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Global Value Chains, National Innovation Systems and Economic Development

Fagerberg, Jan LU ; Lundvall, Bengt Åke and Srholec, Martin LU (2018) In European Journal of Development Research 30(3). p.533-556
Abstract

The purpose of this paper is to examine the hypothesis that increased participation in global value chains (GVCs), such as assembly of imported parts for exports, leads to higher economic growth. The focus is particularly on the extent to which this holds for low-income countries, and the role that capability-building, i.e. development of the national innovation system, plays in the possibility of benefitting from GVCs. The analysis is based on evidence from 125 countries over the period 1997–2013. To analyse the issue, a comprehensive framework that allows for inclusion of a range of relevant factors, including GVC participation (measured by the foreign value added embodied in a country’s exports), is applied. The results suggest that... (More)

The purpose of this paper is to examine the hypothesis that increased participation in global value chains (GVCs), such as assembly of imported parts for exports, leads to higher economic growth. The focus is particularly on the extent to which this holds for low-income countries, and the role that capability-building, i.e. development of the national innovation system, plays in the possibility of benefitting from GVCs. The analysis is based on evidence from 125 countries over the period 1997–2013. To analyse the issue, a comprehensive framework that allows for inclusion of a range of relevant factors, including GVC participation (measured by the foreign value added embodied in a country’s exports), is applied. The results suggest that countries that increase GVC participation do not grow faster than other countries, when other relevant factors are controlled for. Small countries, and countries with low capabilities, appear to be particularly disadvantaged.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
capability, economic development, economic growth, global value chains, national innovation system
in
European Journal of Development Research
volume
30
issue
3
pages
533 - 556
publisher
SAGE Publications Inc.
external identifiers
  • scopus:85048528266
ISSN
0957-8811
DOI
10.1057/s41287-018-0147-2
language
English
LU publication?
yes
id
a7dec7b1-a4fe-4455-9e02-0ecd5c8e5757
date added to LUP
2018-06-28 14:25:09
date last changed
2019-08-14 04:19:10
@article{a7dec7b1-a4fe-4455-9e02-0ecd5c8e5757,
  abstract     = {<p>The purpose of this paper is to examine the hypothesis that increased participation in global value chains (GVCs), such as assembly of imported parts for exports, leads to higher economic growth. The focus is particularly on the extent to which this holds for low-income countries, and the role that capability-building, i.e. development of the national innovation system, plays in the possibility of benefitting from GVCs. The analysis is based on evidence from 125 countries over the period 1997–2013. To analyse the issue, a comprehensive framework that allows for inclusion of a range of relevant factors, including GVC participation (measured by the foreign value added embodied in a country’s exports), is applied. The results suggest that countries that increase GVC participation do not grow faster than other countries, when other relevant factors are controlled for. Small countries, and countries with low capabilities, appear to be particularly disadvantaged.</p>},
  author       = {Fagerberg, Jan and Lundvall, Bengt Åke and Srholec, Martin},
  issn         = {0957-8811},
  keyword      = {capability,economic development,economic growth,global value chains,national innovation system},
  language     = {eng},
  number       = {3},
  pages        = {533--556},
  publisher    = {SAGE Publications Inc.},
  series       = {European Journal of Development Research},
  title        = {Global Value Chains, National Innovation Systems and Economic Development},
  url          = {http://dx.doi.org/10.1057/s41287-018-0147-2},
  volume       = {30},
  year         = {2018},
}