Conference Paper
Energy GVCs and Value-Added Growth: Evidence from EXIOBASE-3
No.
ERF_31_IE151
Publisher
ERF
Date
March, 2025
Topic
F. International Economics
In this study, we investigate the impact of energy GVC participation on value-added growth in 49 regions for the period of 1995 – 2022. Our findings reveal that backward GVC participation in crude oil, coal and natural gas leads to a decline in value-added growth for the full sample. In contrast, forward participation in total energy, coal, and crude oil significantly drives the value-added growth. Moreover, our results suggest that the value-added growth effects vary by income level and types of energy sources. While both backward and forward participation in coal has positive effects in developing countries, backward (forward) has a negative (positive) effect in developed countries. On the other hand, backward participation in natural gas exerts a negative (positive) effect in developing (developed) countries. Therefore, to capture the effects of energy GVC participation it is crucial to distinguish between backward and forward participation, income levels, and types of energy sources.
Authors
Taner Turan
Professor in Economics, Gebze Technical University
Authors
Halit Yanikkaya
Full Professor, Department of Economics, Gebze Technical...
Authors
Hüseyin Alperen Özer
Research Assistant, Department of Economics, Gebze Technical...