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Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries

Aleksandra Kordalska () and Magdalena Olczyk

Structural Change and Economic Dynamics, 2021, vol. 58, issue C, 125-137

Abstract: The goal of the paper is to verify a causal relationship between forward linkages from domestic services to manufacturing and the participation/position of a country in global value chains (GVCs) in selected Central and Eastern European economies. We observed a strong polarisation pattern: the Baltic countries along with the Czech Republic strengthen their positions and participation in GVCs by having a strong relationship between the financial sector and manufacturing, while Poland, Hungary, and Slovakia have solid linkages between transportation services and manufacturing. We also discover that the reverse relationship is significant.

Keywords: CEE countries; forward linkages; GVCs; Granger causality; services (search for similar items in EconPapers)
JEL-codes: C22 C23 F14 L80 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1016/j.strueco.2021.05.003

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