Global Value Chains and Vertical Specialization: The case of Portuguese Textiles and Shoes exports

Tiago Domingues ()
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Tiago Domingues: GEE

No 117, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: This paper evaluates the growing participation of the Portuguese economy, and especially of the textiles, leather, and shoes industry, in the so-called Global Value Chains (GVCs).We use the 2016 edition of the World Input-Output Database (WIOD) to empirical assess the changes in the geography of imports and exports of the Portuguese textiles, leather and shoes industry as well as quantify the growing vertical specialization in this sector. We also measure value added, import and employment coefficients for the Portuguese economy and the Portuguese textiles, leather, and shoes sector. The results show that Portuguese textiles, leather, and shoes trade have been more concentrated in Spain, Italy, India and China and less concentrated in Germany, France, and the United Kingdom. This sector is more relevant in the Portuguese economy than in any other Eurozone economy in terms of output, employment and value-added, and it has been recovering its relevance in the Portuguese economy since 2009.Textiles, leather, and shoes is the manufacturing industry with the higher potential to generate new jobs in Portugal. Despite the negative contribution of the financial crisis, vertical specialization of Portuguese textiles, leather, and shoes exports have been increasing ever since.

Keywords: Global value chains; Textiles, leather, and shoes; Input-Output models (search for similar items in EconPapers)
JEL-codes: C67 D57 E01 F14 L67 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2018-12, Revised 2019-01
New Economics Papers: this item is included in nep-geo, nep-int and nep-mac
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https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_117.pdf First version, 2019 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0117

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