International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2902
Status : Paper published
Language : English
Topic : Growth and Development
Presenter: Hüseyin Alperen Özer
Session : 4A Growth
Does Participating in Mining Global Value Chains Lead to Lower Industrialization?
Does Participating in Mining Global Value Chains Lead to Lower Industrialization?
- Prof. Dr. Taner Turan (Gebze Technical University, Türkiye)
- Prof. Dr. Halit Yanıkkaya (Gebze Technical University, Türkiye)
- Hüseyin Alperen Özer (Gebze Teknik University, Türkiye)
Abstract
This study investigates whether participating in forward global value chains in mining industries leads to a decline in manufacturing industry by using EXIOBASE-3 database. Our empirical results indicate a positive relationship between forward Global Value Chain (GVC) participation in coal and crude petroleum and the growth of value-added in the manufacturing industry. In contrast, participation in GVCs for non-ferrous metal ores, iron ores, and stone, sand, and clay are found to have a significant negative effect on the growth of manufacturing value-added. Overall, our findings indicate that participation in mining forward GVCs presents more risks to the manufacturing industry compared to involvement in fossil fuels.
JEL codes: F14, F43, O11
Turan, Taner , Yanıkkaya, Halit, Özer, Hüseyin Alperen (2024). "Does Participating in Mining Global Value Chains Lead to Lower Industrialization?" in Proceedings of International Conference of Eurasian Economies 2024, pp.39-42, Bishkek, KYRGYZSTAN.
DOI: https://doi.org/10.36880/C16.02902
