International Production Networks and Economic Growth : The Case of the Western Balkan Countries

The globalization of the world economy has given rise to new trade patterns through the intensification of international production networks (IPNs). This phenomenon has enabled countries to undertake more in-depth specialization in niche parts of the production chain, with important benefits for the...

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Main Authors:	Shimbov, Bojan, Alguacil, Maite, Suárez, Celestino
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2016
Subjects:	economic growth international production networks processing trade panel data models
Online Access:	http://hdl.handle.net/10986/24180

id	okr-10986-24180
recordtype	oai_dc
spelling	okr-10986-241802021-05-25T10:54:34Z International Production Networks and Economic Growth : The Case of the Western Balkan Countries Shimbov, Bojan Alguacil, Maite Suárez, Celestino economic growth international production networks processing trade panel data models The globalization of the world economy has given rise to new trade patterns through the intensification of international production networks (IPNs). This phenomenon has enabled countries to undertake more in-depth specialization in niche parts of the production chain, with important benefits for their economic activity and growth. The Western Balkan countries are no exception. With their recent integration into global markets, an increasingly large share of their trade flows entail intermediate goods that are eventually processed and exported. This article analyzes the impact of different degrees of participation in IPNs on the economic performance of the Western Balkan countries, thereby testing the hypothesis that trade created by international fragmentation of production may generate effects on economic growth beyond the beneficial influence of total or final goods trade. The article focuses on the period 2002–2013. The results, using a set of panel data models, show that the degree of involvement in IPNs significantly affects economic performance, which partly explains the observed differences in the growth rates of the Western Balkan countries. We also find that the positive influence of processing trade on economic growth is greater than the traditional gains of an increase in foreign demand. 2016-05-02T16:54:06Z 2016-05-02T16:54:06Z 2016-02-25 Journal Article Eastern European Economics 0012-8775 http://hdl.handle.net/10986/24180 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research Europe and Central Asia Eastern Europe Albania Bosnia and Herzegovina Croatia Macedonia, former Yugoslav Republic of Montenegro Serbia North Macedonia (Formerly the Former Yugoslav Republic of Macedonia)
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	economic growth international production networks processing trade panel data models
spellingShingle	economic growth international production networks processing trade panel data models Shimbov, Bojan Alguacil, Maite Suárez, Celestino International Production Networks and Economic Growth : The Case of the Western Balkan Countries
geographic_facet	Europe and Central Asia Eastern Europe Albania Bosnia and Herzegovina Croatia Macedonia, former Yugoslav Republic of Montenegro Serbia North Macedonia (Formerly the Former Yugoslav Republic of Macedonia)
description	The globalization of the world economy has given rise to new trade patterns through the intensification of international production networks (IPNs). This phenomenon has enabled countries to undertake more in-depth specialization in niche parts of the production chain, with important benefits for their economic activity and growth. The Western Balkan countries are no exception. With their recent integration into global markets, an increasingly large share of their trade flows entail intermediate goods that are eventually processed and exported. This article analyzes the impact of different degrees of participation in IPNs on the economic performance of the Western Balkan countries, thereby testing the hypothesis that trade created by international fragmentation of production may generate effects on economic growth beyond the beneficial influence of total or final goods trade. The article focuses on the period 2002–2013. The results, using a set of panel data models, show that the degree of involvement in IPNs significantly affects economic performance, which partly explains the observed differences in the growth rates of the Western Balkan countries. We also find that the positive influence of processing trade on economic growth is greater than the traditional gains of an increase in foreign demand.
format	Journal Article
author	Shimbov, Bojan Alguacil, Maite Suárez, Celestino
author_facet	Shimbov, Bojan Alguacil, Maite Suárez, Celestino
author_sort	Shimbov, Bojan
title	International Production Networks and Economic Growth : The Case of the Western Balkan Countries
title_short	International Production Networks and Economic Growth : The Case of the Western Balkan Countries
title_full	International Production Networks and Economic Growth : The Case of the Western Balkan Countries
title_fullStr	International Production Networks and Economic Growth : The Case of the Western Balkan Countries
title_full_unstemmed	International Production Networks and Economic Growth : The Case of the Western Balkan Countries
title_sort	international production networks and economic growth : the case of the western balkan countries
publisher	Taylor and Francis
publishDate	2016
url	http://hdl.handle.net/10986/24180
_version_	1764455856955457536

International Production Networks and Economic Growth : The Case of the Western Balkan Countries

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