We analyze the determinants of value added and productivity growth of New Member States in the period between 1995 and 2009. We show that in the analyzed countries exports contributed to roughly 30 to over 40% of the overall growth of GDP while the contribution of the domestic component varied from negative to over 60%. We show that in the most important export manufacturing industries of the NMS, the growth in exported value added was substantial, while the growth of the domestic component of GDP was mostly due to the growth in services. We associate growth of sectoral productivity with the foreign direct investment and exporting but, more importantly, with the position of a sector/country in the global value chains. We show that sectors that have imported intermediate goods have experienced higher productivity growth. Moreover, productivity growth was found in sectors further away from the final demand and in sectors exporting intermediate goods.
- This paper uses the WIOD data together with the accompanying Social and Economic Accounts.
- You can compute the GVC measures used in the paper (WWZ, 2013) using the Decompr R package.
- The codes computing the GDP growth decompositions presented in the paper can be downloaded below, if you use it or any part of it in your research, please, cite our paper. This code assumes that you have the WWZ (2013) decomposition ready.
Unpublished version
Published version
Globalne łańcuchy wartości | Global Value Chains
This website is devoted to the project "Global production chain: value added and productivity of entreprises", headed by Jan Hagemejer and financed by National Science Center
- The project is financed by the National Science Center NCN (grant number UMO-2013/09/D/HS4/01519).
- Project started in April 2014 and was completed by October 2016.
- The objective of the project is to assess how the presence of the economies of the Central and Eastern Europe including Poland in the global production precess affects the level and the growth rate of value added and GDP in the economy and the effectiveness of production processes.The baseline research hypothesis is that of increasing importance of globalization on the production processes in the economies of the CEEC.
- The project bridges several strands of economic literature: productivity effects of FDI, convergence, firm-level performance
- Data used in the project come from several sources the WIOD (the world input-output database) and the Amadeus database of firm-level financial indicators.
The objective of the proposed project is to assess how the presence of the economies of the CEECs including Poland in the global production process affects the level of value added in the economy and the effectiveness of production processes.The baseline research hypothesis is that of increasing importance of globalization on the production processes in the economies of the CEECs. The supporting hypotheses are:
The structure of international trade of Poland and the CEEC has changed over the recent two decades. The importance of both imports and exports of intermediate goods has increased. The output of export-intensive industries, which is believed to be the major growth driver in these economies, is to a larger and larger extent dependent on the imports of intermediate goods. As these imports usually contain a considerable share of value added, the content of domestic value added in exports is usually largely overestimated.
The multinationals and other foreign-owned enterprises are more productive than their domestic counterparts. The productivity premium is expected to be higher for the sectors that are more intensively involved in the global value chain (a high content of foreign value added in exports, a high share of intermediates imports) due to technology diffusion and learning within the structure of multinationals. There are also sizeable spillover effects that involve technology adoption by domestic entreprises and they lead to productivity improvements. These effects are associated with the intensity of sectoral international trade, in particular trade in value added in global production chains.
The proposed analysis will make it possible to answer the following research questions:
- Does the relative position in the global value chain affect the process of technology spillovers?
- Does a high share of domestic value added in exports is a requirement for large domestic gains from international trade?
@article{doi:10.1080/1540496X.2017.1369878,
author = {Jan Hagemejer},
title = {Trade and growth in the New Member States. The role of global value chains},
journal = {Emerging Markets Finance and Trade},
volume = {0},
number = {ja},
pages = {null},
year = {2017},
publisher = {Routledge},
doi = {10.1080/1540496X.2017.1369878},
URL = {
https://doi.org/10.1080/1540496X.2017.1369878
},
eprint = {
https://doi.org/10.1080/1540496X.2017.1369878
}
}