Does global value chain participation boost high technology exports?

Abstract

This study examines the role of global value chain (GVC) participation in high technology exports using data over 120 countries during the 1995-2019 period. Our results suggest that GVC participation matters for high-tech exports. While GVC participation with higher income countries is significantly associated with high-tech exports, GVC participation with lower income countries has no effect. However, regardless of the origin countries, high-tech GVC participation raises high-tech exports. Moreover, GVC participation has a positive impact on high-tech exports to lower income countries. Finally, we present evidence that the determinants of high-tech exports vary by the income level of destination countries.