Complementary approach to the analysis of countries’ participation in global production networks

Author:

Osaulenko Oleksandr1,Krysovatyy Andriy2,Zvarych Iryna3,Reznikova Nataliia4,Brodovska Oksana2,Krysovatyy Ihor5

Affiliation:

1. Accounting and Audit, National Academy of Statistics, Kyiv, Ukraine

2. West Ukrainian National University, Ternopil, Ukraine

3. International Economics Department, West Ukrainian National University, Ternopil, Ukraine

4. Department of World Economy and International Economic Relations, Educational and Scientific Institute of International Relations Taras Shevchenko National University of Kyiv, Ukraine

5. Entrepreneurship and Trade Department, West Ukrainian National University, Ternopil, Ukraine

Abstract

The purpose of the article is to explore a complementary approach to the analysis of countries’ participation in global production networks. We have analyzed the methodological aspect from the standpoint of the Micro and Macro theory of international production networks and value chains. In the context of globalization, production networks are actively formed within both individual industries and at the intersectoral level, and they successfully operate not only within limited territories but also at the interstate, interregional and global levels. Therefore, the study of methods for analyzing the participation of countries in global production networks is relevant. The article has used statistical analysis methods. Analytical methods have been used to determine the countries’ leading types of economic activity (fields of specialization, qualitative indicators that characterize each of the industries of the countries). The study of this issue was carried out on the example of the EU countries. One of the methods of analyzing the assessment of bilateral relations of the partner countries’ national economies is complementarity. The article examines the complementarity index as an indicator that determines the trade structure of partner countries. We received a model of the Global map of the International Production Network (nodes of trade) by specific industries, such as Manufacturing, Chemicals and non-metallic mineral products, Rubber and plastics products, computers, electronic and electrical equipment, and transport equipment. To obtain accurate results, we selected specific countries: Germany, the USA, Japan and China, and examined their statistics in two dimensions: gross exports and gross imports, in specifically selected industries.

Publisher

IOS Press

Subject

Statistics, Probability and Uncertainty,Economics and Econometrics,Management Information Systems

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