Servicification in global value chains toward post-COVID-19 era in emerging and developing Asian economies

Hiroyuki Taguchi ()

MPRA Paper from University Library of Munich, Germany

Abstract: Servicification in global value chains (GVCs) in emerging and developing Asian economies has become a trend recently. However, there have been no scientific studies to elucidate the mechanism of servicification in GVCs. To fill this missing gap, this study aims at investigating the involvement of service sectors into GVCs in Asian economies in terms of the quantitative interactions between service inputs and manufacturing exports and inputs and between service inputs and service exports. For this purpose, a panel vector -autoregressive model and the Trade in Value Added (TiVA 2023) database of the Organization for Economic Cooperation and Development (OECD) are used for the empirical analysis during 1995-2020. The estimation results find that, first, there exist reciprocal interactions between the business services and manufacturing sectors; foreign business service inputs are induced by manufacturing exports, whereas manufacturing inputs are induced by business service exports. Second, foreign manufacturing inputs facilitate foreign business service inputs. Third, business service inputs are promoted by business service exports. These trends in the involvement of business services’ involvement in GVCs have accelerated from the mid-2000s and are expected to expand toward the post-COVID-19 era. To enhance role of services in GVCs, Asian economies should facilitate the removal of explicit restrictions in service trade and address regulatory divergence across countries.

Keywords: servicification; global value chains; emerging and developing Asian economies (search for similar items in EconPapers)
JEL-codes: F14 O53 (search for similar items in EconPapers)
Date: 2024-05
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/121004/1/MPRA_paper_121004.pdf original version (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:pra:mprapa:121004

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().