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Essays on Global Value Chains and Their Macroeconomic Effects
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Increasing production fragmentation and the level of intermediate trade shows that conventional gross statistics fail to provide sound guidelines for policymaking within the GVCs dominated global economy. Although the decomposition of gross statistics has reached the certain level of success recently, the number of empirical studies on the subject is far from satisfactory. This book thus significantly contributes to the literature and opens new windows for empirical analysis and discussions. The book focuses on the new variables generated by the decomposition of gross trade statistics. First, we estimate the impact of various "trade in value added" and "value added in trade" measures on economic growth and total factor productivity growth by using the dynamic panel data methods. The empirical analysis presents new aggregate and comprehensive macroeconomic evidences for the growth and productivity impacts of GVCs. The empirical results cast doubts on the benefits of current level of participation of developing countries in GVCs.
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