DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE?
This paper aims to estimate the impact of ICT and technological development of countries on supply chain trade. As proxy measures of supply chain trade, the author applies domestic value added (DVAFX) included in gross-foreign exports, and foreign-value added included in domestic exports (FVA) fr...
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Format: | Article |
Language: | deu |
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Faculty of Economics University of Rijeka
2022-12-01
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Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
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Online Access: | https://www.efri.uniri.hr/upload/1201202201-Zaninovi%C4%87-2022-2.pdf |
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author | Petra Adelajda Zaninović |
author_facet | Petra Adelajda Zaninović |
author_sort | Petra Adelajda Zaninović |
collection | DOAJ |
description | This paper aims to estimate the impact of ICT and technological development of
countries on supply chain trade. As proxy measures of supply chain trade, the
author applies domestic value added (DVAFX) included in gross-foreign exports,
and foreign-value added included in domestic exports (FVA) from the Eora MRIO
database while constructing the ICT variable by using confirmatory factor
analysis. Furthermore, as a proxy variable for the country’s technological
development, the author applies the economic complexity index developed by
Harvard’s Growth Lab, conducting her analysis based on the structural gravity
model estimated with the Poisson Pseudo-Maximum Likelihood Estimator
(PPML). Together with the standard gravity regressors, the model includes the
bilateral position of countries in the supply chain. Our panel dataset covers the
2000-2019 period, including 130 world countries. To control for the potential
source of endogeneity, the model includes reporter and partner country fixed
effects, yearly fixed effects, and country-pair fixed effects. The results confirm a
statistically significant relationship between the country’s technological
development and supply-chain trade. Technological development enables a
country to produce more complex, higher value-added products and thus to be
more upstream positioned in the supply chain. The more upstream the country is in
the supply chain, the higher the domestic value added is included in its exports. |
first_indexed | 2024-04-10T22:28:02Z |
format | Article |
id | doaj.art-fb356f5d7f6147cbabe3b664354f26f6 |
institution | Directory Open Access Journal |
issn | 1331-8004 1846-7520 |
language | deu |
last_indexed | 2024-04-10T22:28:02Z |
publishDate | 2022-12-01 |
publisher | Faculty of Economics University of Rijeka |
record_format | Article |
series | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
spelling | doaj.art-fb356f5d7f6147cbabe3b664354f26f62023-01-17T08:54:38ZdeuFaculty of Economics University of RijekaZbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu1331-80041846-75202022-12-0140231332710.18045/zbefri.2022.2.313DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE?Petra Adelajda ZaninovićThis paper aims to estimate the impact of ICT and technological development of countries on supply chain trade. As proxy measures of supply chain trade, the author applies domestic value added (DVAFX) included in gross-foreign exports, and foreign-value added included in domestic exports (FVA) from the Eora MRIO database while constructing the ICT variable by using confirmatory factor analysis. Furthermore, as a proxy variable for the country’s technological development, the author applies the economic complexity index developed by Harvard’s Growth Lab, conducting her analysis based on the structural gravity model estimated with the Poisson Pseudo-Maximum Likelihood Estimator (PPML). Together with the standard gravity regressors, the model includes the bilateral position of countries in the supply chain. Our panel dataset covers the 2000-2019 period, including 130 world countries. To control for the potential source of endogeneity, the model includes reporter and partner country fixed effects, yearly fixed effects, and country-pair fixed effects. The results confirm a statistically significant relationship between the country’s technological development and supply-chain trade. Technological development enables a country to produce more complex, higher value-added products and thus to be more upstream positioned in the supply chain. The more upstream the country is in the supply chain, the higher the domestic value added is included in its exports.https://www.efri.uniri.hr/upload/1201202201-Zaninovi%C4%87-2022-2.pdficttechnologysupply chain tradetrade in value-addedppml |
spellingShingle | Petra Adelajda Zaninović DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu ict technology supply chain trade trade in value-added ppml |
title | DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? |
title_full | DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? |
title_fullStr | DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? |
title_full_unstemmed | DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? |
title_short | DO ICT AND TECHNOLOGICAL DEVELOPMENT FACILITATE SUPPLY CHAIN TRADE? |
title_sort | do ict and technological development facilitate supply chain trade |
topic | ict technology supply chain trade trade in value-added ppml |
url | https://www.efri.uniri.hr/upload/1201202201-Zaninovi%C4%87-2022-2.pdf |
work_keys_str_mv | AT petraadelajdazaninovic doictandtechnologicaldevelopmentfacilitatesupplychaintrade |