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A Journey Toward Global Value Chain Upgrading: Exploring the Transition from Backward to Forward Integration

Nebojsa Stojcic and Matija Matić ()
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Matija Matić: Faculty of Economics and Business, University of Zagreb

No 2308, EFZG Working Papers Series from Faculty of Economics and Business, University of Zagreb

Abstract: Global value chains (GVCs) are embraced worldwide as a gateway to technological and economic upgrading. Countries integrate into backward, value-importing linkages with the aim of accumulating technological capabilities and transitioning towards creating their own forward, value-exporting chains and capturing a greater share of the value generated within GVCs. Existing knowledge, which is largely fragmented and descriptive, points to a number of uncertainties and complexities that make this process anything but linear. It is open question whether the deepening backward linkages facilitates forward integration in GVCs. Using data from 65 countries over two decades, we show that the impact of backward integration on forward integration in GVCs varies over time and that it is moderated by the level of development of the country, the diversity of the GVC partner network and the innovation conditions in the home market. The research adds a new perspective to the literature on GVC-driven upgrading.

Keywords: global value chain; upgrading; backward and forward integration (search for similar items in EconPapers)
JEL-codes: F14 F6 O3 (search for similar items in EconPapers)
Pages: 43
Date: 2023-12-11
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http://web.efzg.hr/repec/pdf/Clanak%2023-08.pdf First version, 2023 (application/pdf)

Related works:
Journal Article: A journey toward global value chain upgrading: Exploring the transition from backward to forward integration (2024) Downloads
Working Paper: A journey toward global value chain upgrading: Exploring the transition from backward to forward integration (2023) Downloads
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