Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

Camara Kwasi Obeng, Peter Yeltulme Mwinlaaru () and Isaac Kwesi Ofori
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Peter Yeltulme Mwinlaaru: University of Cape Coast

A chapter in The Palgrave Handbook of Africa’s Economic Sectors, 2022, pp 815-840 from Springer

Abstract: Abstract Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth. Yet little attention has been paid to it in Sub-Saharan Africa (SSA). Motivated by this, we investigated the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991–2017, using the system GMM pooled estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though the region’s foreign value addition is less than its domestic value addition, the former’s impact on inclusive growth is higher. We recommend that policymakers of SSA countries should support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.

Keywords: Global value chain; Inclusive growth; Domestic value added; Foreign value added; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2022
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Related works:
Working Paper: Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa (2021)
Working Paper: Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa (2021)
Working Paper: Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa (2021)
Working Paper: Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa (2021)
Working Paper: Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa (2021)
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DOI: 10.1007/978-3-030-75556-0_32

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