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Global value chain participation and economic growth in Africa

Author

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  • Ibrahim Nana
  • Martin Paul Jr Tabe-Ojong

Abstract

Global value chains offer countries unique opportunities to participate in and benefit from international trade by specializing in specific production stages and tasks. This study investigates the evolution in the participation of African countries in global value chains and assesses the impact of global value chain participation on economic growth over the period 1990–2022. Using the EORA Multi-Region Input-Output tables, it tracks the evolution of global value chains, identifies specialization patterns, and generates sector/task global value chain participation measures. Employing both instrumental variable and local projection methods, the study further examines the relationship between global value chains and economic growth, providing evidence on the sectors that drive this relationship. The findings suggest that African countries’ participation in global value chains is positively associated with their economic growth. This positive association is primarily driven by trade in knowledge-intensive services, labour intensive goods and commodities. These results suggest that participating actively in global value chains could serve as a crucial entry point for fostering economic growth in African countries.

Suggested Citation

  • Ibrahim Nana & Martin Paul Jr Tabe-Ojong, 2026. "Global value chain participation and economic growth in Africa," Applied Economics, Taylor & Francis Journals, vol. 58(9), pages 1670-1689, February.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:9:p:1670-1689
    DOI: 10.1080/00036846.2025.2470439
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