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Exports and growth in the New Member States. The role of global value chains

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  • Jan Hagemejer

    (Faculty of Economic Sciences, University of Warsaw; Economic Institute, National Bank of Poland)

Abstract

We analyze the determinants of value added and productivity growth of New Member States in the period between 1995 and 2009. We show that in the analyzed countries exports contributed to between 30 to over 40% of the overall growth of GDP while the contribution of the domestic component varied from negative to over 60%. We show that in the most important export manufacturing industries of the NMS, the growth in exported value added was substantial, while the growth of the domestic component of GDP was mostly due to the growth in services. We associate growth of sectoral productivity with the foreign direct investment and exporting but, more importantly, with the position of a sector/country in the global value chains. We show that sectors that have imported intermediate goods have experienced higher productivity growth. Moreover, productivity growth was found in sectors further away from the final demand and in sectors exporting intermediate goods.

Suggested Citation

  • Jan Hagemejer, 2016. "Exports and growth in the New Member States. The role of global value chains," Working Papers 2016-24, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2016-24
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    Cited by:

    1. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2019. "Position In Global Value Chains:The Impact On Wages In Central And Eastern European Countries," GUT FME Working Paper Series A 53, Faculty of Management and Economics, Gdansk University of Technology, revised Dec 2019.
    2. Piotr Szpunar & Jan Hagemejer, 2018. "Globalisation and the Polish economy: macro and micro growth effects," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and deglobalisation, volume 100, pages 273-289, Bank for International Settlements.
    3. Andrzej Cieslik & Jan Jakub Michalek & Krzysztof Szczygielski, 2019. "What matters for firms’ participation in Global Value Chains in Central and East European countries?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(3), pages 481-502, September.

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    More about this item

    Keywords

    global value chains; productivity; economic growth; openness;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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