EconPapers    
Economics at your fingertips  
 

Determinants of Global Value Chain Participation: Cross-country Analysis

Biswajit Banerjee () and Juraj Zeman ()
Additional contact information
Biswajit Banerjee: Narodna banka Slovenska, Bratislava, Slovakia
Juraj Zeman: Narodna banka Slovenska, Bratislava, Slovakia

No WP 1/2020, Working and Discussion Papers from Research Department, National Bank of Slovakia

Abstract: This paper examines the factors that influence the five most common measures of GVC participation for the sample of countries included in the World Input Output Database (WIOD). For this sample, backward linkage is stronger than forward linkage and is the main channel for integration into GVCs. Also, a stronger backward linkage is associated with a relatively more downstream position in GVCs. Country size and openness to inward FDI are important determinants of GVC indicators. Of all the industry groupings, the influence on all the GVC indicators is strongest for high-tech manufacturing. In both manufacturing and services, the higher is the share of the high-tech categories the greater is the backward linkage and GVC participation rate, and the GVC position is relatively more downstream. The real exchange rate is positively associated with the share of domestic value added in gross exports (VAX ratio), which is a manifestation of the exchange rate elasticity of value-added exports being smaller than the exchange rate elasticity of gross exports.

Keywords: Global value chains; VAX ratio; Backward linkage; Forward linkage; GVC participation rate; GVC position index (search for similar items in EconPapers)
JEL-codes: F02 F14 F23 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020-01
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.nbs.sk/_img/Documents/PUBLIK/WP_1_2020 ... inants_of_GVC_EN.pdf (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:svk:wpaper:1069

Access Statistics for this paper

More papers in Working and Discussion Papers from Research Department, National Bank of Slovakia Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-04-11
Handle: RePEc:svk:wpaper:1069