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Impact of Global Value Chains’ Participation on Employment in Turkey and Spillovers Effects

Author

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  • dine, Mohamedou Nasser

    (Osaka University)

Abstract

This study examines the impacts of the integration of Global Value Chains (GVCs) through backward and forward linkages on the employment in Turkey. This study is based on the world input–output data (WIOD) table of 2016. The study analyzes the trends of GVCs participation indicators from 2000 to 2014. It is observed that manufacturing sectors post faster growth through backward linkages, whereas service sectors through forward linkages. Using fixed effects estimation and controlling for the spillovers effects of GVCs indicators using a spatial weigh matrix approach, the study reveals that jobs creation depends not only on GVCs integration within the own sectors but also on the changes in GVCs participation in neighboring sectors, indicating significant spillovers effects across sectors. Moreover, employment in manufacturing benefits most from GVCs integration via backward linkages; however, employment declines with higher backward linkages in neighboring sectors. GVCs integration via forward linkages appears to displace labor in the service sectors.

Suggested Citation

  • dine, Mohamedou Nasser, 2019. "Impact of Global Value Chains’ Participation on Employment in Turkey and Spillovers Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 308-326.
    • Handle: RePEc:ris:integr:0772
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    Citations

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    Cited by:

    1. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
    2. Ahmet Sekerkaya & Feyza Nur Ozkan & Gozde Gusan Kose & Dogan Akarsu, 2020. "Consumer Reactions to Technological Attributes in Product Design: A Technology Acceptance Model Perspective," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(2), pages 151-176.
    3. Ping Hua, 2022. "Impacts of global value chains' participation and domestic consumption on manufacturing employment in China," Working Papers hal-03840490, HAL.
    4. Ndubuisi, Gideon & Owusu, Solomon, 2021. "Wage effects of global value chains participation and position: An industry-level analysis," MERIT Working Papers 2021-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Iliopoulos, Panagiotis (Takis), 2022. "A quantitative analysis of governance structures in the world economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 599(C).
    6. Halit Yanikkaya & Abdullah Altun & Pinar Tat, 2019. "Openness and Deindustrialization: A Turkish Case," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 33(2), pages 1-25.

    More about this item

    Keywords

    Backward linkages; Forward linkages; Employment;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor

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