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

Jan Hagemejer

No 2016-24, Working Papers from Faculty of Economic Sciences, University of Warsaw

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.

Keywords: global value chains; productivity; economic growth; openness (search for similar items in EconPapers)
JEL-codes: C23 F21 O33 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016
New Economics Papers: this item is included in nep-eec, nep-int, nep-tid and nep-tra
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http://www.wne.uw.edu.pl/index.php/download_file/2961/ First version, 2016 (application/pdf)

Related works:
Journal Article: Trade and Growth in the New Member States: The Role of Global Value Chains (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2016-24

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