Scientific paper
Linkages between services and manufacturing as a new channel for GVC development: Evidence from CEE countries
Aleksandra Kordalska, Magdalena Olcyk
2023
#Manufacturing
#Services
#Eastern/Non-EU Europe and Central Asia
The goal of the paper is to verify a causal relationship between forward linkages from domestic services to manufacturing and the participation/position of a country in global value chains (GVCs) in selected Central and Eastern European economies. We observed a strong polarisation pattern: the Baltic countries along with the Czech Republic strengthen their positions and participation in GVCs by having a strong relationship between the financial sector and manufacturing, while Poland, Hungary, and Slovakia have solid linkages between transportation services and manufacturing. We also discover that the reverse relationship is significant.
