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Looking into global value chains: influence of foreign services on export performance

Author

Listed:
  • Carmen Díaz-Mora

    (Universidad De Castilla-La Mancha)

  • Rosario Gandoy

    (Universidad De Castilla-La Mancha)

  • Belén González-Díaz

    (Universidad De Castilla-La Mancha)

Abstract

Using data from the OECD Inter-Country Input–Output database, we explore the impact of foreign services value added content of exports on export performance, specifically on duration of trade. Our data show that the share of foreign services content in manufacturing exports grows from 1995 to 2011, in a way similar to foreign goods content, and in contrast to the decreasing share of domestic services. Moreover, the share of foreign services value added content is larger for developing and emerging countries than for advanced countries. Our econometric findings confirm that foreign services value added embodied in manufacturing exports contribute positively to more resilient exports relationships, a positive effect which occurs for the three groups of manufacturing industries (high, medium and low technology industries) and, for each group, it is more pronounced for developing and emerging economies.

Suggested Citation

  • Carmen Díaz-Mora & Rosario Gandoy & Belén González-Díaz, 2018. "Looking into global value chains: influence of foreign services on export performance," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 785-814, November.
    • Handle: RePEc:spr:weltar:v:154:y:2018:i:4:d:10.1007_s10290-018-0326-4
    DOI: 10.1007/s10290-018-0326-4
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    More about this item

    Keywords

    Global value chains; Foreign services value added content; Export performance;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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