When Linder meets Hirschman: inter-industry linkages and global value chains in Business services

Lopez-Gonzalez, Javier, Meliciani, Valentina and Savona, Maria (2019) When Linder meets Hirschman: inter-industry linkages and global value chains in Business services. Industrial and Corporate Change. ISSN 0960-6491 (Accepted)

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Abstract

This paper looks at the determinants of a country’s participation in business services (BS) Global Value Chains (GVCs). BS GVCs are comparatively less explored than traditional manufacturing ones, and there is a gap in the literature on the relative positions of countries in BS GVCs and the opportunities they might open for development. This paper puts forward and finds empirical support to the conjecture that the domestic structure of backward and forward linkages à la Hirschman, alongside the domestic representative demand for BS à la Linder, are of high importance. The results, based on the World Input Output Database, suggest that the presence of strong domestic backward-linked industries to BS makes an emerging country more likely to create domestic value within BS GVC. Our findings contribute to the debate on a “premature de-industrialisation” in emerging countries and on the relationship between levels of development and engagement in BS GVCs.

Item Type: Article
Keywords: BUSINESS SERVICES; GLOBAL VALUE CHAINS; HIRSCHMAN LINKAGES; DEVELOPMENT.
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: H Social Sciences > HD Industries. Land use. Labour > HD0072 Economic development. Development economics. Economic growth
H Social Sciences > HD Industries. Land use. Labour > HD0072 Economic development. Development economics. Economic growth > HD0075 Theory. Method. Relation to other subjects
H Social Sciences > HD Industries. Land use. Labour > HD0072 Economic development. Development economics. Economic growth > HD0075 Theory. Method. Relation to other subjects > HD0075.8 Economic development projects
Depositing User: Maria Savona
Date Deposited: 01 Apr 2019 13:25
Last Modified: 01 Apr 2019 13:25
URI: http://srodev.sussex.ac.uk/id/eprint/82887

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Project NameSussex Project NumberFunderFunder Ref
ISIGrowth: Innovation-fuelled, Sustainable, Inclusive GrowthG1610EUROPEAN UNION649186