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The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data

Gábor Márk Pellényi

No 62, European Economy - Economic Briefs from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper examines the role of Central Eastern European economies within global value chains. Occupation-level employment data are combined with an input-output model to analyse the types of jobs sustained by exporting industries. Based on its initial comparative advantage of low wages, the region remains specialised in fabrication tasks, which limits the domestic value added content of exports. Functional upgrading – the acquisition of more sophisticated service tasks within firms – could improve value capture, but it progressed slowly between 2011-2018. It could be boosted by raising the supply of high-skilled workers and improving local R&D and innovation capabilities.

Keywords: value chain; Central Eastern Europe; upgrading; value capture; input-output model; The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data; Pellényi (search for similar items in EconPapers)
JEL-codes: F16 F23 F66 J24 O11 O14 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2020-12
New Economics Papers: this item is included in nep-eec, nep-int, nep-tid and nep-tra
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Citations: View citations in EconPapers (1) Track citations by RSS feed

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