THE EFFECTS OF PARTICIPATION IN TO GLOBAL VALUE CHAINS ON THE COUNTRIES' ECONOMIES: PANEL DATA ANALYSIS

Abstract

Globalization of production, fragmentation of production, distribution of each step to the appropriate geography and international marketing of the unified products are realized as “Global Value Chains”. In this new global order countries should engage in global value chains to take part in international trade. In this scope, the main purpose of the study is to show the positive and negative effects of GVC participation of the developed and developing countries, especially Turkey, within accordance of the changing pattern of global trade by using Panel Data Analysis. The results show that GVC participation has positive effect on the growth, employment and wages of both developed and developing countries. This effect is higher on the developed countries.