Domestic Foundations of Global Value Chains
17 Pages Posted: 29 Dec 2015
Date Written: December 29, 2015
We analyze the relationship between domestic value chains (DVCs) and global value chains (GVCs). We study whether the development of DVCs has an effect on – or can even be considered a precondition for – the integration into GVCs. We provide evidence that DVC integration positively affects GVC integration. In other words, a functioning DVC is an important determinant for a successful integration into GVCs. The results hold in particular for backward linkages, namely, when intermediates sourced from abroad are used as proxy for GVC integration.
Keywords: Domestic value chains, global value chains, input-output linkages
JEL Classification: F14, F15, F63
Suggested Citation: Suggested Citation