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Up or down the value chain? The comparative analysis of the GVC position of the economies of the new EU member states

Jan Hagemejer and Mohammad Mahdi Ghodsi ()

No 2016-23, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: The pattern of trade of the Central and Eastern European countries has been changing since the beginning of the economic transition in the early 1990s. By the end of the century this process was additionally strengthened by their integration with the EU and overlapped with the development of global value chains (GVC) spanning across Europe with which the new member states (NMS) have become increasingly integrated. In this paper, we shed lights on these changes by analyzing the position of the NMS within the global value chains. We employ the upstreamness measure proposed by Antras et al. 2012 and use the World Input-Output Database. Although we observe a global increasing trend in the upstreamness of all countries, we find that the NMS have in many cases gone against this trend while converging in their production structure within their group and with the EU-15. This convergence is mostly present in Czech Republic, Hungary, Poland and Slovakia where the level of upstreamness in the most important exporting sectors was close to that of Germany by the end of the analyzed period 1995-2011.

Keywords: global value chains; upstreamness; European Union; New Member States (search for similar items in EconPapers)
JEL-codes: C67 F10 F15 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016
New Economics Papers: this item is included in nep-eec, nep-int, nep-sog and nep-tra
References: View references in EconPapers View complete reference list from CitEc
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Journal Article: Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States (2017) Downloads
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