engleski

Participation in global value chain and external imbalances in the EU

Due to large share of intermediate goods and services trade in global trade flows, contemporary trade analysis (based on gross export and import data) became inadequate and the necessity of calculating trade in value-added (TiVA) which is created through global value chains (GVCs) appeared. This paper is focused to the relationship between the country’s participation in global value chains (GVC) and the current account balance. The analysis is performed by calculating trade in value-added (TiVA) for the EU28 member states, GVC participation index and GVC position. The econometric analysis found out the determinants of current account balance, among them, GVC participation index and the backward linkages are significant determinants with the negative influence on the current account balance.

global value chains, trade in value added, current account

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