Global Value Chain and Total Factor Productivity in Africa

Ajide, Folorunsho M.

doi:10.15388/omee.2023.14.81

Cited by 2 publications

(1 citation statement)

References 72 publications

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“…Certain empirical studies have also provided evidence indicating that GVC participation can facilitate economic growth in developing countries. Ajide (2023) reports a significant positive correlation between GVC participation and total factor productivity in the context of African economies [39]. Piermartini and Rubínová (2019) indicate that GVC-related trade, as opposed to conventional trade, can promote knowledge spillovers and economic growth more effectively [40].…”

Section: Literature Reviewmentioning

confidence: 99%

Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities

Li,

He,

et al. 2023

Sustainability

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This study utilizes panel data drawn from 239 Chinese cities, and it employs fixed-effects models, mediation models, and spatial spillover models to reexamine the actual impact of the global value chain’s (GVC) participation on regional economic growth. The findings reveal that this impact exhibits a U-shaped nonlinear pattern, with the turning point of GVC occurring at 0.45, which is higher than that of 222 cities. Most cities are on the left side of the U-shaped curve, which corresponds with the second stage of the “in-out-in-again” GVC participation pattern (i.e., the “out” stage). During this stage, a decline in foreign value-added ratio (FVAR), with regard to exports (accompanied by an increase in the domestic value-added ratio), promotes economic growth. Innovation capability acts as a mediator in the relationship between GVC participation and economic growth. Furthermore, GVC participation has significant spillover effects on neighboring cities, with siphon and spillover effects coexisting. Thus, China should focus on establishing domestic value chains and innovation systems, achieving relative independence from existing GVCs dominated by developed countries, enhancing indigenous innovation capabilities, and laying the foundation for the third stage (in-again) of reintegration into GVCs, at the high value-added end, to achieve a higher level of openness. This study explores the nonlinear impact of GVC participation on regional economic growth in China from both theoretical and empirical perspectives, focusing on the finest divisions that remain feasible—cities. This approach expands and supplements the relevant field of research in valuable ways, yielding more realistic research conclusions and policy recommendations.

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Section: Literature Reviewmentioning

confidence: 99%

Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities

Li,

He,

et al. 2023

Sustainability

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Morocco’s Economic Prospects: A Dynamic ARDL Simulation on Global Value Chain Integration

Moussir

2024

Economics

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This paper examines how Morocco’s integration into global value chains (GVCs) impacts its economic development, addressing a critical gap in the literature on developing economies. While GVCs have transformed international trade over the past two decades and created new industrialisation opportunities, their developmental impact varies significantly across countries. Building on previous research, our study fills a significant gap by conducting a comprehensive analysis of Morocco’s GVC participation using a dynamic autoregressive distributed lag (ARDL) simulation methodology from 1990 to 2018, examining the relationship between various GVC integration measures and GDP per capita. The empirical analysis reveals three key findings : backward linkages through foreign value added in exports drive long-term economic development ; domestic value added in exports generates significant positive long-run growth effects ; and forward linkages through indirect value added in exports produce both short-run and long-run economic benefits. These results demonstrate that Morocco’s strategic GVC integration has been fundamental to its economic development. In light of these findings, policy implications are drawn to enhance Morocco’s global competitiveness and optimize development benefits through targeted GVC participation strategies. The research emphasizes how balanced integration across different value chain linkages promotes sustainable economic growth in developing countries.

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Global Value Chain and Total Factor Productivity in Africa

Cited by 2 publications

References 72 publications

Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities

Reexamining the Impact of Global Value Chain Participation on Regional Economic Growth: New Evidence Based on a Nonlinear Model and Spatial Spillover Effects with Panel Data from Chinese Cities

Morocco’s Economic Prospects: A Dynamic ARDL Simulation on Global Value Chain Integration

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