader & Kosali I. Simon & Christopher M. Whaley, 2022. "If You Build it, Will They Vaccinate? The Impact of COVID-19 Vaccine Sites on Vaccination Rates and Outcomes," NBER Working Papers 30429, National Bureau of Economic Research, Inc.
    12. Sabina Szymczak, 2024. "The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-25, December.
    13. Ximena del Carpio & José A. Cuesta & Maurice D. Kugler & Gustavo Hernández & Gabriel Piraquive, 2022. "What Effects Could Global Value Chain and Digital Infrastructure Development Policies Have on Poverty and Inequality after COVID-19?," JRFM, MDPI, vol. 15(2), pages 1-29, January.
    14. Jeffrey Kouton & Sulpice Amonle, 2021. "Global value chains, labor productivity, and inclusive growth in Africa: empirical evidence from heterogeneous panel methods," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(1), pages 1-23, June.

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