International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2902
Status : Paper accepted
Language : English
Topic : Growth and Development
Presenter: Hüseyin Alperen Özer
Session : 4A Growth
Does Participating in Mining GVCs Lead to Lower Industrialization?
Does Participating in Mining GVCs 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
Theoretical and Practical Implications: Our study shows the differential impact of resource types on manufacturing growth through GVC participation. By doing so, regarding the role of resource-intensive industries on manufacturing value-added growth, we provide significant evidence of Dutch disease in case of mining industries. Methods and Data Sources: This study investigates whether participating in forward global value chains in fuel industries leads to a decline in manufacturing industry by using EXIOBASE-3 database and fixed effects method. Conclusions: Our empirical results indicate a positive relationship between forward 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
