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Global value chain linkages and domestic value-added content: Empirical evidence
Studies in Economics and Finance ( IF 2.3 ) Pub Date : 2021-07-26 , DOI: 10.1108/sef-09-2020-0383
Bhushan Praveen Jangam 1 , Badri Narayan Rath 1
Affiliation  

Purpose

This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015.

Design/methodology/approach

First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically.

Findings

First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income.

Practical implications

The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits.

Originality/value

This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.



中文翻译:

全球价值链联系和国内增值内容:经验证据

目的

本文旨在研究 2005-2015 年期间 58 个国家的小组中的全球价值链 (GVC) 和国内增值内容 (DVA) 之间的关系。

设计/方法/方法

首先,作者使用 Borin 和 Mancini (2019) 分解技术量化了 GVC 联系的精细度量。其次,作者运用可行的广义最小二乘法对 GVC 和 DVA 之间的关系进行了实证检验。

发现

首先,作者发现 GVC 链接对于增强 DVA 至关重要。其次,部门层面的研究表明,全球价值链与初级部门的联系提高了 DVA,同时降低了服务部门的 DVA。第三,作者发现只有上游活动才能提升增值内容。第四,作者注意到国家政策在调节与全球价值链相关的收益方面发挥的增强作用。最后,作者指出,当国家样本根据收入分组时,与全球价值链相关的结果是一致的。

实际影响

结果促使我们敦促政策制定者促进将商业活动更多地融入全球价值链,以从中获益。

原创性/价值

本文通过强调 GVC 活动类型和改善 DVA 的政策的重要性,有助于研究 GVC 对 DVA 的影响。

更新日期:2021-07-26
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