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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 33, No. 1, pp.43-71
ISSN: 1225-0279 (Print)
Print publication date 29 Feb 2020
Received 23 Dec 2019 Revised 03 Feb 2020 Accepted 03 Feb 2020

Deeper Regional Integration and Global Value Chains

Nakgyoon Choi
Nakgyoon Choi, Visiting Research Fellow, Korea Institute for International Economic Policy, Sejong National Research Complex, 370, Sicheong-daero, Sejong-si, Republic of Korea, Tel: +82-44-414-1079 ngchoi@kiep.go.kr

JEL Classification: F11, F14

Abstract

Recently, international trade has become regional rather than global. This study aims to test if deep regional integration contributes to the organization of global value chains centered around the regional clusters. We use data on not only trade in value added but also global value chain participation indexes that reflect the global value chains better than domestic value added in exported goods and services. Estimation results reveal that a deep regional trade agreement (RTA) has heterogeneous effects on global value chains depending on the regional clusters. In particular, Asia imports more intermediate goods than Europe and America, while RTA member countries tend to import more intermediate goods from Europe than Asia and America.

Keywords:

Global value chains, Deeper integration, Regional clusters

Acknowledgments

I would like to thank an anonymous referee for constructive comments and suggestions. This paper is a revised version of Choi (2019).

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