Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade

Efogo, Françoise Okah and Wonyra, Kwami Ossadzifo and Osabuohien, E. S. C. (2021) Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade. Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade Françoise Okah Efogo a, Kwami Ossadzifo Wonyrab and Evans Osabuohienc aFaculty of Economics and Management (FSEG), CEREG - University.

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Abstract

This study investigates how foreign direct investment (FDI) affects the participation of developing countries in global value chains (GVCs). This inquiry is crucial as FDI is seen, at least theoretically, as a means of expediting developing countries’ participation in GVCs in some ways. It provides empirical evidence of this nexus between FDI and GVC using a dynamic panel data model including 43 developing countries (2010–2019). Our results show, among other things, that FDI has a significantly positive effect on the participation of developing countries in GVCs. This is found to be the case regardless of whether the FDI is in the primary, secondary or tertiary sector. However, to benefit fully requires policymakers to strengthen the absorptive capacity of the local labour force (productivity and education level)

Item Type:	Article
Uncontrolled Keywords:	FDI; global value chains (GVC); foreign value-added (FVA); domestic value-added (DVA); developing countries
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	AKINWUMI
Date Deposited:	14 Mar 2023 15:54
Last Modified:	14 Mar 2023 15:54
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/16699

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