The pattern of trade of the Central and Eastern European countries has been changing since the beginning of the economic transition in the early 1990s. By the end of the century this process was additionally strengthened by their integration with the European Union and overlapped with the development of global value chains (GVC) spanning across Europe with which the new member states (NMS) have become increasingly integrated.
In this paper, we shed light on these changes by analysing the position of the NMS within the global value chains. We employ the upstreamness measure proposed by Antràs et al. (2012) and use the World Input–Output Database. Although we observe a global increasing trend in the upstreamness of all countries, we find that the NMS have in many cases gone against this trend while converging in their production structure within their group and with the EU-15. This convergence is mostly observed in Czech Republic, Hungary, Poland and Slovakia where the level of upstreamness in the most important exporting sectors was close to that of Germany by the end of the analyzed period 1995–2011.
- This paper uses the WIOD data
- The STATA code used to compute the U measure 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 all the WIOD data in one Stata file.
Unpublished version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{hagemejerghodsi,
author = {Hagemejer, Jan and Mahdi Ghodsi},
title = {Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States},
journal = {Central European Economic Journal},
volume = {0},
number = {ja},
pages = {null},
year = {2017},
publisher = {De Gruyter},
doi = {10.1515/ceej-2017-0003},
URL = {
https://www.degruyter.com/view/j/ceej.ahead-of-print/ceej-2017-0003/cee…
}