Determinants of global value chain participation: cross-country analysis

Abstract

This paper examines the factors that influence the four most common measures of global value chain participation, separately for the sample of countries included in the World Input–Output Database and Trade in Value-Added database. For both samples, country size is an important driver of global value chain indicators. Participation in global value chains varies by industry groups and their technological classification. The influence is strongest for high-tech manufacturing, followed by high-tech services. Real exchange rate has a significant positive relationship with the domestic value added in gross exports ratio and forward linkage. The findings on the other covariates are sample sensitive.