Global value chains and structural transformation: Evidence from the developing world

Kumar Rohit

Structural Change and Economic Dynamics, 2023, vol. 66, issue C, 285-299

Abstract: Multiple studies on economic transition have argued that participation in Global Value Chains (GVCs) can facilitate the process of structural transformation in developing economies by reallocating labor from less productive to more productive sectors. However, there is a dearth of empirical work investigating the claim. We analyze forty countries from the regions of Asia, Africa, and Latin America over the period 1993–2015 to explore the relationship between GVC participation and structural transformation in developing economies. We do not find any significant association between participation in GVCs and structural transformation, as measured by the reallocation of labor towards sectors with higher productivity levels. Rather, we find some evidence that participation in GVCs might be associated with the increasing concentration of labor in sectors experiencing declining productivity growth and /or falling employment in sectors witnessing positive productivity growth, thus contributing towards hindering the process of successful structural transformation in developing economies.

Keywords: Global value chains; Structural transformation; Labor productivity decomposition (search for similar items in EconPapers)
JEL-codes: F14 F63 O14 O19 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X23000772
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:streco:v:66:y:2023:i:c:p:285-299

DOI: 10.1016/j.strueco.2023.05.006

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().