Dynamic trade and technology linkages: a perspective from global value chain upgradation of Asian countries

Kashika Arora and Areej Aftab Siddique

International Journal of Emerging Markets, 2022, vol. 19, issue 10, 3248-3271

Abstract: Purpose - The focus is on determining the long-term relationship in explaining how technological capabilities interact with trade and global value chain (GVC) participation to aid in the upgradation process using a panel auto-regressive distributed lag (ARDL) model. The results suggest that export of both low-skill and medium-skill technology-intensive manufactures and patents by residents positively and significantly impact GVC participation. Design/methodology/approach - This paper examines the dynamic linkages between GVC participation and technological capability of major Asian countries in a comparative (1995–2018) perspective. Findings - This implies that certain sectors enable greater integration into GVCs in the long-run, supported by critical learning variables. Further, with the help of the panel causality test, a bi-directional flow between GVC participation and export of high-technology manufactures and import of labour-intensive technology manufactures is witnessed. Even a one-way flow from research and development (R&D) intensity to GVC participation is seen. Originality/value - The technological capabilities are found to be characterising the initial structure of local enterprises in trade and GVCs, as well as the extent to which emerging-market firms may harness knowledge flows and migrate into high-tech industries.

Keywords: Panel ARDL; Asian countries; Technological capabilities; Global value chains; F14; O14; O19; O31 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-11-2021-1723

DOI: 10.1108/IJOEM-11-2021-1723

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