EXPORT DYNAMICS, VALUE CHAINS AND INDUSTRIALIZATION PATTERNS IN MEXICO AND SOUTH KOREA, 1995-2020
Main Article Content
Abstract
The aim of this paper is to examine, through a panel model, the impact of integration into global value chains (GVCs) on industrial development (13 manufacturing subsectors) in Mexico and South Korea during the period 1995-2020. The main findings indicate that: i) offshoring promotes positive effects on industrial performance, although those effects are more relevant for South Korea; ii) the position within GVCs determines the internalization of the dynamic gains associated with openness; iii) the inflation targeting and wage deflation model, in the absence of an effective industrial policy, has contributed to slowdown productivity and output growth. Hence we conclude that the nature of Mexico’s industrial specialization pattern constitutes a determining element of the observed low drag and dispersion potential of the manufacturing sector.
Article Details
Citas en Dimensions Service
References
Aghion, P. y Howitt, P. (2009). The Economics of Growth. Cambridge. MA: MIT Press.
Baltagi, B. (2021). Econometric Analysis of Panel Data (Sixth Edition). The Oxford Handbook of Panel Data. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199940042.001.0001
Banga, K. (2022). Impact of global value chains on total factor productivity: The case of Indian manufacturing. Review of Development Economics, 26(2), 704-735. https://doi.org/10.1111/rode.12867
Beck, N. (2001). Time-series - Cross-section data: What have we learned in the past few years? Annual Review of Political Science, 4(1), 271-293. https://doi.org/10.1146/annurev.polisci.4.1.271
Brancati, E., Brancati, F. y Maresca, A. (2017). Global value chains, innovation and performance: Firm-level evidence from the Great Recession. Journal of Economic Geography, 17(5), 1039-1073. https://doi.org/10.1093/jeg/lbx003
Constantinescu, C., Mattoo, A. y Ruta, M. (2019). Does vertical specialization increase productivity? The World Economy, 42(8), 2385-2402. https://doi.org/10.1111/twec.12801
Crowe, D. y Rawdanowicz, L. (2023). Risks and opportunities of reshaping global value chains [OECD Economics Department Working Papers no. 1762]. https://doi.org/10.1787/f758afe8-en
Dougherty, S. y Reynaud, J. (2017). Boosting productivity in Mexico through integration into global value chains [OECD Economics Department Working Papers no. 1376]. http://doi.org/10.1787/571d5b1f-en
Fu, Q. (2023). The impact of global value chain embedding on the upgrading of China’s manufacturing industry. Frontiers in Energy Research, 11(1256317), 1-12. https://doi.org/10.3389/fenrg.2023.1256317
Grossman, G. y Helpman, E. (1991). Innovation and Growth in the Global Economy. Cambridge, MA: The MIT Press.
Grossman, G. y Rossi-Hansberg, E. (2008). Trading tasks: A simple theory of offshoring. American Economic Review, 98(5), 1978-1997. https://doi.org/10.1257/aer.98.5.1978
Gunnella, V., Fidora, M.y Schmitz, M. (2017). The impact of global value chains on the macroeconomic analysis of the euro area. European Central Bank Economic Bulletin Articles, 8(2017), 75-95. [en línea] Disponible en: <https://www.ecb.europa.eu/pub/pdf/other/ebart201708_02.en.pdf>.
Kummritz, V., Taglioni, D. y Winkler, D. (2017). Economic upgrading through global value chain participation: Which policies increase the value-added gains? [Policy Research Working Paper no. 8007]. [en línea] Disponible en: <http://hdl.handle.net/10986/26348>.
Montalbano, P., Nenci, S. y Pietrobelli, C. (2016). International linkages, value-added trade, and firm productivity in Latin America and the Caribbean. En: M. Grazzi y C. Pietrobelli (eds.), Firm Innovation and Productivity in Latin America and the Caribbean. https://doi.org/10.1057/978-1-349-58151-1_9
Lall, S. (1992). Technological capabilities and industrialization. World Development, 20(2), 165-186. https://doi.org/10.1016/0305-750X(92)90097-F
Li, B. y Liu, Y. (2018). The production life cycle. The Scandinavian Journal of Economics, 120(4), 979-1278. https://doi.org/10.1111/sjoe.12255
Lu, Y., Sica, E. y Wolszczak-Derlacz, J. (2024). Global value chains, wages, employment and labour production in China: A regional approach. Structural Change and Economic Dynamics, 69 (2024), 124-142. https://doi.org/10.1016/j.strueco.2023.12.005
Perrotini, I. y Vázquez, J. (2018). El supermultiplicador, la acumulación de capital, las exportaciones y el crecimiento económico. El Trimestre Económico, 85(338), 411-432. https://doi.org/10.20430/ete.v85i338.542
Rigo, D. (2021). Global value chains and technology transfer: new evidence from developing countries. Review of World Economics, 157(2), 271-294. https://doi.org/10.1007/s10290-020-00398-8
Rohit, K. (2023). Global value chains and structural transformation: Evidence from the developing world. Structural Change and Economic Dynamics, 66(2023), 285-299. https://doi.org/10.1016/j.strueco.2023.05.006
Szymczak, S. (2024). The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches. Journal for Labour Market Research, 58(9), 1-25. https://doi.org/10.1186/s12651-024-00367-w
Tian, K., Dietzenbacher, E. y Jong-A-Pin, R. (2022). Global value chain participation and its impact on industrial upgrading. World Economy, 45(5), 1362-1385. https://doi.org/10.1111/twec.13209
Yanikkaya, H. y Altun, A. (2020). The impact of global value chain participation on sectoral growth and productivity. Sustainability, 12(12), 1-18. https://doi.org/10.3390/su12124848
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following conditions:
a) The authors retain the copy rights (copyright) and give the journal the right of first publication, with the work also under the Creative Commons Attribution License that allows third parties to use what is published as long as they refer to the author or authors of the article. work and its publication in this journal.
b) The authors are free to make other contractual agreements for the non-exclusive distribution of the article they publish in this journal (such as including it in an institutional collection or publishing it in a book), provided that they clearly indicate the original publication of the work in this journal.