662
Views
0
CrossRef citations to date
0
Altmetric
Development Economics

Economic growth through global value chains; new insight from exchange rate effects on the African economy

ORCID Icon, &
Article: 2318974 | Received 21 Mar 2023, Accepted 09 Feb 2024, Published online: 21 Feb 2024

References

  • Adusei, M., & Gyapong, E. Y. (2017). The impact of macroeconomic variables on exchangerate volatility in Ghana: The Partial Least Squares Structural Equation Modellingapproach. Research in International Business and Finance, 42, 1428–1444. https://doi.org/10.1016/j.ribaf.2017.07.081
  • Ahmed, S., Appendino, M., & Ruta, M. (2016). Global value chains and the exchange rateelasticity of exports. The B.E. Journal of Macroeconomics, 17(1), 1–21. https://doi.org/10.1515/bejm-2015-0130
  • Alhassan, A., Zoaka, J. D., & Ringim, S. H. (2021). Africa as headwaiter at the dining tableof global value chains: Do institutions matter for her participation? African Development Review, 33(3), 560–576. https://doi.org/10.1111/1467-8268.12592
  • Aloui, C., Hkiri, B., Hammoudeh, S., & Shahbaz, M. (2018). A multiple and partial waveletanalysis of the oil price, inflation, exchange rate, and economic growth nexus in Saudi Arabia. Emerging Markets Finance and Trade, 54(4), 935–956. https://doi.org/10.1080/1540496X.2017.1423469
  • Antwi, S., Issah, M., Patience, A., & Antwi, S. (2020). The effect of macroeconomicvariables on exchange rate: Evidence from Ghana. Cogent Economics & Finance, 8(1), 1821483. https://doi.org/10.1080/23322039.2020.1821483
  • Auboin, M., & Ruta, M. (2013). The relationship between exchange rates and international trade: A literature review. World Trade Review, 12(3), 577–605. https://doi.org/10.1017/S1474745613000025
  • Auer, R. A. (2015). Exchange rate pass-through, domestic competition, and inflation: Evidence from the 2005–08 revaluation of the Renminbi. Journal of Money, Credit and Banking, 47(8), 1617–1650. https://doi.org/10.1111/jmcb.12286
  • Auer, R. A., & Mehrotra, A. (2014). Trade linkages and the globalisation of inflation in Asia and the Pacific. Journal of International Money and Finance, 49, 129–151. https://doi.org/10.1016/j.jimonfin.2014.05.008
  • Avdjiev, S., Bruno, V., Koch, C., & Shin, H. S. (2019). The dollar exchange rate as aglobal risk factor: Evidence from investment. IMF Economic Review, 67(1), 151–173. https://doi.org/10.1057/s41308-019-00074-4
  • Baah-Boateng, W., & Twum, E. K. (2020). Pathways to the structural transformation of the Ghanaian economy-and some roadblocks. https://www.brookings.edu/blog/africa-in-focus/2020/09/03/pathways-to-structural-transformation-of-the-ghanaian-economy-and-some-roadblocks/
  • Bahmani-Oskooee, M., & Gelan, A. (2018). Exchange-rate volatility and international tradeperformance: Evidence from 12 African countries. Economic Analysis and Policy, 58, 14–21. https://doi.org/10.1016/j.eap.2017.12.005
  • Bayoumi, T., Appendino, M., Barkema, J., & Cerdeiro, D. (2018). Measuring competitiveness in a world of global value chains. IMF Working Papers, 18(229), 1. https://doi.org/10.2139/ssrn.3297650
  • Benito, G. R. G., Petersen, B., & Welch, L. S. (2019). The global value chain andinternalization theory. Journal of International Business Studies, 50(8), 1414–1423. https://doi.org/10.1057/s41267-019-00218-8
  • Benito, G. R. G., Dovgan, O., Petersen, B., & Welch, L. S. (2013). Offshore outsourcing: Adynamic, operation mode perspective. Industrial Marketing Management, 42(2), 211–222. https://doi.org/10.1016/j.indmarman.2012.08.003
  • Borin, A., & Mancini, M. (2019). Measuring what matters in global value chains and value-added trade. World Bank policy research working paper, (8804). https://doi.org/10.1596/1813-9450-8804
  • Boz, E., Gopinath, G., & Plagborg-Møller, M. (2019). Dollar invoicing and the heterogeneity of exchange rate pass-through. AEA Papers and Proceedings, 109, 527–532. https://doi.org/10.1257/pandp.20191009
  • Broda, C., & Weinstein, E. (2006). Globalization and the gains from variety. TheQuarterly Journal of Economics, 121(2), 541–585. https://doi.org/10.3386/w10314
  • Byrne, B. M. (2013). Structural equation modeling with Mplus: Basic concepts, applications, and programming. Routledge. https://doi.org/10.4324/9780203807644
  • Bussière, M., Gaulier, G., & Steingress, W. (2020). Global trade flows: Revisiting the exchange rate elasticities. Open Economies Review, 31, 25–78. https://doi.org/10.2139/ssrn.2878624
  • Caglayan, M., & Demir, F. (2014). Firm productivity, exchange rate movements, sources offinance, and export orientation. World Development, 54, 204–219. https://doi.org/10.1016/j.worlddev.2013.08.012
  • Casas, C. (2020). Industry heterogeneity and exchange rate pass-through. Journal of International Money and Finance, 106, 102182. https://doi.org/10.1016/j.jimonfin.2020.102182
  • Casas, C., Diez, F. J., Gopinath, G., & Gourinchas, P. (2017). Dominant currency paradigm: A new model for small open economies*. IMF Working Papers, 2017(264), A001. https://www.elibrary.imf.org/view/journals/001/2017/264/article-A001-en.xml.
  • Casella, B., Bolwijn, R., Moran, D., & Kanemoto, K. (2019). UNCTAD insights: Improvingthe analysis of global value chains: the UNCTAD-Eora Database. Transnational Corporations, 26(3), 115–142. https://doi.org/10.18356/3aad0f6a-en
  • Chinn, M. D., & Ito, H. (2006). What matters for financial development? Capital controls, institutions, and interactions. Journal of Development Economics, 81(1), 163–192. https://doi.org/10.1016/j.jdeveco.2005.05.010
  • Contractor, F. J., Kumar, V., Kundu, S. K., & Pedersen, T. (2010). Reconceptualizing the firm in a world of outsourcing and offshoring: The organizational and geographical relocation of high-value company functions. Journal of Management Studies, 47(8), 1417–1433. https://doi.org/10.1111/j.1467-6486.2010.00945.x
  • De Backer, K., & Flaig, D. (2017). The future of global value chains: Business as usual or “anew normal”? OECD Science, Technology and Industry Policy Papers, No. 41, OECD Publishing, Paris, https://doi.org/10.1787/d8da8760-en. https://doi.org/10.1787/23074957
  • De Marchi, V., Di Maria, E., & Ponte, S. (2014). Multinational firms and the management of global networks: Insights from global value chain studies. In Orchestration of the Global Network Organization (Advances in International Management, Vol. 27) (pp. 463–486). Leeds: Emerald Group Publishing Limited. https://doi.org/10.1108/s1571-502720140000027009
  • De Soyres, F., Frohm, E., Gunnella, V., & Pavlova, E. (2018). Bought, sold, and bought again: The impact of complex value chains on export elasticities. World Bank, Washington, DC. https://doi.org/10.1596/1813-9450-8535
  • Del Prete, D., Giovannetti, G., & Marvasi, E. (2018). Global value chains: New evidence forNorth Africa. International Economics, 153, 42–54. https://doi.org/10.1016/j.inteco.2017.03.002
  • Elsherif, M., & Mohieldin, M. (2020). The dynamic interaction of exchange rates and international trade flows in the MENA region: GARCH analysis. In Economic Research. Forum: Giza, Egypt. https://erf.org.eg/app/uploads/2020/09/1600353215_764_1474146_180_erf26th_elsherifmohieldin.pdf.
  • Edwards, L., & Hlatshwayo, A. (2020). Exchange rates and firm export performance in SouthAfrica. WIDER Working Paper. UNU-WIDER. https://doi.org/10.35188/unu-wider/2020/758-3.
  • Foster-McGregor, N., Kaulich, F., & Stehrer, R. (2015). Global value chains in Africa. http://www.merit.unu.edu/publications/wppdf/2015/wp2015-024.pdf
  • Genevieve, G., Frimpong, J. M., & Kwame, M. (2023). Moderating remittance and economicgrowth relationship with exchange rate: What new can we learn from Africa’seconomy? Cogent Economics & Finance, 11(1), 1–31. https://doi.org/10.1080/23322039.2023.2167577
  • Gereffi, G. (1999). International trade and industrial upgrading in the apparel commoditychain. Journal of International Economics, 48(1), 37–70. https://doi.org/10.1016/s0022-1996(98)00075-0
  • Gereffi, G., Humphrey, J., & Sturgeon, T. J. (2005). The governance of global value chains. Global Value Chains and Development, 2(1), 108–134. https://doi.org/10.1017/9781108559423.005
  • Gereffi, G., Humphrey, J., Kaplinsky, R., & Sturgeon, T. J. (2001). Introduction: Globalisation, value chains, and development. IDS Bulletin, 32(3), 1–8. https://doi.org/10.1111/j.1759-5436.2001.mp32003001.x
  • Georgiadis, G., Grab, J., & Khalil, M. (2020). Global value chain participation and exchange rate pass-through. Deutsche Bundesbank Discussion Paper No. 67/2020, Available at SSRN: https://ssrn.com/abstract=3767294 or http://dx.doi.org/10.2139/ssrn.3767294.
  • Goya, D. (2020). The exchange rate and export variety: A cross-country analysis with longpanel estimators. International Review of Economics & Finance, 70, 649–665. https://doi.org/10.1016/j.iref.2020.07.001
  • Guechati, I., & Chami, M. (2021). Impact of the exchange rate on economic growth in Morocco. French Review of Economics and Management, 2, 10. https://doi.org/10.5281/zenodo.5570913
  • Gyeke-Dako, A., Oduro, A. D., Turkson, F. E., Baffour, P. T., & Abbey, E. N. (2017). Ghana’s participation in global value chains: The employment effects. SwissNational Science Foundation. https://www.wti.org/media/filer_public/ed/ef/edefaa16-2e4b-4abf-92bb-66c3c23a9d89/wp_2017_05.pdf.
  • Hagemejer, J., Hałka, A., & Kotłowski, J. (2022). Global value chains and exchange ratepass-through—the role of non-linearities. International Review of Economics & Finance, 82, 461–478. https://doi.org/10.1016/j.iref.2022.05.009
  • Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis. Pearson.
  • Humphrey, J. (2014). Internalisation theory, global value chain theory and sustainabilitystandards. International Business and Sustainable Development (Progress in International Business Research, Vol. 8) (pp. 91–114). Leeds: Emerald Group Publishing Limited. https://doi.org/10.1108/s1745-8862(2013)0000008010
  • Inyang, N., & Effiong, U. (2021). Exchange Rate Effect on Import Volume in Nigeria (1981 – 2019). International Journal of Economics and Management Studies, 8(2), 30–40. https://doi.org/10.14445/23939125/ijems-v8i2p105
  • Johnson, R. C. (2018). Measuring global value chains. Annual Review of Economics, 10(1), 207–236. https://doi.org/10.1146/annurev-economics-080217-053600
  • Kano, L. (2018). Global value chain governance: A relational perspective. Journal of International Business Studies, 49(6), 684–705. https://doi.org/10.1057/s41267-017-0086-8
  • Kearns, J., & Patel, N. (2016). Does the financial channel of exchange rates offset the tradechannel? BIS Quarterly Review, December 2016, 19. https://ssrn.com/abstract=2888240.
  • Kowalski, P., Lopez Gonzalez, J., Ragoussis, A., & Ugarte, C. (2015). Participation ofdeveloping countries in global value chains: Implications for trade and trade-related policies. OECD Trade Policy Papers. OECD Publishing. https://doi.org/10.1787/5js33lfw0xxn-en
  • Louati, A., Echaoui, A., & Mouatassim, A. (2022). The exchange rate volatility and Moroccan exports: An empirical investigation. International Journal of Business, Economics and Management, 9(4), 109–120. https://doi.org/10.18488/62.v9i4.3070
  • Leigh, D., Lian, W., Poplawski-Ribeiro, M., Szymanski, R., Tsyrennikov, V., & Yang, H. (2017). Exchange rates and trade: A disconnect? IMFWorking Paper No. 17/58. International Monetary Fund (IMF). https://doi.org/10.5089/9781475587494.001
  • Marcolin, L., Miroudot, S., & Squicciarini, M. (2016). GVCs, jobs and routine content of occupations. OECD Trade Policy Papers, No. 187. OECD Publishing. https://doi.org/10.1787/5jm0mq7kr6s8-en
  • Mayer, T., & Steingress, W. (2020). Estimating the effect of exchange rate changes on totalexports. Journal of International Money and Finance, 106, 102184. https://doi.org/10.1016/j.jimonfin.2020.102184
  • Narula, R., & Wahed, M. S. (2016). The dominant presence of MNES in agro-food GVCs: Implications for the developing countries. Food Security and Sustainability, 1, 71–88. https://doi.org/10.1007/978-3-319-40790-6_4
  • Nuhu, P., & Bukari, D. (2021). An analysis of export, import and exchange rate oscillation inGhana. International Journal of Economic Policy Studies, 15(2), 301–327. https://doi.org/10.1007/s42495-021-00060-7
  • Obstfeld, M., & Rogoff, K. S. (2005). Global current account imbalances and exchange rate adjustments. Brookings Papers on Economic Activity, 2005(1), 67–146. https://doi.org/10.1353/eca.2005.0020
  • Osei, R. D., Atta-Ankomah, R., & Lambon-Quayefio, M. (2020). Structural transformation and inclusive growth in Ghana (No. 2020/37). WIDER Working Paper. The United Nations University World Institute for Development Economics Research (UNU- WIDER). https://doi.org/10.35188/UNU-WIDER/2020/794-1
  • Ogunleye, E. K. (2014). Global value chain development and structural transformation in Nigeria. Africa Economic Brief, 5(2), 1–12.
  • Patel, N., Wang, Z., & Wei, S.-J. (2019). Global value chains and effective exchange rates at the country-sector level. Journal of Money, Credit and Banking, 51(S1), 7–42. https://doi.org/10.1111/jmcb.12670
  • Petersen, B., Welch, L. S., & Benito, G. R. G. (2010). Managing the internalisation process. Management International Review, 50(2), 137–154. https://doi.org/10.1007/s11575-010-0031-6
  • Prasad, E. S., Rogoff, K., Wei, S.-J., & Kose, M. A. (2007). Financial globalization, growth, and volatility in developing countries. Globalization and Poverty, 457–509. ISBN: 0-226-31794-3. https://doi.org/10.7208/chicago/9780226318004.003.0012
  • Sato, K., Shimizu, J., Shrestha, N., & Zhang, S. (2016). Industry-specific exchange ratevolatility and intermediate goods trade in Asia. Scottish Journal of Political Economy, 63(1), 89–109. https://doi.org/10.1111/sjpe.12112
  • Sato, K., & Zhang, S. (2017). Exchange rate volatility, exports and global value chains. https://www. econ. ynu. ac. jp/cessa/english/publication/others. html.
  • Sato, K., & Zhang, S. (2019). Do exchange rates matter in global value chains?. RIETI Discussion Paper Series 19-E-059. https://www.rieti.go.jp/jp/publications/dp/19e059.pdf.
  • Sako, M., & Zylberberg, E. (2017). Supplier strategy in global value chains: Shaping governance and profiting from upgrading. Socio-Economic Review, 17(3), 687–707. https://doi.org/10.1093/ser/mwx049
  • Strange, R., & Newton, J. (2006). Stephen Hymer and the externalization of production. International Business Review, 15(2), 180–193. https://doi.org/10.1016/j.ibusrev.2005.07.007
  • Tang, H. C. (2014). Exchange rate volatility and intra-Asia trade: Evidence by type of goods. The World Economy, 37(2), 335–352. https://doi.org/10.1111/twec.12095
  • Van Biesebroeck, J., & Mensah, E. B. (2019). The extent of GVC engagement in sub-Saharan Africa. World Bank. https://doi.org/10.1596/1813-9450-8937
  • Wang, X., Wu, H., Li, L., & Liu, L. (2022). Uncertainty, GVC participation, and the export of Chinese Firms. Journal of Economic Surveys, 36(3), 634–661. https://doi.org/10.1111/joes.12462
  • World Bank. (2019). World development report 2020: Trading for development in the age of global value chains. World Bank. https://doi.org/10.1596/978-1-4648-1457-0
  • Worldbank Development Indicators. (2022). https://databank.worldbank.org/source/world-development-indicators.
  • Wu, K., Zhu, J., Xu, M., & Yang, L. (2020). Can crude oil drive the comovements in theinternational stock market? Evidence from partial wavelet coherence analysis. The North American Journal of Economics and Finance, 53, 101194. https://doi.org/10.1016/j.najef2020.101194
  • Yussif, A.-R. B., Onifade, S. T., Ay, A., Canitez, M., & Bekun, F. V. (2022). Modeling thevolatility of exchange rate and international trade in Ghana: Empirical evidence fromGARCH and EGARCH. Journal of Economic and Administrative Sciences. ahead-of-print. https://doi.org/10.1108/JEAS-11-2020-0187
  • Ziemann, V., & Guérard, B. (2017). Reaping the benefits of global value chains in Turkey. OECD Economics Department Working Papers, No. 1366. OECD Publishing. https://doi.org/10.1787/d054af64-en