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Search results for: gvc
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Within- and between-firm wage inequalities and trade integration in GVC
PublicationThis paper examines between- (inter) and within- (intra) firm wage inequality using rich employer-employee data for 12 European countries. We confirm that much overall wage inequality is observed within sectors and within occupations. The share of the within- and between-firm components in overall wage inequality varies across countries. We estimate the link between involvement in global value chains (GVCs) and wages differentiating...
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GVC involvement and the gender wage gap: Micro -evidence on European countries
PublicationWe examine linkages between involvement in global value chains (GVCs) and gender wage inequalities. We use merged data from Structure of Earnings Survey and the World Input Output Database covering 18 European countries. We employ information on employees’ personal and company characteristics and a sectoral involvement in GVCs. In general, the wages of workers from sectors more involved in GVCs are lower. However, the relationship...
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GVC and wage dispersion. Firm-level evidence from employee-employer database
PublicationResearch background: Wage inequalities are still part of an interesting policy-oriented research area. Given the developments in international trade models (heterogeneity of firms) and increasing availability of micro-level data, more and more attention is paid to wage differences observed within and be-tween firms. Purpose of the article: The aim of the paper is to address the research gap concerning limited cross-country evidence...
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Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries
PublicationThe goal of the paper is to verify a causal relationship between forward linkages from domestic services to manufacturing and the participation/position of a country in global value chains (GVCs) in selected Central and Eastern European economies. We observed a strong polarisation pattern: the Baltic countries along with the Czech Republic strengthen their positions and participation in GVCs by having a strong relationship between...
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Linkages between services and manufacturing as a new channel for GVC growth: evidence from CEE countries
PublicationThe aim of this paper is to use a panel Granger causality test to verify the hypothesis of the existence of a causal relationship between forward linkages from domestic services to manufacturing and a country’s participation and position in GVCs in selected central and eastern European economies – the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia – for the period 2000-2014. Our results show that the Baltic...
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Workers, Firms and Task Heterogeneity in International Trade Analysis: An Example of Wage Effects of Trade Within GVC.
PublicationObjective: The main aim of this article is to present how the heterogeneity of workers, firms, and tasks can be incorporated into empirical international trade analysis. In particular, we provide an empirical example in which we aim to quantify the reliance on foreign value added (FVA) within Global Value Chains (GVC) on wages. Research Design & Methods: We estimate a Mincerian wage model augmented with a measure of foreign value...
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Global value chains and inward FDI: An empirical investigation of European firms
PublicationThis paper empirically investigates whether and how the level of GVC integration of a given market may explain the presence of foreign-owned firms. Using firm-level data from 28 European Union countries during the period 2008–2014, we provide evidence that a greater country-sector-level GVC participation, via both backward and forward linkages, exerts a positive effect on a firm's likelihood to receive FDI. These findings appear...
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Joint foreign ownership and global value chains effects on productivity: a comparison of firms from Poland and Germany
PublicationPurpose The study aims to examine the joint effects of foreign ownership (FO) and involvement in global value chains (GVCs) on the productivity performance of firms from a catching-up country (Poland) and a leader economy (Germany). Design/methodology/approach The authors use micro-level data on firms combined with several sector-level GVC participation measures. The authors investigate whether the link between productivity and...
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Global value chains and labour markets – simultaneous analysis of wages and employment
PublicationThis study examines the overall effect of global value chains (GVCs) on wages and labour demand. It exploits the World Input–Output Database to measure GVC involvement via recently developed participation indices (using both backward and forward linkages) and the relative GVC position using three-stage least squares regression. We find that the relative GVC position is negatively correlated with wages and employment and that the...
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Wage determination, Global Value Chains and role played by wage bargaining schemes: The case of Poland
PublicationThis study examines the linkages between GVC involvement and wages in Poland given different wage bargaining schemes. The analysis is based on microdata from the European Structure of Earnings Survey for Poland combined with sectoral data from the World Input-Output Database. In particular, two measures of GVC involvement were used: the share of foreign value added (FVA) to export and the measure of traditional offshoring. The...
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Position in global value chains and wages in Central and Eastern European countries
PublicationThis paper examines the relationship between the relative position of industries in Global Value Chains (GVC) and wages in 10 Central and Eastern European countries. We combine GVC measures of global import intensity of production, upstreamness and the length of the value chain with micro-data on workers. We find that the wages of Central and Eastern European countries workers are higher when their industry is at the beginning...
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The impact of China’s One-Belt One-Road initiative on international trade and global value chains
PublicationThis study examines the potential effects of China’s ‘One-Belt One-Road’initiative (OBOR) on trade flows and global value chain (GVC) connections.The empirical analysis is based on the augmented trade gravity model, which comprises 186 economies and 199 of their partners from 2000 to 2018. We also estimate the gravity model for involvement in GVC (domestic value added in intermediate exports, foreign value added in exports, and...
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Global value chains and wages under different wage setting mechanisms
PublicationThis study examines whether, and how, differences in wage bargaining schemes shape the relationship between global value chains (GVCs) and the wages of workers while considering both GVC participation and position in GVC. Our dataset is derived from the European Structure of Earnings Survey (SES), containing employee–employer data from 18 European countries, merged with sectoral data from the World Input-Output Database (WIOD)....
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Working Conditions in the Context of Global Value Chains and Routinisation: An Example of Polish Workers
PublicationThe paper aims to explore the linkages between global production fragmentation, routinisation and the well-being of workers in Poland. In particular, the focus is placed on the selected measures of working conditions, such as the social environment, work intensity, and working time quality to examine their dependence on involvement in international trade and the routinisation level. We merge individual data describing the working...
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The role of the One-Belt One-Road initiative in China's exports and global value chains
PublicationResearch background: China is regarded as the “world factory” highly involved in international trade and plays an increasingly important role in the global value chains (GVC). Additionally, the “One-Belt One-Road” (OBOR) initiative was proposed by the Chinese government to further promote China in the international market. Purpose of the article: The article explores the role of the OBOR in China’s exports and global value...
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The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches
PublicationThis study presents a systematic literature review to provide a collection of theories explaining the impact of global value chains (GVCs) on labour market outcomes. Due to the complex nature of GVCs and the interconnectedness of wages, employment, and productivity, many direct and indirect effects are at play. To ensure a transparent and systematic flow of the review process, I follow the PRISMA guide. Eventually, 36 records out...
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Upgrading low value-added activities in global value chains: a functional specialisation approach
PublicationThis paper aims to identify patterns of functional specialisation (FS) in global value chains (GVCs) and determinants of upgrading them for selected Central Eastern European (CEE) economies. By combing the World Input-Output Database with data on occupations, we reveal a new FS pattern among subgroups of CEEs. Poland and Slovakia have an unfavourable GVC position and specialise in low value-added fabrication function. In contrast,...
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Wage response to global production links: evidence for workers from 28 European countries (2005–2014)
PublicationUsing rich individual-level data on workers from 28 European countries, this study provides the first so extensive cross-country assessment of wage response to global production links within GVC in the period 2005–2014. Unlike the other studies, the authors (i) address the importance of backward linkages in globally integrated production structures (capturing imports of goods and services needed in any stage of the production of...
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Global value chains and productivity gains: a cross-country analysis
PublicationThe main aim of this article is to assess the implications of involvement in global value chains (GVC) on sectoral productivity growth from the international perspective. Our panel data analysis covers 40 countries, 20 industries (13 manufacturing and 7 services sectors) in the period 1995–2011. Estimation results suggest that there is a positive link between TFP growth and the involvement of sectors in global value chains (measured...
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China’s international trade and global value chains under One-Belt One-Road initiative
PublicationResearch background: After China acceded to the WTO in 2001, its foreign trade has expanded rapidly to be the largest share in the world. However, China's economic development changing from high-speed growth to medium high-speed growth in recent years. At the same time, the increase in labour cost and overcapacity also hinder China’s international trade. In order to solve these challenges and strengthening ties...
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Effect of the integration into Global Value Chains on the employment contract in Central and Eastern European countries
PublicationResearch background: In the era of globalization, there is a need to address decent work deficits in Global Value Chains (GVCs). The forms of working conditions reveal a broad dispersion of contents. The literature review exposes hardly any Europe-focused research assessing the socioeconomic impact of global production links and going beyond their pure economic effects assessed in terms of employment, productivity or wages. Purpose...
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How digital technology affects working conditions in globally fragmented production chains: Evidence from Europe
PublicationThis paper uses a sample of over 9 million workers from 22 European countries to study the intertwined relationship between digital technology, cross-border production links and working conditions. We compare the social consequences of technological change exhibited by three types of innovation: computerisation (software), automation (robots) and artificial intelligence (AI). To fully quantify work-related wellbeing, we propose...
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Global value chains, wages, employment and labour production in China: A regional approach
PublicationIn this study we analyse the relationship of trade and global value chains (GVCs) to the labour market in 31 Chinese provinces for 25 sectors, by means of a system of structural equations. We firstly distinguish between provincial value chains (PVCs) and interprovincial value chains (PRVCs) in order to outline their distribution and evolution over time. Then, we investigate to what extent participation in GVCs, PVCs and PRVCs –...