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Dynamic trade and technology linkages: a perspective from global value chain upgradation of Asian countries

Author

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  • Kashika Arora
  • Areej Aftab Siddique

Abstract

Purpose - The focus is on determining the long-term relationship in explaining how technological capabilities interact with trade and global value chain (GVC) participation to aid in the upgradation process using a panel auto-regressive distributed lag (ARDL) model. The results suggest that export of both low-skill and medium-skill technology-intensive manufactures and patents by residents positively and significantly impact GVC participation. Design/methodology/approach - This paper examines the dynamic linkages between GVC participation and technological capability of major Asian countries in a comparative (1995–2018) perspective. Findings - This implies that certain sectors enable greater integration into GVCs in the long-run, supported by critical learning variables. Further, with the help of the panel causality test, a bi-directional flow between GVC participation and export of high-technology manufactures and import of labour-intensive technology manufactures is witnessed. Even a one-way flow from research and development (R&D) intensity to GVC participation is seen. Originality/value - The technological capabilities are found to be characterising the initial structure of local enterprises in trade and GVCs, as well as the extent to which emerging-market firms may harness knowledge flows and migrate into high-tech industries.

Suggested Citation

  • Kashika Arora & Areej Aftab Siddique, 2022. "Dynamic trade and technology linkages: a perspective from global value chain upgradation of Asian countries," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 19(10), pages 3248-3271, December.
    • Handle: RePEc:eme:ijoemp:ijoem-11-2021-1723
    DOI: 10.1108/IJOEM-11-2021-1723
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    More about this item

    Keywords

    Panel ARDL; Asian countries; Technological capabilities; Global value chains; F14; O14; O19; O31;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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