Intra-country inequality and involvement in GVCs: the case of EU-28

Duarte, Rosa (Universidad de Zaragoza) ; Espinosa Gracia, Adrian (Universidad de Zaragoza) ; Jiménez, Sofía (Universidad de Zaragoza) ; Sánchez Chóliz, Julio (Universidad de Zaragoza)

Resumen: Nowadays, production is configured around Global Value Chains, and countries’ involvement in those has become important objectives for achieving economic upgrading. However, social outcomes are neither equally distributed between countries, nor among social classes within countries. Indeed, GVCs and the potential gains of countries' involvement in them, yield uncertain implications of the effects of globalization on inequality within countries. In this context, the aim of this work is to analyze the link between the performance of countries in GVCs (measured trough participation and position) and the levels of intra-country inequality. In more depth, we focus on Europe (specifically, EU28 countries), as it offers a wide and cohesive scenario of developed countries in which to test the effects of linking into GVCs on internal inequalities. We get a positive effect of participation in GVCs on increasing intra-country inequality, while more upstream positions are linked to decreases in income inequality. Besides, if we differentiate by geographical area, Western and Southern European countries would achieve higher reductions in inequality than Northern countries by moving towards more upstream positions.

Idioma: Inglés

DOI: 10.33776/rem.vi64.7272

Año: 2023

Publicado en: REVISTA DE ECONOMIA MUNDIAL 64 (2023), 21-40
ISSN: 1576-0162

Financiación: info:eu-repo/grantAgreement/ES/DGA/S40-20R
Financiación: info:eu-repo/grantAgreement/ES/MCINN/PID2019-106822RB-I00
Financiación: info:eu-repo/grantAgreement/ES/MICINN/FPU17-03785

Tipo y forma: Article (Published version)

Área (Departamento): Área Fund. Análisis Económico (Dpto. Análisis Económico)