Gross Exports Versus Value-Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries

Abstract

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Does trade in services improve African participation in global value chains?

“…Recent studies have further extended this initial model (Allard et al, 2016; Amador & Cabral, 2014; Guilhoto et al, 2015; Kowalski & Lopez‐Gonzalez, 2016; Olczyk & Kordalska, 2017; Yücer et al, 2014). From these extensions and based on the graphical analyses, we assume three different linear empirical models, one for the global participation model (Equation 2), one for upstream participation in a GVC (Equation 3) and one for downstream participation in the GVC (Equation 4).…”

“…Recent researches add supplementary explanatory variables (Allard et al, 2016; Amador & Cabral, 2014; Guilhoto et al, 2015; Kowalski & Lopez‐Gonzalez, 2016; Olczyk & Kordalska, 2017; Yücer et al, 2014) like the level of industrialization measured by industrial value‐added as a percentage of GDP ( INDUSVA it ), market size captured by population ( POPULATION it ), and technology measured here by internet access ( INTERNET it ). The effects of those variables are supposed to be positive whatever the position within the value chain.…”

“…The coordination factor assesses the effect of the social and political environment on countries’ participation in GVCs. Conversely to Olczyk and Kordalska (2017) who consider only government efficiency, we compute a synthetic index ( GOVSCORE it ) using the principal component analysis (PCA) on the six indicators of Kraay et al (WGI, 2018).…”

The CEECs in global value chains: The role of Germany

“…CEECs' exports to Germany and of their imports from Germany indicate different positions of the CEECs on the one hand and of Germany on the other hand in GVCs. Olczyk -Kordalska (2017) showed that the CEECs "do not occupy a favourable position in GVCs. Probably, they are positioned in the middle part of the GVCs".…”

“…The pre-production (product concept, design, R&D) and post-production (sales and marketing, aftersales services) stages create relatively considerable value added. Olczyk -Kordalska (2017) discovered also that during 1995-2011 the CEECs "were not able to go up into the higher stages of GVCs in which more value is generated". However, certain authors note that some sectors, e.g.…”