EconPapers    
Economics at your fingertips  
 

The impact of global value chain participation on income inequality

Nur Carpa and Inmaculada Martínez-Zarzoso

International Economics, 2022, vol. 169, issue C, 269-290

Abstract: There is a considerable amount of discussion over the effect of global value chain (GVC) participation on the increasing levels of income inequality in developed and developing countries. This paper aims to contribute to a better understanding of the interlink between income inequality and GVC participation. For this purpose, a panel data analysis is conducted with recent GVC data from the UNCTAD-Eora database. The results from panel data estimations for a sample of 39 countries over the period 1995–2016 suggest that offshoring has a significant inequality reducing effect for developing economies in the long run. Although the estimation results also indicate that some negative distributional effects of GVC related trade emerge in the short run, these seem to be mainly short run reactions of the economy, which might be offset in the long run through the adjustment of the labor market towards a new long run equilibrium.

Keywords: Global Value Chain; Offshoring; Inequality; Gini; Correlated random effects; Eora (search for similar items in EconPapers)
JEL-codes: C33 D63 F12 F14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701722000105
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:169:y:2022:i:c:p:269-290

DOI: 10.1016/j.inteco.2022.02.002

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-08-07
Handle: RePEc:eee:inteco:v:169:y:2022:i:c:p:269-290