 Dynamic Impacts of Global Value Chains Participation on Asian Developing EconomiesForeign Trade Review, 2014, vol. 49, issue 4, 313-326 Abstract: This article aims to investigate the dynamic economic impacts of global value chains (hereafter GVCs) participation by examining value-added-trade patterns focusing on Asian developing countries. Our main findings were as follows. First, an economy’s participation in GVCs in manufacturing sectors has allowed an absolute domestic value added for exports to contribute to GDP growth. Second, the development paths of domestic value added contribution to exports in a GVCs participating economy have followed ‘smile curve’ with the bottom being 5,651 US dollars in per capita GDP. Third, the turning points of smile curves differed according to manufacturing sectors: the sectors of machinery, electrical and transport equipment reach the turning point at higher per capita GDP than those of food, textile and wood products. These observations imply the dynamic process of GVCs impacts, where the initial stage of GVCs participation has reduced domestic value added contribution to exports, but it has been recovered at a later stage of GVCs involvement with upgrading domestic productive capacities. In particular, this recovery has taken a longer time for such high-value sectors as machinery, electrical and transport equipment. Keywords: Global value chains; Asian developing economies; value added trade; manufacturing sectors; development paths; smile curve (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:fortra:v:49:y:2014:i:4:p:313-326 Access Statistics for this article More articles in Foreign Trade Review |
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