IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v24y2024i2p180-202.html
   My bibliography  Save this article

Economic upgrading of Central and Eastern European economies through global value chain participation and foreign direct investment

Author

Listed:
  • Artur Klimek

    (Department of International Business, Wroclaw University of Economics and Business, Wrocław, Poland)

Abstract

This paper links global value chain (GVC) integration and operations of multinational enterprises (MNEs) in the context of host economies upgrading. Economic upgrading is referred to as higher exported value added that has been generated in the domestic economy as a result of foreign direct investment (FDI). Particular attention is paid to the impact of GVC on selected Central and Eastern European (CEE) economies. An econometric model is estimated using panel data of 44 sectors for four CEE economies over the period 1995–2018. A primary source of data is the latest edition of the TiVA (Trade in Value Added). The most important variable in explaining domestic contribution to GVC was the flow of foreign inputs. Backward linkages are crucial for building the GVC presence of the economies. The variables of interest – FDI stocks and flows – have in general a negative impact on the level of domestic content in analysed economies.

Suggested Citation

  • Artur Klimek, 2024. "Economic upgrading of Central and Eastern European economies through global value chain participation and foreign direct investment," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 24(2), pages 180-202.
    • Handle: RePEc:bic:journl:v:24:y:2024:i:2:p:180-202
    as

    Download full text from publisher

    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2024.2376503
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Global value chains; foreign direct investment; multinational enterprise; economic upgrading; trade in value added; international trade;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:24:y:2024:i:2:p:180-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.