International Economics

<< N°163

  N°163  
Issue Q3 2020  
Cross-country convergence in global value chains: Evidence from club convergence analysis  
Bhushan Praveen Jangam
Badri Narayan Rath
 
We investigate the evidence of convergence/divergence in global value chain (GVC) participation across 61 countries from 2005 to 2015, employing the panel club convergence technique. The findings do not support evidence of absolute convergence, but evidence of club convergence. Seven clubs and a non-convergent group are identified, signifying that the types of activities are not uniform across countries, each club following a unique transition path. Further, we examine convergence in the forward and backward participation of GVCs. The findings reveal similar evidence of club convergence. Policies targeting GVCs need to consider the transition path of each club for better outcomes.
Abstract

   
Global value chains ; Forward linkage ; Backward linkage ; Club convergence ; Keywords
F1 ; F12 ; F15 ; JEL classification
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