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On Causes and Consequences of Entering Global Value Networks – Place of National Economy in Assessing the Neo-Integration
Kobylianska A. V.

Kobylianska, Alla V. (2020) “On Causes and Consequences of Entering Global Value Networks – Place of National Economy in Assessing the Neo-Integration.” Business Inform 2:29–35.
https://doi.org/10.32983/2222-4459-2020-2-29-35

Section: Globalization Processes in the Economy

UDC 339.9.012.23

Abstract:
In view of recent developments in the sphere of research on the functioning of global value networks, there is an urgent need to examine macro-premises and the consequences of their functioning. The article analyzes the causes and consequences of the functioning of global value chains for national economies from the point of view of existing links with the mega-regionalization processes. It is shown that a country’s participation in global value chains/networks has its own specific macro-economic causes and consequences. The most common reasons for participation in global value chains/networks are allocated from the point of view of the national economy, specially: size of the economy, pace of economic development, availability of foreign capital, level of qualified skills of the labor force, level of external debt, tariff restrictions, etc. The macro-economic consequences of participation in global value chains/networks are systematized as follows: changes in the employment level, productivity, foreign direct investment flows, exports, GNI per capita and related derived indicators. Based on the consensus, according to which the causes and consequences of participation in global value chains/networks are intermediated by the fact that preferential trade agreements, evaluated by means of so-called political and institutional factors, the following is suggested. Since the largest mega-regional agreements are based on preferential trade agreements, one should expect the statistically significant impact of mega-regional agreements on the causes and consequences of the participation of the national economy as a member of the mega-regional uniting in global value chains/networks.

Keywords: global value networks, mega-regional agreements, national economy, modeling, economic development.

Tabl.: 2. Bibl.: 19.

Kobylianska Alla V. – Candidate of Sciences (Economics), Associate Professor, Professor, Department of Agrologistics and Supply Chains Management, Kharkiv P. Vasylenko National Technical University of Agriculture (44 Alchevskykh Str., Kharkiv, 61002, Ukraine)
Email: [email protected]

List of references in article

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