Looking into global value chains: influence of foreign services on export performance

Carmen Diaz-Mora, Rosario Gandoy and Belén González-Díaz
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Rosario Gandoy: Universidad De Castilla-La Mancha
Belén González-Díaz: Universidad De Castilla-La Mancha

Review of World Economics (Weltwirtschaftliches Archiv), 2018, vol. 154, issue 4, No 6, 785-814

Abstract: Abstract Using data from the OECD Inter-Country Input–Output database, we explore the impact of foreign services value added content of exports on export performance, specifically on duration of trade. Our data show that the share of foreign services content in manufacturing exports grows from 1995 to 2011, in a way similar to foreign goods content, and in contrast to the decreasing share of domestic services. Moreover, the share of foreign services value added content is larger for developing and emerging countries than for advanced countries. Our econometric findings confirm that foreign services value added embodied in manufacturing exports contribute positively to more resilient exports relationships, a positive effect which occurs for the three groups of manufacturing industries (high, medium and low technology industries) and, for each group, it is more pronounced for developing and emerging economies.

Keywords: Global value chains; Foreign services value added content; Export performance (search for similar items in EconPapers)
JEL-codes: F10 F14 F41 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (10)

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DOI: 10.1007/s10290-018-0326-4

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