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Global value chains and economic growth: A study of resilience during the COVID‐19 pandemic

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  • Bhushan Praveen Jangam
  • Hari Venkatesh
  • Aviral Kumar Tiwari

Abstract

This research examines the impact of trade related to global value chains (GVCs) and the COVID‐19 pandemic on economic growth. To achieve this, we analyse a panel of 60 countries spanning from 2007 to 2021. Various models are estimated using the system generalized method of moments technique. The primary findings are as follows: Firstly, GVC trade is identified as a positive and beneficial factor influencing economic growth. Secondly, the interaction between COVID and GVCs reveals that GVCs continue to have a positive impact on economic growth even during the pandemic. Lastly, consistent and comparable results are observed across different GVC components, sectors and country groups. These outcomes provide valuable insights for policymakers, emphasizing the importance of GVC trade in fostering economic growth.

Suggested Citation

  • Bhushan Praveen Jangam & Hari Venkatesh & Aviral Kumar Tiwari, 2024. "Global value chains and economic growth: A study of resilience during the COVID‐19 pandemic," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(4), pages 2096-2128, May.
    • Handle: RePEc:wly:jintdv:v:36:y:2024:i:4:p:2096-2128
    DOI: 10.1002/jid.3895
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