Jobs and Productivity Growth in Global Value Chains: New Evidence for Twenty-five Low- and Middle-Income Countries

Pahl, Stefan; Timmer, Marcel P.; Gouma, Reitze; Woltjer, Pieter

doi:10.1093/wber/lhac003

Cited by 9 publications

(3 citation statements)

References 41 publications

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“…Some scholars believe that GVC participation widens the income gap [11]. Pahl et al indicate that the productivity of firms participating in GVC production is higher than that of non-participating firms, and, therefore, workers' wages are higher in firms participating in GVC production [12]. Meanwhile, Han et al argue that regions more affected by globalization have experienced greater changes in wage inequality than regions less affected by globalization [13].…”

Section: Introductionmentioning

confidence: 99%

Global Value Chain Participation, Employment Structure, and Urban–Rural Income Gap in the Context of Sustainable Development

Liu,

Tang,

Zhao

2024

Sustainability

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Currently, the trend of globalization is evident, and global value chain participation has had a significant impact on the urban–rural income gap in China. This article takes sustainable development as the background and constructs a theoretical mechanism for the impact of global value chain participation on the urban–rural income gap and uses a two-way fixed effects model to empirically test data from 30 provinces in China from 2005 to 2014. Research finds that global value chain participation significantly widens the urban–rural income gap. Compared to the central and western regions, the participation of the eastern region in the global value chain has a more significant effect on widening the urban–rural income gap. Further research has found that employment structure plays a partial mediating role in the process of global value chain participation in widening the urban–rural income gap. The factor endowment structure and industrial structure upgrading can significantly strengthen the mechanism of global value chain participation in optimizing the employment structure. This article’s research findings have significant practical implications for reducing the income gap between urban and rural areas and fostering sustainable development in both.

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Section: Introductionmentioning

confidence: 99%

Global Value Chain Participation, Employment Structure, and Urban–Rural Income Gap in the Context of Sustainable Development

Liu,

Tang,

Zhao

2024

Sustainability

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“…The benefits of participation in GVCs by developing countries have been well emphasized in the literature (e.g., Ignatenko et al, 2019;World Bank, 2020). For example, GVC participation positively affects labour productivity in low-income countries (e.g., [12]); fosters economic upgrading, including through greater developing countries productivity growth in the formal manufacturing sector (e.g., [13,14]); promotes social upgrading (e.g., [15]); contributes to lower within-country income inequality (e.g., [16,17]); promotes economic growth (e.g., [9,18]); reduces poverty (e.g., [18][19][20]); and can be beneficial for the acceptability, developability, and sustainability of the energy system (e.g., [21]).…”

Section: Introductionmentioning

confidence: 99%

Trade-Related Government Expenditure and Developing Countries’ Participation in Global Value Chains

Gnangnon

2023

Commodities

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The effect of trade-related government expenditure on backward and forward participation in global value chains (GVCs) is at the heart of the present analysis. The latter builds on an unbalanced panel dataset of 74 developing countries over the annual period from 2005 to 2018. It has used several estimators, the primary one being the Quantile via Moments approach. The outcomes suggest that trade-related government expenditure exerts no significant effect on countries’ forward participation in GVCs. At the same time, countries located in the 20th to 90th quantiles experience a positive and significant effect of trade-related government expenditure on backward participation in GVCs, with the magnitude of this positive effect being larger for countries in the upper quantiles than for countries in the lower quantiles. The least integrated countries into the backward participation in GVCs (i.e., those in the 10th quantile) experience no significant effect of trade-related government expenditure on backward participation in GVCs. Interestingly, expenditure in favour of developing economic infrastructure, and expenditure for enhancing productive capacities reinforce each other in positively affecting backward GVC participation by countries located in the upper quantiles (i.e., the 50th to 90th quantiles). However, the interaction between these two types of trade-related government expenditure does not influence countries’ forward participation in GVCs. These findings shed light on the importance of trade-related expenditure for enhancing developing countries’ participation in backward GVCs.

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“…Pahl et al, (2022), looked at jobs and productivity growth in GVCs and found GVC jobs to be more productive than non GVC jobs. Further, the study established that GVC jobs have a smaller share in the total Labour force, especially for low income countries and that expansions in GVCs is correlate with labor proactivity in a positively.…”

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confidence: 99%

Viewpoints in Global Value Chains: Evidence from Sub-Saharan Africa

Bosire

2023

IJEFI

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The aim of this paper is interrogate various perspective such as Investments, Infrastructure, Governance and Macroeconomic factors and how they influence global value chains in sub Saharan Africa. Data was derived from 37 sub Saharan Africa countries for the period 2003 to 2018. Panel corrected Standard Errors estimation model was adopted in analysis. Both the direct relationships and controlled relationships were tested. Macro-economic factors such as GDP growth rate, exchange rate, inflation rate and Interest rates were used as controlling factors. The paper established a significant influence of Investments on Global value chains and that it can explain up to 45 per cent of the variation. Similarly, infrastructure has a significant influence on global value chains in sub Saharan Africa and that it can explain up to 67 per cent of the variations. Governance also has a significant influence on global value chains and it can explain up to 10 per cent of the variations. The overall model was significant with a 76 per cent explanation of the variation in global value chains in sub Saharan Africa. Therefore, the paper recommends for a promotion of value added manufacturing, and an integration in global value chains. Further, the paper recommends for enhanced resource allocation to infrastructure development to aid in the reduction of the production cost and to stream line governance.

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Jobs and Productivity Growth in Global Value Chains: New Evidence for Twenty-five Low- and Middle-Income Countries

Cited by 9 publications

References 41 publications

Global Value Chain Participation, Employment Structure, and Urban–Rural Income Gap in the Context of Sustainable Development

Global Value Chain Participation, Employment Structure, and Urban–Rural Income Gap in the Context of Sustainable Development

Trade-Related Government Expenditure and Developing Countries’ Participation in Global Value Chains

Viewpoints in Global Value Chains: Evidence from Sub-Saharan Africa

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