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Servitization and research and development (R&D) innovation provide new developmental opportunities for transformation in the construction industry. This study aims to explore the transformative impact of servitization and R&D innovation on the value added of the construction industry, offering new insights into industry transformation and growth.

This study utilizes panel data from Chinese listed construction companies from 2014 to 2022 to empirically investigate the relationship among servitization, R&D innovation and value added in the construction industry. The data analysis is augmented by incorporating text mining techniques to rigorously investigate the interplay among servitization, R&D innovation and the value added within the construction industry.

The research findings indicate that the impact of servitization on value added follows a positive U-shaped relationship, while the influence of R&D innovation on value added exhibits an inverted U-shaped relationship. Additionally, innovation investment plays a negative moderating role in the relationship between servitization and value added.

This study reveals a fresh perspective on how construction companies can leverage servitization as a strategic pathway for transformation and competitive advantage. The research also lays a theoretical groundwork for future innovation investment strategies in the construction industry, emphasizing the need for a balanced approach to innovation investments to maximize value added.

This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of gross domestic product (GDP). The study specifically focuses on the value-added share as a percentage of GDP in the agricultural, manufacturing, industrial, and service sectors using time series data from 1988 to 2019.

The study utilizes the autoregressive distributive lag (ARDL) bound test framework for estimation, based on the conclusions drawn from the augmented Dickey-Fuller and Phillips–Perron unit root tests, which provide evidence of a mixed order of integration.

The result reveals that agriculture value-added (AVA), manufacturing value-added (MVA), industrial value-added (IVA), and services value-added (SVA) have a positive and significant impact on poverty alleviation in both the short and long run. However, the agriculture sector is found to be more effective in reducing poverty compared to the other sectors examined in this study. Additionally, this study challenges the notion that SSA countries have undergone an immature structural transformation. Instead, it reveals a pattern of stagnant structural transformation, as indicated by the lack of growth in the industrial and manufacturing value-added shares of GDP.

To enhance productivity and reduce poverty, SSA economies should adopt a development strategy that prioritizes heavy manufacturing and industrial sectors, leading to a transition from the agricultural to the secondary and tertiary sectors.

The study contributes to the emerging literature on structural transformation by investigating which sector is more efficient in reducing poverty in SSA countries, using the value-added share as a percentage of GDP for agricultural, manufacturing, industrial, and service sectors. The study also aims to determine if SSA countries have experienced immature structural transformation due to the growing share in the service sector.

This study aims to provide an empirical investigation into rising capital flight and the role of institutional quality to mitigate its effect on the real sector in sub-Saharan Africa (SSA).

The study uses the system generalized method of moments and uses data spanning from 1989 to 2020 from 26 SSA countries.

The findings show that capital flight has no direct impact on the real sector while institutional quality adversely impacted the agricultural and industrial sectors. The study also found that institutional quality is unable to mitigate the effect of capital flight on the industrial sector.

This study investigates if institutional quality mitigates the impact of capital flight on the real sector proxied by industrial value-added and agriculture value-added.

The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.

Based on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.

The estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.

This article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.

The purpose of this paper is to determine the effect of the industrial sector, renewable energy consumption and nonrenewable energy consumption in Indonesia on the ecological footprint from 1990 to 2020 in the short and long term.

This paper uses vector error correction model (VECM) analysis to examine the relationship in the short and long term. In addition, the impulse response function is used to enable future forecasts up to 2060 of the ecological footprint as a measure of environmental degradation caused by changes or shocks in industrial value-added, renewable energy consumption and nonrenewable energy consumption. Furthermore, forecast error decomposition of variance (FEVD) analysis is carried out to predict the percentage contribution of each variable’s variance to changes in a specific variable. Granger causality testing is used to enhance the analysis outcomes within the framework of VECM.

Using VECM analysis, the speed of adjustment for environmental damage is quite high in the short term, at 246%. This finding suggests that when there is a short-term imbalance in industrial value-added, renewable energy consumption and nonrenewable energy consumption, the ecological footprint experiences a very rapid adjustment, at 246%, to move towards long-term balance. Then, in the long term, the ecological footprint in Indonesia is most influenced by nonrenewable energy consumption. This is also confirmed by the Granger causality test and the results of FEVD, which show that the contribution of nonrenewable energy consumption will be 10.207% in 2060 and will be the main contributor to the ecological footprint in the coming years to achieve net-zero emissions in 2060. In the long run, renewable energy consumption has a negative effect on the ecological footprint, whereas industrial value-added and nonrenewable energy consumption have a positive effect.

For the first time, value added from the industrial sector is being used alongside renewable and nonrenewable energy consumption to measure Indonesia’s ecological footprint. The primary cause of Indonesia’s alarming environmental degradation is the industrial sector, which acts as the driving force behind this issue. Consequently, this contribution is expected to inform the policy implications required to achieve zero carbon emissions by 2060, aligned with the G20 countries’ Bali agreement of 2022.

This study aims to investigate two issues: (1) a nexus between climate-related financial policies (CRFP) and global value chains (GVC) and (2) the government’s policies to help countries enhance the efficient use of CRFP in improving a country’s likelihood to participate in GVC.

To investigate the connection between GVC and CRFP, the authors incorporate that backward participation is measured using foreign value-added, while domestic value-added is used to measure forward participation, quantified as proportions of gross exports. The study analyses yield significant insights across a span of 20 developing countries and 26 developed countries over the period from 2010 to 2020.

Regarding the first issue, the authors affirm the presence of a linear link between GVC and CRFP, implying that involvement in CRFP is advantageous for both backward and forward participation. Furthermore, the authors identify long-term GVC and CRFP cointegration and confirm its long-term effects. Notably, the expression of a linear relationship between GVC and CRFP appears to be stronger in developing countries.

The study findings, together with previous research, highlight the importance of financial policies relating to climate change (CRFP) in the context of economic growth. Climate change’s consequences for financial stability and GVC highlight the importance of expanded policymakers and industry participation in tackling environmental concerns.

Regarding the second issue, the study findings suggest critical policy implications for authorities by highlighting the importance of financial stability and expanded policymakers in promoting countries' participation in GVC.

This paper investigates the link between GVC performance and CRFP, offering three significant advances to previous research. Moreover, as a rigorous analytical method, this study adopts a typical error model with panel correction that accounts for cross-sectional dependency and stationarity.

The concept of the “global production network” (GPN) has emerged as a framework for analyzing the intricate connections between a dominant or pivotal firm and its suppliers across various countries. ¹ The expansion of GPNs signifies that trade encompasses not only the final products but also the parts and components (P&C) involved in their production. The reduction of tariff barriers and advancements in transportation and communication technology have facilitated the fragmentation of production processes across different countries. This has led to a significant transformation in the nature and structure of global trade. This chapter aims to synthesize and present this literature. By identifying the key drivers, determinants, and consequences of fragmentation trade through a literature-based approach, this study aids in assessing the opportunities and challenges those lagging countries, like India, encounter in terms of increased participation in GPNs.

The American Dream is tightly woven into the American culture and way of life. Despite the importance and ubiquitous nature of the American Dream, the topic is difficult to define and belief in the attainability of the American Dream changes over time. Because of the little academic research on the topic, this study aims to fill this gap and investigate what people think about the American Dream and what factors influence the perception that this concept is outdated among different two generations – Baby Boomers and Millennials.

An online survey containing both open-ended and close-ended questions was conducted in two age groups via Qualtrics – 245 Millennials (born 1980–1996) and 253 Baby Boomers (born 1946–1964). Open-ended questions were analyzed using NVivo and closed-ended questions were analyzed using SPSS. Items on the online survey measured the definition of the American Dream, factors in defining it, the relevancy and attainability of the Dream, whether it was outdated, as well as Schwartz’s list of values (Lindeman and Verkasalo, 2005).

Three research questions were investigated. First, the results show that Baby Boomers and Millennials define the Dream similarly in terms of a house, family, happiness, freedom and equality. Second, they differ, however, in whether they believe that the Dream is relevant and attainable. Specifically, only Baby Boomers believe that the Dream is still relevant, but both generations believe that it is harder for younger generations to achieve the Dream. Third, the authors found similarities and differences in terms of demographics and values predicting whether the two generations believed that the Dream is outdated, and new values should be added. For both generations, values were more likely to predict the belief that the Dream was outdated. Using Schwartz’s values, those high in universalism were more likely to believe that the Dream was outdated and that new values should be added to the definition of the Dream for both generations. The values of security, self-direction, achievement and benevolence differed between the generations in believing that the Dream was outdated and that new values should be added.

This research provides insight into how these macrolevel beliefs influence people at the microlevel and how businesses or public policymakers can use these concepts to influence attitudes or behaviors.

Autonomous and connected mobility technologies have led to a reconfiguration of the automotive industry value chain. This may involve an impact on the geography of the European automotive industry, especially for peripheral countries. The aim of the paper is to analyse the repositioning of a peripheral country (Portugal) in the core-periphery model of the automotive industry derived from this new technological context.

An eclectic theoretical framework, based on the global value chain (GVC) approach, the spatial division of labour and location theory, supports this research. Moreover, an original empirical study was developed. This study comprised a comparative analysis of two samples of firms based on the key variables related to country position. One sample comprised Portuguese traditional automotive firms and the other Portuguese firms linked to autonomous and connected mobility technologies.

The results highlight the upgrading of Portugal in the European core-periphery model of the automotive industry. This is due to the presence of domestic firms, especially multinationals, linked to autonomous and connected mobility technologies in the country. The decision power derived from their position on the first levels of supply and the added value of activities and technological innovation of these new actors change the role of the country in the European automotive industry. The main implication is that managers of domestic firms and policy makers in peripheral countries can upgrade a country’s position in the European core-periphery model by shifting its competitiveness toward knowledge-based activities linked to the new mobility technologies.

This research is supported by a novel eclectic theoretical framework based on the global value chain (GVC) approach, the spatial division of labour and location theory. Moreover, country position is analysed through empirical evidence. An original comparative empirical study based on the key variables defined under this theoretical framework was developed.

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.

The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.

Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.

We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.

The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.