Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?

Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?

This paper examines whether a country’s participation in global value chains supports spatial convergence in the domestic economy. In theory, production disintegration through “unbundling” makes industrial development less lumpy, providing opportun...

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Bibliographic Details
Main Authors: Grover, Arti, Lall, Somik V.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
ZIPF'S LAW
CITY SIZE DISTRIBUTION
URBANIZATION
GLOBAL VALUE CHAIN
OFFSHORING
SPATIAL ECONOMICS
INEQUALITY
Online Access:http://documents.worldbank.org/curated/en/172431618022755760/Does-Participation-in-Global-Value-Chains-Reduce-Spatial-Inequalities-within-Countries
http://hdl.handle.net/10986/35441
id okr-10986-35441
recordtype oai_dc
spelling okr-10986-354412022-09-20T00:09:15Z Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries? Grover, Arti Lall, Somik V. ZIPF'S LAW CITY SIZE DISTRIBUTION URBANIZATION GLOBAL VALUE CHAIN OFFSHORING SPATIAL ECONOMICS INEQUALITY This paper examines whether a country’s participation in global value chains supports spatial convergence in the domestic economy. In theory, production disintegration through “unbundling” makes industrial development less lumpy, providing opportunities for smaller cities to plug and play in niche spaces while not having to fight the agglomeration economies offered by large metropolitan areas. Using data on the size distribution of cities within countries and the Organisation for Economic Co-operation and Development’s Trade in Value Added database, the paper finds that integration in global value chains is strongly associated with greater concentration in large urban agglomerations, not less. A unit standard deviation increase in domestic value added in exports of intermediate products is associated with a decline of 0.1 standard deviation in the Zipf coefficient, an index measuring spatial dispersion. Spatial concentration is strongest for global value chains involving knowledge-intensive business services and high-technology manufacturing. 2021-04-19T13:18:58Z 2021-04-19T13:18:58Z 2021-04 Working Paper http://documents.worldbank.org/curated/en/172431618022755760/Does-Participation-in-Global-Value-Chains-Reduce-Spatial-Inequalities-within-Countries http://hdl.handle.net/10986/35441 English Policy Research Working Paper;No. 9619 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ZIPF'S LAW
CITY SIZE DISTRIBUTION
URBANIZATION
GLOBAL VALUE CHAIN
OFFSHORING
SPATIAL ECONOMICS
INEQUALITY
spellingShingle ZIPF'S LAW
CITY SIZE DISTRIBUTION
URBANIZATION
GLOBAL VALUE CHAIN
OFFSHORING
SPATIAL ECONOMICS
INEQUALITY
Grover, Arti
Lall, Somik V.
Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
relation Policy Research Working Paper;No. 9619
description This paper examines whether a country’s participation in global value chains supports spatial convergence in the domestic economy. In theory, production disintegration through “unbundling” makes industrial development less lumpy, providing opportunities for smaller cities to plug and play in niche spaces while not having to fight the agglomeration economies offered by large metropolitan areas. Using data on the size distribution of cities within countries and the Organisation for Economic Co-operation and Development’s Trade in Value Added database, the paper finds that integration in global value chains is strongly associated with greater concentration in large urban agglomerations, not less. A unit standard deviation increase in domestic value added in exports of intermediate products is associated with a decline of 0.1 standard deviation in the Zipf coefficient, an index measuring spatial dispersion. Spatial concentration is strongest for global value chains involving knowledge-intensive business services and high-technology manufacturing.
format Working Paper
author Grover, Arti
Lall, Somik V.
author_facet Grover, Arti
Lall, Somik V.
author_sort Grover, Arti
title Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
title_short Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
title_full Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
title_fullStr Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
title_full_unstemmed Does Participation in Global Value Chains Reduce Spatial Inequalities within Countries?
title_sort does participation in global value chains reduce spatial inequalities within countries?
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/172431618022755760/Does-Participation-in-Global-Value-Chains-Reduce-Spatial-Inequalities-within-Countries
http://hdl.handle.net/10986/35441
_version_ 1764483040813252608

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