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Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

Author

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  • Obeng, Camara Kwasi
  • Mwinlaaru, Peter Yeltulme
  • Ofori, Isaac Kwesi

Abstract

Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth yet little attention has been paid to it in sub-Saharan Africa (SSA). Motivated by the dearth of studies on SSA, we investigate the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991 to 2017, using the system GMM estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though SSA’s foreign value addition is less than its domestic value addition, the former’s impact on inclusive growth is higher than that of the latter. We recommend that policymakers support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.

Suggested Citation

  • Obeng, Camara Kwasi & Mwinlaaru, Peter Yeltulme & Ofori, Isaac Kwesi, 2021. "Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa," EconStor Preprints 233983, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:233983
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    Cited by:

    1. Ofori, Isaac K. & Asongu, Simplice A., 2022. "Repackaging FDI for Inclusive Growth: Nullifying Effects and Policy Relevant Thresholds of Governance," MPRA Paper 111359, University Library of Munich, Germany.
    2. Ofori, Isaac K. & Gbolonyo, Emmanuel & Ojong, Nathanael, 2022. "Towards Inclusive Green Growth in Africa: Critical energy efficiency synergies and governance thresholds," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 365, pages 1-48.
    3. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Ojong, Nathanael, 2023. "Foreign direct investment and inclusive green growth in Africa: Energy efficiency contingencies and thresholds," Energy Economics, Elsevier, vol. 117(C).
    4. Ofori, Isaac K. & Asonngu, Simplice A., 2021. "Foreign Direct Investment, Governance and Inclusive Growth in Sub-Saharan Africa," MPRA Paper 108178, University Library of Munich, Germany.
    5. Isaac K. Ofori & Pamela E. Ofori & Simplice A. Asongu, 2021. "Towards Efforts to Enhance Tax Revenue Mobilisation in Africa: Exploring Synergies between Industrialisation and ICTs," Research Africa Network Working Papers 21/058, Research Africa Network (RAN).
    6. Ofori, Isaac K. & Dossou, Marcel A.M. & Asongu, Simplice A. & Armah, Mark K., 2023. "Bridging Africa’s income inequality gap: How relevant is China’s outward FDI to Africa?," Economic Systems, Elsevier, vol. 47(1).
    7. Isaac K. Ofori & Mark K. Armah & Emmanuel E. Asmah, 2021. "Towards the Reversal of Poverty and Income Inequality Setbacks Due to COVID-19: The Role of Globalisation and Resource Allocation," Working Papers 21/043, European Xtramile Centre of African Studies (EXCAS).
    8. Soto, Gonzalo & Jardon, Carlos M. & Martinez-Cobas, Xavier, 2024. "FDI and income inequality in tax-haven countries: The relevance of tax pressure," Economic Systems, Elsevier, vol. 48(1).
    9. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Toyo Dossou, Marcel A. & Nkrumah, Richard K. & Nkansah, Emmanuel, 2023. "Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds," Journal of Multinational Financial Management, Elsevier, vol. 68(C).
    10. Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(7).
    11. Mumin, Yazeed Abdul & Ali, Williams, 2025. "Global value chains and income inequality in Africa," Sustainable Global Supply Chains Discussion Papers 8, Research Network Sustainable Global Supply Chains.
    12. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers 22/053, European Xtramile Centre of African Studies (EXCAS).
    13. Etensa, Tesfaye & Alemu, Tekie & Yayo, Mengesha, 2025. "Modeling energy prices and inclusive growth in Sub-Saharan Africa: Potential transmission pathways," Utilities Policy, Elsevier, vol. 97(C).
    14. Isaac K. Ofori & William G. Cantah & Benedict Afful & Saddam Hossain, 2022. "Towards shared prosperity in sub‐Saharan Africa: How does the effect of economic integration compare to social equity policies?," African Development Review, African Development Bank, vol. 34(1), pages 97-113, March.
    15. Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion, and financial development," Telecommunications Policy, Elsevier, vol. 46(7).
    16. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers of the African Governance and Development Institute. 22/053, African Governance and Development Institute..
    17. Pamela E. Ofori & Isaac K. Ofori & Simplice A. Asongu, 2022. "Towards efforts to enhance tax revenue mobilisation in Africa: Exploring the interaction between industrialisation and digital infrastructure," Working Papers of the African Governance and Development Institute. 22/045, African Governance and Development Institute..
    18. Isaac K. Ofori & Toyo A. M. Dossou & Simplice A. Asongu & Mark K. Armah, 2021. "Bridging Africa’s Income Inequality Gap: How Relevant Is China’s Outward FDI to Africa?," Working Papers of the African Governance and Development Institute. 21/098, African Governance and Development Institute..

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    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O00 - Economic Development, Innovation, Technological Change, and Growth - - General - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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