Conference Paper
Does Global Value Chain Participation Lead to Economic Upgrading?
No.
ERF30_106
Publisher
ERF
Date
March, 2024
Despite extensive research on Global Value Chains (GVCs), there remains a notable lack of empirical studies examining their impact on economic upgrading. Our study addresses this gap by investigating how different forms of GVC participation, namely backward and forward linkages, influence economic upgrading across several industries, including agriculture, fuels, minerals, and manufacturing. Our findings indicate that GVC participation plays a pivotal role in both product and process upgrading across industries. In agriculture, both forward and backward GVC participation significantly contribute to process and product upgrading, highlighting the dual benefits of GVC participation. In contrast, the fuels and minerals industries experience product upgrading through backward GVC participation. For the MENA region, while the fuels- minerals and manufacturing sectors exhibit product upgrading through both forward and backward GVC participation but they do not demonstrate an improvement in process upgrading. In the agriculture sector, both backward and forward GVC participation are instrumental in driving product and process upgrading by highlighting the comprehensive impact of GVC integration.
Authors
Hüseyin Alperen Özer
Research Assistant, Department of Economics, Gebze Technical...
Authors
Taner Turan
Professor in Economics, Gebze Technical University
Authors
Halit Yanikkaya
Professor, Department of Economics, Gebze Technical University,...