Domestic Share of Value-Added and the Development of Production Capabilities of Local Firms within Global Value Chains

Woocheol Lee ()
Additional contact information
Woocheol Lee: RMIT University, Vietnam

Journal of Economic Development, 2022, vol. 47, issue 2, 81-99

Abstract: It is controversial whether the increase in the share of value-added created by developing economies has resulted from the upgrade of their production capabilities. This paper, using the trade data of Vietnam, estimates the weighted sectoral income elasticities of demand for exports over the period 1997-2017 and collates the weighted sectoral domestic share of value-added over the period 2005-2015. This paper finds the following. Firstly, the rise of exports demand in high value-added sectors happened. Secondly, the aggregate domestic share of value-added continued to decrease in Vietnam. Finally, the weighted domestic share of value-added the high-tech and the mid-tech sector grew at a slower speed than the weighted foreign value-added. The findings suggest that engaging in global value chains has not led to the upgrade of production capabilities of local Vietnamese firms. Classification-JEL:

Keywords: Domestic Share of Value-Added; Trade in Value-Added; Global Value Chains; Upgrade of Production Capabilities; Vietnam (search for similar items in EconPapers)
JEL-codes: F14 F64 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://jed.cau.ac.kr/archives/47-2/47-2-5.pdf Full text (application/pdf)

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:ris:jecdev:0018

Access Statistics for this article

Journal of Economic Development is currently edited by Sung Y. Park

More articles in Journal of Economic Development from The Economic Research Institute, Chung-Ang University Room 1040, Building 310, Chung-Ang University, 84 Heukseok-ro, Dongjak-gu, Seoul 06974, South Korea. Contact information at EDIRC.
Bibliographic data for series maintained by Tram Nguyen ().