MEASURING CONTRIBUTIONS OF TECHNOLOGY CHANGES IN GVCs ON THE ECONOMIC GROWTH OF EMEs

Abstract

The objective of this study is to explore the relationship between technology changes in global value chains (GVCs) and economic growth of emerging market economies (EMEs). The key findings are that EMEs have a higher economic growth rate than all countries analyzed, with the manufacturing sector being the major contributor to economic growth. Simple GVCs make a larger positive contribution than complex GVCs, while the non-GVCs component shows different patterns. The study's findings contribute to the field by providing evidence on the relationship between GVCs and economic growth in EMEs. The study's findings suggest that policymakers should focus on promoting the manufacturing sector in EMEs, particularly in medium-high and high technology industries, and adopt a balanced approach to GVC participation.