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Cross-country convergence in global value chains: Evidence from club convergence analysis

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  • Bhushan Praveen Jangam
  • Badri Narayan Rath

Abstract

We investigate the evidence of convergence/divergence in global value chain (GVC) participation across 61 countries from 2005 to 2015, employing the panel club convergence technique. The findings do not support evidence of absolute convergence, but evidence of club convergence. Seven clubs and a non-convergent group are identified, signifying that the types of activities are not uniform across countries, each club following a unique transition path. Further, we examine convergence in the forward and backward participation of GVCs. The findings reveal similar evidence of club convergence. Policies targeting GVCs need to consider the transition path of each club for better outcomes.

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  • Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.
    • Handle: RePEc:cii:cepiie:2020-q3-163-9
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    More about this item

    Keywords

    Global value chains; Forward linkage; Backward linkage; Club convergence;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

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