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Determinants of Participation in Manufacturing GVCs in Africa: The Role of Skills, Human Capital Endowment and Migration (Inglês)

This analysis assesses the role of skills, human capital endowment, and migration as determinants of Sub-Saharan Africa's participation in manufacturing global value chains. Due to lack of reliable data on skilled labor, skilled and unskilled labor contents in exports were generated from the Global Trade Analysis Project database. A panel of 23 countries for which data on skills and manufacturing global value chains are available for 19 subsectors was constructed. A fixed-effect gravity model was used to estimate the determinants of backward and forward global value chain participation. The estimates obtained from the sample are compared with global data covering 115 countries for benchmarking purposes. The results indicate that for economies in Sub-Saharan Africa, skilled labor seems to be the strongest determinant of participation in backward and forward global value chains. Similarly, initial human capital endowment has a strong positive impact on global value chain participation at the global level. However, countries with relatively high initial capital endowment benefit more by incorporating foreign value-added products in their manufacturing exports. Finally, countries that receive net inflows of migrants tend to engage better in backward and forward global value chains than those with net outflows of migrants. The findings suggest that policies to improve Sub-Saharan Africa’s integration in manufacturing global value chains should target: shifting from unskilled to skilled labor-intensive backward and forward global value chain activities; upgrading the quality of the labor force, since unskilled workers are so far the most available and the most used in manufacturing global value chains; investing in the quality of human capital; and promoting intraregional skills mobility.

Detalhes

  • Autor

    Yameogo,Nadege Desiree, Jammeh,Kebba

  • Data do documento

    2019/07/11

  • TIpo de documento

    Documento de trabalho sobre pesquisa de políticas

  • No. do relatório

    WPS8938

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    África,

  • Região

    África,

  • Data de divulgação

    2019/07/11

  • Disclosure Status

    Disclosed

  • Nome do documento

    Determinants of Participation in Manufacturing GVCs in Africa: The Role of Skills, Human Capital Endowment and Migration

  • Palavras-chave

    Cost of Doing Business; capital need; Fragile and Conflict Situations; Democratic Republic of Congo; changing nature of work; global value chain; natural resource endowment; skilled labor; country of origin; agriculture and service; inflow of migrants; place of origin; exchange of knowledge; production and export; export of products; share of import; Logistics Performance Index; total manufacturing export; fragmentation of production; global financial crisis; access to technology; individual country data; source of employment; design of policy; factor of production; effects of migration; labor force survey; effect of trade; general equilibrium model; global supply chain; economic migrant; intermediate input; gravity model; participation rate; production process; net migration; gross output; labor value; comparative advantage; fixed effect; estimation result; estimation technique; average distance; foreign input; foreign value; unskilled worker; total output; negative correlation; cognitive skill; diagonal matrix; Oil Export; manufacturing sector; resource endowments; standard error; domestic value; raw material; positive impact; global market; resource-rich country; correlation matrix; negative relationship; skill composition; trading partner; increasing trade; explanatory variable; net remittance; negative effect; initial capital; participating country; labor mobility; production chain; global trade; wood product; international student; relative performance; poor health; trade process; indirect value; gross exports; international production; market information; data capture; improved information; education level; professional worker; Workers' Compensation; Technology Diffusion; personal service; machine operator; worker type; oil exporter; statistical model; occupational classification; integration policy; job opportunities; trade pattern; job opportunity; skill set; experienced worker; migrant worker; trade flow; International Trade; pioneering work; problem-solving skill; model specification; asylum seeker; informal sector; high premium; low-productivity agriculture; future productivity; survival rate; trade statistic; operational skills; gravity equation; extensive use; transfer technology; trade figures; health component; global companies; manufacturing industry; development policy; geographic proximity; resource-poor country; foreign good; estimate impact; baseline model; youth population; comparative analysis; business environment; panel data; future worker; foreign country; open access; Regional Studies; summary statistic; global economy; positive correlation; positive relationship; correlation coefficient; small economy; trade opportunity; trade volume; industrial production; cross-country correlation; skill gap; net outflow; human capital; trade literature; empirical result; empirical evidence; low-skilled worker; short distance; import product; consistent estimate; foreign labor; descriptive statistic; emerging country; trading opportunities; literature review; domestic export

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