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Korea's Participation in Global Value Chains: Measures and Implications

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  • Chung, Sung Hoon

Abstract

This paper measures the extent to which South Korea participated in global value chains (GVCs) from 1995 through 2011 and scrutinizes the consequences of such participation on the Korean economy. To this end, the World Input Output Database is utilized to calculate GVC income, GVC employment, and value-added exports created by Korean and foreign industries. Our findings show that Korea radically internationalized its production activities during the sample period, widening the gap between gross exports and value-added exports. We also document that Korea's participation in GVCs has changed the value-added and employment structures in domestic industries in accordance with their comparative advantages while exacerbating the degree of wage inequality.

Suggested Citation

  • Chung, Sung Hoon, 2016. "Korea's Participation in Global Value Chains: Measures and Implications," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 38(4), pages 45-76.
    • Handle: RePEc:zbw:kdijep:200798
    DOI: 10.23895/kdijep.2016.38.4.45
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    References listed on IDEAS

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    More about this item

    Keywords

    Global Value Chain; GVC; Trade in Value Added; GVC Income; GVC Employment; International Fragmentation of Production;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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