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Smile Curve and its linkages with Global Value Chains

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  • Aggarwal, Sakshi

Abstract

The concept and logic of ‘smile curve’ in the context of global value chains has gained importance in recent time period and discussed at the individual firm level, but rarely identified and investigated at the sectoral level using real data for cross-country analysis. Using TIVA database for 2001 and 2011 time period, several conceptual value chain are investigated including exports of Base Metals, Computer Electronics, Electrical Machinery and Transportation equipment’s in Asian Economies. This paper focuses an idea to measure both the strength and linkages between producers and consumers of global value chain. The identified smile curve provides a very intuitive understanding of the roles played by different countries in various sectors and helps in identifying the benefits gained by them through their participation in global trade. The dynamics of structural upgrading and interactive growth via trade and investment within a hierarchy of countries is aligned with “flying-geese (FG)” theory of growth. The paper also gives emphasis on the role of Regional Comprehensive Economic Partnership in broadening economic integration.

Suggested Citation

  • Aggarwal, Sakshi, 2017. "Smile Curve and its linkages with Global Value Chains," MPRA Paper 79324, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79324
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    File URL: https://mpra.ub.uni-muenchen.de/79324/1/MPRA_paper_79324.pdf
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    References listed on IDEAS

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    1. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
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    Cited by:

    1. Aggarwal, Sakshi, 2023. "LSTM based Anomaly Detection in Time Series for United States exports and imports," MPRA Paper 117149, University Library of Munich, Germany.
    2. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    3. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Position in global value chains and wages in Central and Eastern European countries," European Journal of Industrial Relations, , vol. 28(2), pages 211-230, June.
    4. Aggarwal, Sakshi, 2023. "Global assessment of climate change and trade on food security," MPRA Paper 117152, University Library of Munich, Germany.
    5. Aggarwal, Sakshi, 2023. "Machine Learning algorithms, perspectives, and real-world application: Empirical evidence from United States trade data," MPRA Paper 116579, University Library of Munich, Germany.
    6. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2023. "Once again “smile curve”: Is chain upgrading possible?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 62-88, February.

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    More about this item

    Keywords

    Economic Integration; Fragmentation; and Globalization;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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