The Impact of Global Value Chain on Income Inequality: A PQR Analysis
İsmail Tamboğa & Taner Güney
What the paper says
The main objective of this study is to reveal the effects of the global value chain (GVC) on income inequality.For this purpose, data from 52 countries covering 1995-2020 have been used.Cointegration tests were applied to determine the cointegration relationship between the variables included in the analyses, and a cointegration relationship was detected among the variables.The panel quantile regression (PQR) method was preferred to estimate the long-term coefficients of variables with cointegration relationships.According to the PQR estimation results, GVC participation improves income distribution across all quantiles.Although the inequality-reducing effect of GVC participation is confirmed, it was determined that it is more potent in quantiles where the income distribution is more equal.Panel causality tests revealed a bidirectional causality relationship between GVC indicators and income inequality.The findings emphasise that countries with distorted income distribution should mainly focus on high value-added stages in integration into GVC and developing inclusive social policies.
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.50 × 0.4 = 0.20 |
| M · momentum | 0.50 × 0.15 = 0.07 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.