Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

Camara Kwasi Obeng; Peter Yeltulme Mwinlaaru; Isaac Kwesi Ofori

doi:10.1007/978-3-030-75556-0_32

Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

Camara Kwasi Obeng
, Peter Yeltulme Mwinlaaru
, Isaac Kwesi Ofori

Research output: Chapter in Book/Report/Conference proceeding › Chapter › peer-review

Abstract

Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth. Yet little attention has been paid to it in Sub-Saharan Africa (SSA). Motivated by this, we investigated the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991–2017, using the system GMM pooled estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though the region’s foreign value addition is less than its domestic value addition, the former’s impact on inclusive growth is higher. We recommend that policymakers of SSA countries should support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.

Original language	English
Title of host publication	The Palgrave Handbook of Africa's Economic Sectors
Publisher	Springer International Publishing
Pages	815-840
Number of pages	26
ISBN (Electronic)	9783030755560
ISBN (Print)	9783030755553
DOIs	https://doi.org/10.1007/978-3-030-75556-0_32
Publication status	Published - 1 Jan 2022
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Domestic value added
Foreign value added
Global value chain
Inclusive growth
Sub-Saharan Africa

Access to Document

10.1007/978-3-030-75556-0_32

Cite this

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abstract = "Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth. Yet little attention has been paid to it in Sub-Saharan Africa (SSA). Motivated by this, we investigated the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991–2017, using the system GMM pooled estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though the region{\textquoteright}s foreign value addition is less than its domestic value addition, the former{\textquoteright}s impact on inclusive growth is higher. We recommend that policymakers of SSA countries should support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.",

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T1 - Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

AU - Obeng, Camara Kwasi

AU - Mwinlaaru, Peter Yeltulme

AU - Ofori, Isaac Kwesi

N1 - Publisher Copyright: © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

PY - 2022/1/1

Y1 - 2022/1/1

N2 - Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth. Yet little attention has been paid to it in Sub-Saharan Africa (SSA). Motivated by this, we investigated the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991–2017, using the system GMM pooled estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though the region’s foreign value addition is less than its domestic value addition, the former’s impact on inclusive growth is higher. We recommend that policymakers of SSA countries should support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.

AB - Global value chain (GVC) participation has been identified as one of the means by which developing countries can attain inclusive growth. Yet little attention has been paid to it in Sub-Saharan Africa (SSA). Motivated by this, we investigated the effect of GVC participation on inclusive growth for 19 SSA countries for the period 1991–2017, using the system GMM pooled estimator. The results show that GVC participation drives inclusive growth through employment creation. We find that though the region’s foreign value addition is less than its domestic value addition, the former’s impact on inclusive growth is higher. We recommend that policymakers of SSA countries should support downstream industries to acquire technologies while incentivizing and attracting upstream industries into their countries.

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KW - Global value chain

KW - Inclusive growth

KW - Sub-Saharan Africa

UR - https://www.scopus.com/pages/publications/85133481987

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BT - The Palgrave Handbook of Africa's Economic Sectors

PB - Springer International Publishing

ER -

Global Value Chain Participation and Inclusive Growth in Sub-Saharan Africa

Abstract

UN SDGs

Keywords

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