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Determinants of global value chain participation: cross-country analysis

Author

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  • Biswajit Banerjee

    (National Bank of Slovakia
    Ashoka University, Rajiv Gandhi Education City
    Research and Information System (RIS) for Developing Countries)

  • Juraj Zeman

    (National Bank of Slovakia)

Abstract

This paper examines the factors that influence the four most common measures of global value chain participation, separately for the sample of countries included in the World Input–Output Database and Trade in Value-Added database. For both samples, country size is an important driver of global value chain indicators. Participation in global value chains varies by industry groups and their technological classification. The influence is strongest for high-tech manufacturing, followed by high-tech services. Real exchange rate has a significant positive relationship with the domestic value added in gross exports ratio and forward linkage. The findings on the other covariates are sample sensitive.

Suggested Citation

  • Biswajit Banerjee & Juraj Zeman, 2022. "Determinants of global value chain participation: cross-country analysis," Indian Economic Review, Springer, vol. 57(1), pages 59-95, June.
    • Handle: RePEc:spr:inecre:v:57:y:2022:i:1:d:10.1007_s41775-022-00137-w
    DOI: 10.1007/s41775-022-00137-w
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    More about this item

    Keywords

    Global value chains; VAX ratio; Backward linkage; Forward linkage; GVC participation rate;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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