Acta Oeconomica
Volume/Issue:
Volume 73: Issue 2
Determinants of domestic value added in exports of the EU countries
Authors:
Zuzana Kittová Department of International Trade, Faculty of Commerce, University of Economics in Bratislava, Dolnozemská cesta 1, 852 35 Bratislava, Slovakia

Search for other papers by Zuzana Kittová in
Current site
Google Scholar
PubMed Close
https://orcid.org/0000-0002-8903-4033
,
Dušan Steinhauser Department of International Trade, Faculty of Commerce, University of Economics in Bratislava, Dolnozemská cesta 1, 852 35 Bratislava, Slovakia

Search for other papers by Dušan Steinhauser in
Current site
Google Scholar
PubMed Close
https://orcid.org/0000-0003-0708-9020
, and
Kristína Drieniková Department of International Trade, Faculty of Commerce, University of Economics in Bratislava, Dolnozemská cesta 1, 852 35 Bratislava, Slovakia

Search for other papers by Kristína Drieniková in
Current site
Google Scholar
PubMed Close
https://orcid.org/0000-0002-1976-3521
Pages:
285–303
Online Publication Date:
20 Jun 2023
Publication Date:
20 Jun 2023
Article Category:
Research Article
DOI:
https://doi.org/10.1556/032.2023.00017
Keywords:
domestic value added in exports; determinants; global value chains (GVCs); international trade;
Restricted access

Abstract

Economies, including the European Union, face the risk of losing ability to maintain their competitive positions on the global scale and of related inability to generate value added up to satisfactory degree. We therefore examine factors assumedly having positive impact on the domestic value added in exports, as a recently introduced key indicator of country's export competitiveness, reported in the TiVA database. The main aim of our paper is to test, for the selected countries, the relationships of the domestic value added in exports with the following factors: (1) number of patent applications per million inhabitants, (2) foreign direct investment per capita, (3) business expenditure on research and development as a percentage of GDP and (4) resource productivity as control variable. We prove by panel data analysis that the domestic value added in exports increases with an increase in all deployed independent variables as well as in control variable.

  • Adarov, A. – Stehrer, R. (2019): Implications of Foreign Direct Investment, Capital Formation and Its Structure for Global Value Chains. wiiw Working Paper, No. 170. Vienna.

    • Search Google Scholar
    • Export Citation

  • Adkins, L. C. – Waters, M. S. – Hill, R. C. (2015): Collinearity Diagnostics in Gertl. Economics Working Paper Series, No.1506, Oklahoma State University, Department of Economics and Legal Studies in Business.

    • Search Google Scholar
    • Export Citation

  • Apostolov, M. – Scagnelli, S. D. – Vasile, L. (2020): Global Supply Chains: European Union, Euro Area and New Member States. Global Business Review, 23(4): 1–19.

    • Search Google Scholar
    • Export Citation

  • Aspen Institute Central Europe (2019): Kam kráčíš, Česko? 2018 ‒ Panel Konkurenceschopnost (Where are You Going, Czech Republic? 2018 − Competitiveness Panel). https://www.youtube.com/watch?v=wFmPAy0bwxY&list=PLk4X31s7N1fsoZUqgRHpMe2R_1s_cCu7C&index=2.

    • Search Google Scholar
    • Export Citation

  • Baláž, P. – Zábojník, S. – Harvánek, L. (2020): China's Expansion in International Business: The Geopolitical Impact on the World Economy. Palgrave Macmillan.

    • Search Google Scholar
    • Export Citation

  • Baldwin, R. (2013): Trade and Industrialisation After Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters. In: Feenstra, R. C. – Taylor, A. M. (eds): Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century. Chicago: University of Chicago Press, pp. 165–212.

    • Search Google Scholar
    • Export Citation

  • Barta, G. − Czirfusz, M. − Kukely, G. (2008): Re-Industrialization in the World and in Hungary. European Spatial Research and Policy, 15(2): 5–26.

    • Search Google Scholar
    • Export Citation

  • Bayramoglu, A. T. – Abasiz, T. (2018): Foreign Direct Investment, Technological Innovation, and Export Performance: Empirical Evidence from Developing Asia. In: Malepati, V. – Gowri, C. M. (eds): Foreign Direct Investments (FDIs) and Opportunities for Developing Economies in the World Market. IGI Global, pp. 1–24.

    • Search Google Scholar
    • Export Citation

  • Blomström, M. – Kokko, A. (1998): Multinational Corporations and Spillovers. Journal of Economic Surveys, 12(2): 247–277.

  • Caraballo, J. G. – Jiang, X. (2016): Value-Added Erosion in Global Value Chains: An Empirical Assessment. Journal of Economic Issues, 50(1): 288–296.

    • Search Google Scholar
    • Export Citation

  • Cottrell, A. – Lucchetti, R. (2021): Gretl User's Guide. http://gretl.sourceforge.net/gretl-help/gretl-guide.pdf.

  • Courvisanos, J. (2012): Innovation. In: King, J. E. (eds): The Elgar Companion to Post Keynesian Economics. (2nd ed.) Cheltenham: Edward Elgar, pp. 294–299.

    • Search Google Scholar
    • Export Citation

  • Dhéret, C. (2016): Supporting Europe’s New Phase of Re-Industrialisation. Ekonomiaz - Revista Vasca de Economía. Gobierno Vasco Basque Government, 89(01): 118–141.

    • Search Google Scholar
    • Export Citation

  • Dollar, D. – Khan, B. – Pei, J. (2019): Should High Domestic Value Added in Exports be an Objective of Policy? In: Dollar, D. – Ganne, E. – Stolzenburg, V. – Wang, Z. (eds): Global Value Chain Development Report 2019: Technological Innovation, Supply Chain Trade, and Workers in a Globalized World. Washington, D.C.: World Bank Group, pp. 141–153.

    • Search Google Scholar
    • Export Citation

  • Duan, Y. – Yang, C. – Zhu, K. – Chen, X. (2012): Does the Domestic Value Added Induced by China’s Exports Really Belong to China? China & World Economy, 20(5): 83–102.

    • Search Google Scholar
    • Export Citation

  • European Commission (2014): For a European Industrial Renaissance. COM(2014) 14, Brussels.

  • Eurostat (2019): Patent Applications to the EPO by Priority Year [pat_ep_ntot]; Business Expenditure on R&D (BERD) by NACE Rev. 2 Activity [rd_e_berdindr2]. http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=pat_ep_ntot&lang=en; http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=rd_p_perslf&lang=en.

    • Search Google Scholar
    • Export Citation

  • Eurostat (2021): Resource Productivity [env_ac_rp]. https://ec.europa.eu/eurostat/databrowser/view/ENV_AC_RP__custom_1077461/default/table?lang=en.

    • Search Google Scholar
    • Export Citation

  • Fujii-Gambero, G. – García-Ramos, M. (2015): Revisiting the Quality of Exports. Journal of Economic Structures, 4(1): 1–17.

  • Fujii-Gambero, G. – Tovar, R. G. – García-Ramos, M. (2020): Una Tipología de la Inserción de las Economías en las Redes Globales de Comercio en Valor Agregado para las Exportaciones (A Typology of the Insertion of Investments in Global Export Trade Networks in Value Added). Trimestre Economico, 87(347): 731–758.

    • Search Google Scholar
    • Export Citation

  • Hagemejer, J. – Mućk, J. (2019): Export-Led Growth and its Determinants: Evidence from Central and Eastern European Countries. The World Economy, 7(42): 1994–2025.

    • Search Google Scholar
    • Export Citation

  • Hsiao, C. (2014): Analysis of Panel Data. (3rd ed.) New York: Cambridge University Press.

  • Iozia, E. M. − Leiriao, J. C. (2014): Opinion of the European Economic and Social Committee on the Reshoring of EU Industries in the Framework of Reindustrialization. Official Journal of the European Union, CCMI/120. https://www.eesc.europa.eu/en/our-work/opinions-information-reports/opinions/reshoring-eu-industries-framework-reindustrialisation.

    • Search Google Scholar
    • Export Citation

  • Johnson, R. C. – Noguera, G. (2012): Fragmentation and Trade in Value Added over Four Decades. NBER Working Paper, No. 18186.

  • Johnson, R. C. – Noguera, G. (2017): A Portrait of Trade in Value Added over Four Decades. The Review of Economics and Statistics, 99(5): 896–911.

    • Search Google Scholar
    • Export Citation

  • Johnson, R. C. (2014): Five Facts about Value-Added Exports and Implications for Macroeconomics and Trade Research. Journal of Economic Perspectives, 28(2): 119–142.

    • Search Google Scholar
    • Export Citation

  • Kašťáková, E. – Ružeková, V. (2019): Medzinárodné obchodné operácie (International Business Operations). Bratislava: Vydavateľstvo EKONÓM.

    • Search Google Scholar
    • Export Citation

  • Kersan-Škabić, I. (2017): Trade in Value Added (TiVA) in EU New Member States (EU NMS). Croatian Economic Survey, 19(2): 105–133.

  • Kersan-Škabić, I. (2019): The Drivers of Global Value Chain (GVC) Participation in EU Member States. Economic Research – Ekonomska Istraživanja, 32(1): 1204–1218.

    • Search Google Scholar
    • Export Citation

  • Kittová, Z. – Steinhauser, D. (2020): Science, Technology and Export ‒ the EU Case. In: Popkova, E. G. – Sergi, B. S. (eds): Artificial Intelligence: Anthropogenic Nature vs. Social Origin. Cham: Springer International Publishing, pp. 519–534.

    • Search Google Scholar
    • Export Citation

  • Koch, P. (2021): Economic Complexity and Growth: Can Value-Added Exports Better Explain the Link? Economics Letters, No. 198.

  • Kordalska, A. – Olczyk, M. (2021): New Patterns in the Position of CEE Countries in Global Value Chains: Functional Specialisation Approach. Oeconomica Copernicana, 12(1): 35–52.

    • Search Google Scholar
    • Export Citation

  • Krugman, P. (1994): Competitiveness: A Dangerous Obsession. Foreign Affairs, 73(2): 28–44.

  • Krugman, P. (2020): The Case for Permanent Stimulus. In: Baldwin, R. – di Mauro, B. W. (eds): Mitigating the COVID Economic Crisis: Act Fast and Do Whatever It Takes. London: CEPR Press, pp. 213–219.

    • Search Google Scholar
    • Export Citation

  • Kutan, A. M. − Vukšić, G. (2007): Foreign Direct Investment and Export Performance: Empirical Evidence. Comparative Economic Studies, 49(3): 430–445.

    • Search Google Scholar
    • Export Citation

  • Lengyel, I. − Vas, Z. − Szakalné Kanó, I. − Lengyel, B. (2017): Spatial Differences of Reindustrialization in a Post-Socialist Economy: Manufacturing in the Hungarian Counties. European Planning Studies, 25(8): 1416–1434.

    • Search Google Scholar
    • Export Citation

  • Lukáčik, M. – Lukáčiková, A. – Szomolányi, K. (2011): Ekonometrické modelovanie v programoch EViews a Gretl (Econometric Modeling in EViews and Gretl). Bratislava: Vydavateľstvo EKONÓM.

    • Search Google Scholar
    • Export Citation

  • Lukáčiková, A. (2013): GRETL vo výučbe panelových dát (GRETL in Teaching of Panel Data). In: Reiff, M. (ed.): Využitie kvantitatívnych metód vo vedecko-výskumnej činnosti a v praxi X. Bratislava: Vydavatel’stvo EKONÓM.

    • Search Google Scholar
    • Export Citation

  • LUSA (2021): EU/Presidency: EU Should Start Reindustrialisation Process to Boost Competitiveness – CIP. https://www.lusa.pt/ppue2021/1661/article/30737457/eu-presidency-eu-should-start-reindustrialisation-process-to-boost-competitiveness-cip%C5%88.

  • Markusen, J. R. (2002): Multinational Firms and the Theory of International Trade. Cambridge: MIT Press.

  • Melitz, M. (2003): The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica, 71(6): 1695–1725.

    • Search Google Scholar
    • Export Citation

  • Mitic, B. – Ivić, M. (2016): The Impact of Foreign Direct Investment on Export Performance: Case of European Transition Economies. Independent Journal of Management & Production, 7(3): 771–785.

    • Search Google Scholar
    • Export Citation

  • Młody, M. (2016): Reindustrialisation of the European Union Member States in the of Reshoring. International Business and Global Economy, 35(1): 455-467.

    • Search Google Scholar
    • Export Citation

  • Mukhtarov, S. – Alalawneh, M. M. – Ibadov, E. – Huseynli, A. (2019): The Impact of Foreign Direct Investment on Exports in Jordan: An Empirical Analysis. Journal of International Studies, 12(3): 38–47.

    • Search Google Scholar
    • Export Citation

  • Nagy, B. − Lengyel, I. − Udvari, B. (2020): Reindustrialization Patterns in the Post-Socialist EU Members: A Comparative Study between 2000 and 2017. European Journal of Comparative Economics, 17(2): 253–275.

    • Search Google Scholar
    • Export Citation

  • Nițescu, D. C. – Murgu, V. – Căpriță, E. D. (2019): Impact of Labor, FDI and R&D on Business Sustainability. Amfiteatru Economic, 21(S13): 795–815.

    • Search Google Scholar
    • Export Citation

  • OECD (2013): Knowledge-Based Capital and Upgrading in Global Value Chains. In: Supporting Investment in Knowledge Capital, Growth and Innovation. OECD Publishing, pp. 215–252.

    • Search Google Scholar
    • Export Citation

  • OECD (2016): Trade in Value Added. In: OECD Factbook 2015–2016: Economic, Environmental and Social Statistics. OECD Publishing, pp. 215–252.

    • Search Google Scholar
    • Export Citation

  • OECD (2019a): Guide to OECD's Trade in Value Added (TiVA) Indicators, 2018 Edition. OECD, Directorate for Science, Technology and Innovation. https://www.oecd.org/sti/ind/tiva/TiVA2018_Indicators_Guide.pdf.

    • Search Google Scholar
    • Export Citation

  • OECD (2019b): Trade in Value Added (TiVa) – Domestic Value Added Share of Gross Exports (TiVa - EXGR DVASH). https://stats.oecd.org/Index.aspx?DataSetCode=TIVA_2018_C1#.

    • Search Google Scholar
    • Export Citation

  • Olczyk, M. – Kordalska, A. (2017): Gross Exports Versus Value-Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries. Eastern European Economics, 55(1): 91–109.

    • Search Google Scholar
    • Export Citation

  • Pacáková, V. – Labudová, V. – Sipková, Ľ. – Šoltés, E. – Vojtková, M. (2009): Štatistické metódy pre ekonómov (Statistical Methods for Economists). Bratislava: Iura.

    • Search Google Scholar
    • Export Citation

  • Pavelka, Ľ. – Ružeková, V. – Zubaľová, Ľ. (2021): Inštitucionálna podpora financovania exportu a zahraničných investícií vo vybraných krajinách EÚ (Institutional Support for Exports and Foreign Investment Financing in Selected EU Countries). Praha: Leges.

    • Search Google Scholar
    • Export Citation

  • Porter, M. (1990): The Competitive Advantage of Nations. Harvard Business Review. https://hbr.org/1990/03/the-competitive-advantage-of-nations.

    • Search Google Scholar
    • Export Citation

  • Şener, S. – Sandoğan, S. E. (2011): The Effects of Science-Technology-Innovation on Competitiveness and Economic Growth. Procedia – Social and Behavioral Sciences, 24: 815–828.

    • Search Google Scholar
    • Export Citation

  • The Heritage Foundation (2021): 2021 Index of Economic Freedom. https://www.heritage.org/index/pdf/2021/book/02_2021_IndexOfEconomicFreedom_METHODOLOGY.pdf.

    • Search Google Scholar
    • Export Citation

  • UNCTADStat. (2019): Foreign Direct Investment: Inward Stock, Annual, US Dollars at Current Prices in Millions.

  • Vernon, R. (1979): The Product Cycle Hypothesis in a New International Environment. Oxford Bulletin of Economics and Statistics, 41(4): 255–267.

    • Search Google Scholar
    • Export Citation

  • Vrh, N. (2018): What Drives the Differences in Domestic Value Added in Exports between Old and New EU Member States? Economic Research − Ekonomska Istraživanja, 31(1): 645−663.

    • Search Google Scholar
    • Export Citation

  • Wang, J. – Ma, J. (2020): Measurement of National Innovation Driving Force and Its Promotion of High-Quality Development of Service. International Journal of Sustainable Development and Planning, 15(7): 1059–1065.

    • Search Google Scholar
    • Export Citation

  • Wang, T. – Bi, H. – Cai, Z. (2020): Empirical Analysis of Technological Sophistication of Exports in China’s Manufacturing Industries from the New Perspective of TFP. In: Patnaik, S. – Ip, A. – Tavana, M. – Jain, V. (eds): New Paradigm in Decision Science and Management. Advances in Intelligent Systems and Computing, Vol 1005. Springer, Singapore.

    • Search Google Scholar
    • Export Citation

  • Wang, Z. – Wei, S. – Zhu, K. (2018): Quantifying International Production Sharing at the Bilateral and Sector Levels. NBER Working Paper, No. 19677.

    • Search Google Scholar
    • Export Citation

  • World Bank Data Bank (2019): World Development Indicators. https://databank.worldbank.org/source/world-development-indicators#.

  • Xing, Y. (2020): Global Value Chains and the “Missing Exports” of the United States. China Economic Review, 61.

  • Collapse
  • Expand
Cover Acta Oeconomica
Acta Oeconomica Periodical of the Hungarian Academy of Sciences
Print ISSN:
0001-6373
Online ISSN:
1588-2659

Senior editors

Editors-in-Chief: István P. Székely, Dóra Győrffy

Editor(s): Judit Kálmán

Associate Editors

  • Péter Benczúr, Joint Joint Research Center, European Commission
  • Dóra Benedek, International Monetary Fund
  • Balázs Égert, OECD
  • Dániel Prinz, World Bank
  • Rok Spruk, University of Ljubljana, School of Economics and Business, Slovenia

Editorial Board

  • Anders Åslund, Georgetown University and Advisory Council of CASE, USA
  • István Benczes, Corvinus University of Budapest, Hungary 
  • Agnieszka Chłoń-Domińczak, SGH Warsaw School of Economics, Poland
  • Fabrizio Coricelli, University of Siena, Italy
  • László Csaba, Corvinus University of Budapest, Hungary and Central European University, Austria
  • Beáta Farkas, Faculty of Economics and Business Administration, University of Szeged, Hungary
  • Péter Halmai, Budapest University of Technology and Economics, and National University of Public Service, Hungary
  • Martin Kahanec, Central European University, Austria
  • Michael Landesmann, The Vienna Institute for International Economic Studies (WIIW), Austria
  • Péter Mihályi, Corvinus University of Budapest, Hungary
  • Debora Revoltella, European Investment Bank

Corvinus University of Budapest
Department of Economics
Fővám tér 8 Budapest, H-1093, Hungary
E-mail: judit.kalman@uni-corvinus.hu

Indexing and Abstracting Services:

  • CABELLS Journalytics
  • EconLit
  • Elsevier GEO Abstracts
  • GEOBASE
  • Index Copernicus
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • SCOPUS
  • Social Science Citation Index

 

2023  
Web of Science  
Journal Impact Factor 0.7
Rank by Impact Factor Q3 (Economics)
Journal Citation Indicator 0.23
Scopus  
CiteScore 1.4
CiteScore rank Q3 (Economics and Econometrics)
SNIP 0.385
Scimago  
SJR index 0.218
SJR Q rank Q4

Acta Oeconomica
Publication Model Hybrid
Submission Fee none
Article Processing Charge 900 EUR/article
Printed Color Illustrations 40 EUR (or 10 000 HUF) + VAT / piece
Regional discounts on country of the funding agency World Bank Lower-middle-income economies: 50%
World Bank Low-income economies: 100%
Further Discounts Editorial Board / Advisory Board members: 50%
Corresponding authors, affiliated to an EISZ member institution subscribing to the journal package of Akadémiai Kiadó: 100%
Subscription fee 2025 Online subsscription: 700 EUR / 768 USD
Print + online subscription: 820 EUR / 900 USD
Subscription Information Online subscribers are entitled access to all back issues published by Akadémiai Kiadó for each title for the duration of the subscription, as well as Online First content for the subscribed content.
Purchase per Title Individual articles are sold on the displayed price.

Acta Oeconomica
Language English
Size B5
Year of
Foundation		 1966
Volumes
per Year		 1
Issues
per Year		 4
Founder Magyar Tudományos Akadémia
Founder's
Address		 H-1051 Budapest, Hungary, Széchenyi István tér 9.
Publisher Akadémiai Kiadó
Publisher's
Address		 H-1117 Budapest, Hungary 1516 Budapest, PO Box 245.
Responsible
Publisher		 Chief Executive Officer, Akadémiai Kiadó
ISSN 0001-6373 (Print)
ISSN 1588-2659 (Online)

Monthly Content Usage

Abstract Views Full Text Views PDF Downloads
Oct 2024 161 1 1
Nov 2024 104 0 0
Dec 2024 65 2 4
Jan 2025 96 0 1
Feb 2025 115 1 2
Mar 2025 57 4 3
Apr 2025 0 0 0