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Dynamic trade and technology linkages: a perspective from global value chain upgradation of Asian countries

Kashika Arora (Department of Economics, Indian Institute of Foreign Trade, New Delhi, India)
Areej Aftab Siddique (Dubai Business School, University of Dubai, Dubai, United Arab Emirates)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 27 December 2022

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Abstract

Purpose

The focus is on determining the long-term relationship in explaining how technological capabilities interact with trade and global value chain (GVC) participation to aid in the upgradation process using a panel auto-regressive distributed lag (ARDL) model. The results suggest that export of both low-skill and medium-skill technology-intensive manufactures and patents by residents positively and significantly impact GVC participation.

Design/methodology/approach

This paper examines the dynamic linkages between GVC participation and technological capability of major Asian countries in a comparative (1995–2018) perspective.

Findings

This implies that certain sectors enable greater integration into GVCs in the long-run, supported by critical learning variables. Further, with the help of the panel causality test, a bi-directional flow between GVC participation and export of high-technology manufactures and import of labour-intensive technology manufactures is witnessed. Even a one-way flow from research and development (R&D) intensity to GVC participation is seen.

Originality/value

The technological capabilities are found to be characterising the initial structure of local enterprises in trade and GVCs, as well as the extent to which emerging-market firms may harness knowledge flows and migrate into high-tech industries.

Keywords

Citation

Arora, K. and Siddique, A.A. (2022), "Dynamic trade and technology linkages: a perspective from global value chain upgradation of Asian countries", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-11-2021-1723

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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