The turning point of global value chain's Position: The case of emerging East Asian economies

Taguchi, Hiroyuki (2021): The turning point of global value chain's Position: The case of emerging East Asian economies. Published in: Economics Bulletin (2021): pp. 1826-1842.

Abstract

This paper aims to examine the dynamic process of participation in global value chains (GVCs) along with development stages in emerging East Asian economies by using the GVC indexes and the UNCTAD-Eora Global Value Chain Database. The main research focus of this study is to investigate a turning point of the GVC position from a downstream-driven participation to an upstream-driven one, which reflects an industrial upgrading from a buyer position for industrial inputs to a supplier position for them. The empirical estimation could verify the U-shaped curve in the combination between the GVC position index and per capita GDP, and identify a turning point of the GVC position in the reasonable range of per capita GDP. The estimation result also showed variability of the turning points in per capita GDP among the sectors: 3,668 US dollars in total industry, 6,088 US dollars in manufacturing sector, and 9,510 US dollars in machinery industry.

• Item Type: MPRA Paper
• Language: English
• Keywords: Global value chains (GVCs), Turning point, Emerging East Asian economies, GVC position index, U-shaped curve
• Subjects: F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East

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