Trade and Growth in the New Member States: The Role of Global Value Chains

Jan Hagemejer

Emerging Markets Finance and Trade, 2018, vol. 54, issue 11, 2630-2649

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 roughly 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, faster productivity growth was found in sectors further away from the final demand and in sectors exporting intermediate goods.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2017.1369878 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Exports and growth in the New Member States. The role of global value chains (2016)
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:mes:emfitr:v:54:y:2018:i:11:p:2630-2649

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2017.1369878

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().