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Asian Experiences with Global and Regional Value Chain Integration and Structural Change

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This research report investigates the relationship between the growing integration into global and regional value chains (VCs) and structural change in the South and South East Asian (SEA) region. The analysis includes a sample of 60 developed and developing countries covered in the OECD’s Inter-Country Input-Output Tables. Focusing on the SEA region, we find the usual inverted U-shaped relationship between the manufacturing share and per capita income. With regards to the impact of growing VC integration, the econometric results suggest a small positive effect of the overall VC integration on the change in the manufacturing share at the global level. Very similar patterns are found for the South and South East Asian region, however, with a large degree of country heterogeneity. The main beneficiaries from VC integration in the region in terms of the relative importance of manufacturing in the economy include for example Korea and Thailand. Unexpectedly, no significant differences in the (manufacturing-related) structural impacts of regional and global VCs could be identified.

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  • Roman Stöllinger, 2018. "Asian Experiences with Global and Regional Value Chain Integration and Structural Change," wiiw Research Reports 436, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:436
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    1. Marcel P. Timmer & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness [Who captures value in global supply chains?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 28(76), pages 613-661.
    2. repec:dgr:rugggd:gd-149 is not listed on IDEAS
    3. Syrquin, Moshe, 1988. "Patterns of structural change," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 7, pages 203-273, Elsevier.
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    1. Andrea Coveri & Claudio Cozza & Leopoldo Nascia & Antonello Zanfei, 2020. "Supply chain contagion and the role of industrial policy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(3), pages 467-482, September.

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    More about this item

    Keywords

    global value chains; structural change; competitiveness; economic development;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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