The effect of price dynamics on African’s participation in global value chains
Type de matériel :
79
This article uses the panel vector autoregression (PVAR) specification developed by Love and Zicchino (2006) to measure GVC participation in forty-two African countries and empirically analyze the influence of price dynamics on their GVC participation. Data were collected from various World Bank reports. Over the sample period, which we set as 1990 to 2018, the results of our study show that, firstly, GVCs in most African countries follow an upward trend; secondly, the spatial distribution of GVCs is relatively unstable, but there is significant spatial heterogeneity between MENA countries and SSA; and thirdly, price dynamics exert negative and significant effects on GVC participation in Africa depending on whether countries are members of the monetary union or not. Economic policies of price stability and monetary and industrial accommodation are encouraged to boost the participation of African countries in global value chains.
Réseaux sociaux