DETERMINANT FACTORS OF INSERTION IN GLOBAL VALUE CHAINS: AN ANALYSIS OF THE MINING INDUSTRY PARTICIPATION
DOI:
https://doi.org/10.18568/internext.v15i3.583Keywords:
Global Value Chains, Participation, Mineral Industry, Panel Data, Fixed Effect ModelAbstract
Objective: This study aims to investigate the factors that contribute to the participation of the global mining industry in global value chains (GVCs).
Method: With an explanatory nature and a quantitative approach, this study uses multiple regression as a statistical technique using the Fixed Effect Model. The data structure is in a panel, referring to 62 countries, and corresponds to the period from 2001 to 2015.
Main results: The results show that 77% of developing countries have a low share of their mining industries in GVCs compared to the average presented by the sample countries. Also, the result of the model suggests that the trade openness and qualified labor are fundamental to increase the participation of this industry in GVCs.
Relevance / originality: The mining industry is strategic from an economic point of view for many countries and besides, it offers essential inputs for a productive chain of most of the goods used by modern society. Despite this, few studies analyze this industry under a theoretical lens of GVCs.
Theoretical / methodological contributions: This study seeks to expand the GVC literature by providing evidence of what factors contribute to the participation of the mining industry in these chains.
Social / management contributions: There are possible ways that can improve the participation of countries that have a poorly integrated mining industry in GVCs.
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