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  • Resource-Based or Innovation-Based Character of an Economy as a Factor Influencing the Effectiveness of Participation in Global Value Chains

Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Iuliia Bodrova
Resource-Based or Innovation-Based Character of an Economy as a Factor Influencing the Effectiveness of Participation in Global Value Chains
World Economy
(Bachelor’s programme)
10
2016
Global value chains are now in the center of the agenda for many countries, institutions and economic organizations but little is known about the impact insertion in them has on the economy. Using a new set of indicators, I estimate the effect that participation of countries with different models of envolvement in GVC has on the total added value, created by the industry and determine that backward pattern of participation is only beneficial for some innovative countries and, just as forward type of insertion, brings more value added if the country is specializing in these linkages. Yet, the majority of Russia’s linkages within GVC are forward-oriented which along with resource-based character of the economy prevents it from exploiting existing and potential competitive advantages. Thus, some aspects of the smart specialization approach need to be implemented to enhance companies’ upgrading in value chains and insure optimal distribution of public funds.

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