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Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States Cover

Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States

By: Jan Hagemejer and  Mahdi Ghodsi  
Open Access
|Sep 2017

Abstract

The pattern of trade of the Central and Eastern European countries has been changing since the beginning of the economic transition in the early 1990s. By the end of the century this process was additionally strengthened by their integration with the European Union and overlapped with the development of global value chains (GVC) spanning across Europe with which the new member states (NMS) have become increasingly integrated.

In this paper, we shed light on these changes by analysing the position of the NMS within the global value chains. We employ the upstreamness measure proposed by Antràs et al. (2012) and use the World Input–Output Database. Although we observe a global increasing trend in the upstreamness of all countries, we find that the NMS have in many cases gone against this trend while converging in their production structure within their group and with the EU-15. This convergence is mostly observed in Czech Republic, Hungary, Poland and Slovakia where the level of upstreamness in the most important exporting sectors was close to that of Germany by the end of the analysed period 1995−2011.

DOI: https://doi.org/10.1515/ceej-2017-0003 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
Language: English
Page range: 19 - 36
Published on: Sep 30, 2017
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2017 Jan Hagemejer, Mahdi Ghodsi, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.