Global Value Chains, Trade and Technology: Evidence from European Countries. Issue 2 (30th June 2021)

• Record Type: Journal Article
• Authors: Guei, Kore Marc.
• Is Part Of: Journal of international logistics and trade. Volume 19:Issue 2(2021)
• Page Start: 83
• Page End: 94
• Publication Date: 2021-06-30
• Subjects: Global value chains -- Exports -- Innovation; International trade -- Periodicals; Business logistics -- Periodicals; Commerce international -- Périodiques; Logistique (Organisation) -- Périodiques; Business logistics; International trade; Periodicals; 382.05
• DOI: 10.24006/jilt.2021.19.2.083
• Languages: English
• ISSNs: 1738-2122

Abstract

Abstract : The paper investigates the effects of global value chains (GVCs) and technological innovation on exports. The paper builds a new dataset from two database, the EORA and the OECD stan database. Using a pooled OLS and a two-stage quantile regression technique on a sample of 8 OECD countries, the results suggest that the effects of GVCs participation are heterogeneous across countries. We find that at the aggregate level, GVCs and forward participation are negatively associated with exports growth. However, we only find evidence of a positive effect of backward participation on exports in the case of France and Germany. At the disaggregated level, we find that: (a) an increase in GVCs participation in low technology intensive sectors is positively associated with exports'growth; (b) an increase in GVCs participation in high technology intensive sector is negatively correlated with exports'growth. The findings stress the importance of GVCs as a driving channel for subdue economic growth in low technological sectors.