Projects / Programmes
Determinants and effects of Slovenian firms' positioning in global value chains
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S186 |
Social sciences |
International commerce |
| Code |
Science |
Field |
| 5.02 |
Social Sciences |
Economics and Business |
global value chains, export dynamics, technological restructuring, innovation activities
Researchers (15)
Organisations (3)
Abstract
The dynamics of the world economy and as well as international trade are increasingly characterised by global value chains (GVCs), within which intermediate goods and services are traded in fragmented and internationally dispersed production processes. Integration into GVCs increases the probability of a company/economy to increase the pace of both economic growth and development. The analysis of the determinants and effects of the integration of Slovenian firms into GVCs is based on: (i) theoretical and empirical literature about the characteristics and economics of GVCs, which focuses predominantly on the macro-developmental aspects of GVCs' (ii) international trade models, which by using product differentiation, monopolistic competition and firm heterogeneity, explain firm's choice regarding the establishment and modality of a GVC. The firm namely can either produce intermediate products/components for its final products (vertical integration) by itself, or obtain intermediate products from independent external suppliers (outsourcing), where in addition the integration/outsourcing can take place at home or abroad.
Intermediate products represent the largest and increasing share of Slovenian exports, and are, thus, the main lever of the integration of Slovenian firms into international trade. Thus, the question of firms' integration in GVCs is of crucial importance for Slovenia. The objectives of research are to analyse:
a/ the stage of GVCs' integration in which Slovenian manufacturing industry is at the moment (at aggregate but primarily at sectoral level), and the dynamics of passing through individual phases;
b/ the extent/importance of individual modalities of integration into GVCs for Slovenian firms;
c/ the factors, determining the ability of a firm to integrate into various modalities of GVCs;
d/ the impact of integration into GVCs on firms' survival, value added, growth of sales, productivity, employment and exports;
e/ the impact of integration into GVCs on the dynamics and structure of firms', industries' and aggregate economy's value added, and on the technological restructuring of the economy;
f/ the impact of integration into GVCs on firms' exports growth, as well as intensive and extensive export margins (exports to sales ratio, types and diversity of export products, number of export markets);
g/ prepare a comparative analysis of the effects of firms' integration into GVCs on productivty, exports, and employment growth, as well as innovation and technological restructuring of the new EU member states;
h/ prepare policy proposals for a more intensive and development oriented integration of Slovenian firms into GVCs.
The aforementioned analysis will rely predominantly on micro (firm-level) data.
The research will encompass the following broader segments:
1. Overview of theories and empirical research from the field of GVCs,
2. Analysis of the position and changes in relative position of firms within the supply chain matrix,
3. Dynamics of firm integration into GVCs and its relevance for firms' performance (factors of firms' integration into various modalities of GVCs, intensity of integration into various modalities of GVCs and firms' performance),
4. International comparative analysis of the impact of integration into GVCs on value added composition of exports, productivity growth and technological restructuring of the new EU member states,
5. Impact of integration into GVCs on R&D spending, innovation activities and technological restructuring of Sloveniania firms,
6. Impact of firms' integration into GVCs on export dynamics, export duration and exports margins,
7. The integration of services firms into GVCs,
8. Policy proposals for more intensive and development-oriented integration of Slovenian firms into GVCs.
Significance for science
a/ Critical analysis of existing theoretical approaches to GVC analysis and interlinking the economics of GVCs with explanation of GVCs in the international trade models. b/ The first comprehensive application of input-output tables in the assessment of domestic value added in Slovenian exports and imports. c/ Analysis of the integration of Slovenian firms in GVCs based on combining various individual firm level data bases, which is the first analysis of this kind for new EU member states, and one of rare firm levele data based analysis of GVCs in general. In this context, all the analyses listed below represent a novelty in GVC analysis: - Defining the position and changes in the position of Slovenian manufacturing sector and industries within manufacturing in the supply chain matrix - Analysis of the relevance of Slovenian firms integration in GVCs for their performance, based on firm level data. - Analysis of factors of Slovenian firms' integration into various modalities of GVCs, based on firm level data. - Analysis of the dynamics of firms' value added with regards to intensity of integration into GVCs and the impact on economy's technological restructuring, based on firm level data. - Analysis of the impact of integration into GVCs on firms' export growth ans structure. - Analysis of the impact of GVC participation on export duration. - Effects of outsourcing and outward FDI on skill structure of Slovenian firms. d/ Analysis of integration of Slovenian service firms into GVCs, which is the first analysis of this kind. e/ Analysis of the impact of functional upgrading of firm's position in GVC on its value added, which is the first analysis of this kind for new EU member states. f/ Comparative analysis of the impact of integration into GVCs on productivity, employment and exports growth, on innovation activity and technological restructuring of of new EU member states' economies, which is the first analysis of this kind. g/ Placement of our findings in the global knowledge flow through our intensive international research co-operation via publication of research results in international journals and books. h/ Creation of original data-bases and knowledge, i.e. valuable resources available also to other researchers as well as to policy makers, business analysts and managers.
Significance for the country
Direct impact for economy and society a/ Integration in GVCs is increasingly dominant way of Slovenian firms' integration in international trade, on the exports as well as on the imports side. In the context of high dependence of Slovenian economy on the integration into global economy in general and on exports in particular, it is obvious that a detailed knowledge of the situation, trends and possibilities of Slovenian firms as far as integration in GVCs is concerned, is crucial for adopting both adequate economic policy measures and firms' development strategies in this area. b/ Proposing policy measures that lead to a development oriented integration of firms and entire economy in GVCs, and creation of own GVCs. c/ Identification of determinants that lead to a successful firm development oriented integration in GVCs, in the improvement of Slovenian firms' positions in GVCs and in creation of own GVCs. The research shows what is the relevance of various structural characteristics of firms in this context and what is the scope of various modalities of integration in GVCs. d/ Determining the impact of economic policy and of entire business environment on the successful integration of firms in GVCs. Indirect impact of the project for society a/ The involvement of the research team members in the Research Programs New development strategy of Slovenia as a member of the EU (P5-0096) and Slovenia and its actors in international relations and European integrations (P5-0177), in a number of other international and domestic research projects, studies and analyses that have been produced by the research team members for the Ministry of Economy, Ministry of Finance, Government Office for Development and European Affairs, SPIRIT, Chamber of of Commerce and Industry of Slovenia, a number of firms, participation of the research team members in varoius economic and government bodies etc. b/ Contribution to the creation of the knowledge needed in Slovenia for faster and more stable development. Findings contribute to the guidelines for the creation of economic policy measures and for the strengthening of competitiveness of firms and economy as a whole. c/ Promotion of Slovenia abroad via the presentations of research results at international scientific conferences, via the participation of the research team members in international research and consulting projects and teaching at universities abroad. d/ The fact that most of the research team members are involved in the teaching process at the Faculty of Economics and Faculty of Social Sciences, as well as at other universities in Slovenia and abroad assures the transfer of research results to students.
Most important scientific results
Annual report
2014,
2015,
final report
Most important socioeconomically and culturally relevant results
Annual report
2014,
2015,
final report
