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When Linder meets Hirschman: inter-industry linkages and global value chains in business services

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journal contribution
posted on 2023-06-09, 17:24 authored by Javier López González, Valentina Meliciani, Maria SavonaMaria Savona
This article looks at the determinants of a country’s participation in business services (BS) global value chains (GVCs). BS GVCs are comparatively less explored than traditional manufacturing ones, and there is a gap in the literature on the relative positions of countries in BS GVCs and the opportunities they might open for development. This article puts forward and finds empirical support to the conjecture that the domestic structure of backward and forward linkages à la Hirschman, alongside the domestic representative demand for BS à la Linder, are of high importance. The results, based on the World Input-Output Database, suggest that the presence of strong domestic backward-linked industries to BS makes an emerging country more likely to create domestic value within BS GVC. Our findings contribute to the debate on a “premature de-industrialization” in emerging countries and on the relationship between levels of development and engagement in BS GVCs.

Funding

ISIGrowth: Innovation-fuelled, Sustainable, Inclusive Growth; G1610; EUROPEAN UNION; 649186

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Industrial and Corporate Change

ISSN

0960-6491

Publisher

Oxford University Press

Issue

6

Volume

28

Page range

1555-1586

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2019-04-01

First Open Access (FOA) Date

2020-06-05

First Compliant Deposit (FCD) Date

2019-03-29

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