Measuring GVC in petrochemical industries: GVC participation and gloabl network analysis

Keywords: petrochemical industries, GVC analysis, GVC, participation, Trade-in-value-added, global network
Session Type: Virtual Paper Abstract
Day: Tuesday
Session Start / End Time: 3/1/2022 05:20 PM (Eastern Time (US & Canada)) - 3/1/2022 06:40 PM (Eastern Time (US & Canada))
Room: Virtual 69

Abstract

Existing GVC measurement model focuses on production sharing, not considering the demand aspect and empirical GVC case studies do not shed much light on inter-industry linkages. This study is trying to measure GVC participation of the petrochemical industry, which has active forward and backward linkages, and analyze the characteristics of its global network through a new GVC measurement model that includes demand aspects.
First, GVC participation and its changes vary depending on the characteristics of each country. Countries in the early stages of industrial development show high backward participation in the form of importing foreign value added. Countries with increasing self-sufficiency are characterized by the decrease of backward participation. European industrial countries and Asian countries which have grown rapidly since the 1990s are showing high forward and backward participation. Countries which have R&D competitiveness in high value-added industries have shown a high level of forward participation.
Next, the participants of the global network of petrochemical industry have differences in role and influence. Both in forward and backward linkage networks, the roles as suppliers and users are clearly distinguished. Also, inter-regional export and imports have increased globally with Asia's increasing importance. Few countries are supplying the value added to the entire network and the regional communities of network show strong local characteristics.
By understanding GVC participation in the petrochemical industry and its global network based on the characteristics of each country, it can be used to establish industrial strategies considering the stage of industrial development, inter-country relations, and GVC participation structure.