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Tracing Value Added and Job Creation across Industries in the Slovak Republic

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  • Ďurčová, Júlia
  • Mirdala, Rajmund

Abstract

Increasing participation of the Slovak republic in the global value chains (GVCs) represents one of the key implications of the steadily growing position of important Slovak industries in both domestic and international terms. Slovak Republic is mainly positioned in the downstream activities of GVCs. However, his fact contributes to the relatively limited domestic value added creation. The aim of this article is to analyze whether the changes and the increasing participation of the Slovak republic in the GVCs influenced the position of important industries in term of value added creation and employment. We analyze the multipliers of production and value added using input-output model. The factors of skill structure of labor demand will be estimated using the system of cost share equations derived from translog cost function. The data covers period 2000-2014 and 1995-2009 for socio-economic analyses and come from World Input-Output Database (WIOD). The results for two analyzed industries show that their impact on total industrial production has decreased during the analyzed period. The results for employment analysis clearly revealed the differences between domestic and foreign orientated industry.

Suggested Citation

  • Ďurčová, Júlia & Mirdala, Rajmund, 2017. "Tracing Value Added and Job Creation across Industries in the Slovak Republic," MPRA Paper 82862, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82862
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    References listed on IDEAS

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    More about this item

    Keywords

    value added; employment; multipliers; GVCs; offshoring; labor demand; input-output model; translog cost function;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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