Impact of Global Value Chains on Wage in Snake and Spider Configurations: An Empirical Analysis based on WIOD Countries Kokou Wotodjo Tozo & Jiong Gong

     Impact of Global Value Chains on Wage in Snake and Spider Configurations: An Empirical Analysis based on WIOD Countries

Author (s)

Kokou Wotodjo Tozo & Jiong Gong

Abstract

Whether and why one should ‘join a snake or a spider global value chain (GVC)’ is a debate that has received little attention in economic literature. In this paper, we try to compare the effects of the GVCs on wage in both configurations between working skill categories across many countries and industries. The aim pursued is to show which GVC generates better wage in a particular context –especially at skill, country development or industrial level. To distinguish spider from snake, we use the mean value of the weighted average number of border crossing (ABC) proposed by Muradov (2016) and its variant indexed by the UIBE Research Institute of GVC (RIGVC of UIBE). The sample is a panel data of 36 countries selected from the World Input-Output Database (WIOD), spanning 10 years (2000-2009) and 9 industries. By employing the Hausman-Taylor technique, we found that in general, GVCs bring positive gains to workers of all skill categories. These effects tend to be higher for high-skill workers and for those engaged in snake GVCs. Furthermore, the impacts appear more significant in snake for workers in developed countries. On the other hand, these effects are stronger only in spider in developing countries. At industry level, the pair snake-manufacturing display more significant estimates. These findings are meant to inform policymakers on the choice of GVCs. In fact, joining a GVC may require a minutious understanding of its configuration.

Key words: Global Value Chains (GVCs), Snake, Trade, Spider, Skill, Wage, offshoring, Border Crossing.

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Title: Impact of Global Value Chains on Wage in Snake and Spider Configurations: An Empirical Analysis based on WIOD Countries
Author:

Kokou Wotodjo Tozo & Jiong Gong

Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3736401
Media: Online
Volume: 4
Issue: 4
Acceptance Date: 31/03/2020
Date of Publication: 02/04/2020
PDF URL: https://ijsab.com/wp-content/uploads/515.pdf
Free download: Available
Page: 79-97
First Page: 79
Last Page: 97
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Kokou Wotodjo Tozo & Jiong Gong (2020), Impact of Global Value Chains on Wage in Snake and Spider Configurations: An Empirical Analysis based on WIOD Countries. International Journal of Science and Business, 4(4), 79-97. doi: https://doi.org/10.5281/zenodo.3736401

Retrieved from https://ijsab.com/wp-content/uploads/515.pdf

 

About Author (s)

Kokou Wotodjo Tozo (Corresponding Author) PhD, International Economics, School of International Trade and Economics, University of International Business and Economics (UIBE),Beijing, China.

Jiong Gong, Professor of Economics, School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China.

 

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DOI: https://doi.org/10.5281/zenodo.3736401

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