Szymczak, Sabina
A icle
The impac o global alue chains on wages, employmen ,
and p oduc i i y: A su ey o heo e ical app oaches
Jou nal o Labou Ma ke Resea ch
P o ided in Coope a ion wi h:
Ins i u e o Employmen Resea ch (IAB)
Sugges ed Ci a ion: Szymczak, Sabina (2024) : The impac o global alue chains on wages,
employmen , and p oduc i i y: A su ey o heo e ical app oaches, Jou nal o Labou Ma ke
Resea ch, ISSN 2510-5027, Sp inge , Heidelbe g, Vol. 58, Iss. 1, pp. 1-25,
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Jou nal o Labou Ma ke Resea ch
The impac o global alue chains onwages,
employmen , andp oduc i i y: asu ey
o heo e ical app oaches
Sabina Szymczak1*
Abs ac
This s udy p esen s a sys ema ic li e a u e e iew o p o ide a collec ion o heo ies explaining he impac o global
alue chains (GVCs) on labou ma ke ou comes. Due o he complex na u e o GVCs and he in e connec edness
o wages, employmen , and p oduc i i y, many di ec and indi ec e ec s a e a play. To ensu e a anspa en and sys-
ema ic low o he e iew p ocess, I ollow he PRISMA guide. E en ually, 36 eco ds ou o 1221 esul s om Scopus
da abase we e selec ed. This e iew may be use ul o heo is s, empi ical economis s, and policy make s as an o e -
iew o heo e ical de elopmen s and con enien map o po en ial ou comes expec ed om in ol emen in GVCs.
I iden i ies and sys ema izes a numbe o e ec s exis ing in he li e a u e unde a ious names. The esul s show
ha he p edic ions om he heo y a e ambiguous. The posi i e e ec s which may eme ge ega dless he cha -
ac e is ics o he GVC a e he p oduc i i y-enhancing e ec and he c oss-e ec , especially impo an conside ing
g owing se ici ica ion o manu ac u ing. He e lies he c i ical ole o he s a e and policies o assu e ha he losses
will no exceed he gains in he agg ega e e ms. One o he main ac o s shaping he ou come is he powe dis ibu-
ion among he GVC’s i ms. Addi ionally, his pape shows he sho comings o he exis ing heo ies. Less agg ega ed
le els o analysis could be a g ea inpu o he discussion, as well as add essing di e en GVCs’ dimensions and ypes
o o ganisa ion. The unde s anding o ela ion be ween GVC posi ion and labou ma ke is especially wo h explo a-
ion as he exis ing e idence adop di e en and e en con adic ing pe spec i es on he de ini ion o upg ading
he GVC posi ion.
Keywo ds Sys ema ic li e a u e e iew, Global alue chains, Wage, Employmen , P oduc i i y
JEL Classi ica ion F16, F60
1 In oduc ion
1.1 GVC ade ele ance andi s consequences o labou
ma ke s
Global alue chains (GVC) epo s published in ecen
yea s (WTO, 2019; WBG, 2020; WTO, 2021) as well as
o he s udies (e.g. Timme e al. 2016; Taglioni & Winkle
2016) con i m a apid g ow h o he GVCs’ ade since he
90s, in e up ed by he global inancial c isis o 2008, o
which one can obse e a sudden d op. Acco ding o Mi -
oudo e al. (2009), ade in in e media e goods was o e
hal o he goods aded be ween de eloped economies,
and ade in in e media e se ices was abou h ee-qua -
e s o he se ices ade. I explains why GVCs a e called
he wo ld economy’s "cen al ne ous sys em" (Wo ld
Economic Fo um, 2013, p.4). In he ecen pos -c isis
pe iod, he GVCs’ ade somewha slowed and s abilised
(Timme e al. 2016). Despi e he documen ed slowdown
in i s expansion and he ecen impac o he global pan-
demic, i s ill de ines how a huge pa o he p oduc ion
o goods and se ices in he wo ld is aking place. As he
*Co espondence:
Sabina Szymczak
sabina.sz[email p o ec ed]
1 Facul y o Managemen and Economics, Gdańsk Uni e si y
o Technology, 11/12 Gab iela Na u owicza, 80-233 Gdańsk, Poland
9 Page 2 o 25
S.Szymczak
da a on in e media e lows come wi h a signi ican delay,
i is s ill ea ly o assess how COVID-19 changed he pic-
u e (WTO, 2021). Wha is ce ain, hough, is ha he
global pandemic aised awa eness abou isks ela ed o
in e na ional p oduc ion ne wo ks (WTO, 2021).
The ocus o his li e a u e e iew is pu on a pa -
icula sub opic ela ed o GVCs, namely i s impac on
labou ma ke ou comes like wages, employmen , and
p oduc i i y. Much a en ion was dedica ed o his opic
in heo e ical and empi ical s udies. Among he mo i a-
ions, one could men ion, on he one hand, he gene al
iew popula in economics on he bene i s o openness o
ade, which could be aced back o he Rica dian model
o e en ea lie . T ade in in e media es, which is he cen-
e o a en ion o his e iew, was shown by he heo y
o be e en mo e bene icial han ade in he inal goods
(Ma kusen 1989). On op o he simply be e use o he
p oduc ion ac o s he main gains s em om he lea ning
by impo ing/expo ing, managemen know-how (An às
& Yeaple 2014), a ious echnology spillo e s (Sma zyn-
ska-Ja o cik 2004; Baldwin & Lopez-Gonzalez 2015), and
access o be e inpu s (Ami i & Konings 2007; Halpe n
e al. 2015). This ad an ages o GVCs pa icipa ion we e
pa icula ly impo an o he de eloping coun ies, as a
as e way o indus ialisa ion, be e p oduc i i y, and
wages. The empi ical e idence sugges s ha GVC in e-
g a ion suppo inclusion o ce ain g oups o wo ke s
o o mal labou (McCaig & Pa cnik 2018; Mae ens &
Swinnen 2009) and p omo es gende equali y (see b oad
e iew o e idence in WTO, 2023).
On he o he hand, he eme gence o GVCs aised
many conce ns abou , e.g. he h ea i may cause o
selec ed ypes o wo ke s. Especially he si ua ion o low-
skill wo ke s om de eloped coun ies was pe cei ed o
wo sen due o GVCs eme gence. One o he mos in lu-
en ial empi ical e idence was Au o e al. (2013) who
showed signi ican unemploymen ise and wage educ-
ion in US caused by he impo compe i ion om China.
Ano he common conce n was how he asymme ic
powe dis ibu ion be ween GVCs’ pa icipan s modi-
ies he possible gains om global p oduc ion sha ing
(WTO, 2023). The ques ion asked is whe he he lead-
ing companies do no consume all p o i swhile he low-
end wo ke s a e hu wi h indecen wo king condi ions
(He kenho e al. 2021) and he leas ad anced pa ici-
pan s a e apped a low p oduc i i y p oduc ion s ages,
whe e he lea ning channel canno h i e (Pie obelli
e al. 2018). The conce ns ela ed o GVCs each e en o
e.g. he gende gap in men al well-being o employees o
GVCs’ companies (A na son e al. 2023).
Wha makes he pic u e e en mo e complica ed is
ha i is no enough o s udy only he di ec channels o
impac . The h ee examined aspec s: wages, employmen ,
and p oduc i i y a e in e connec ed, and changes in one
may al e ano he (Meage & Speckesse , 2011). Mo eo-
e , in he in e connec ed p oduc ion sys ems, he e is no
shock ha would impac only i s a ge . Ins ead, shocks
a e dis ibu ed h ough he whole p oduc ion sys em,
a ec ing i s a ious pa icipan s: coun ies, sec o s,
i ms, and wo ke s (empi ical e idence by, among o h-
e s, Tin elno e al. 2018; Connell e al. 2017) and caus-
ing insecu i y on he labou ma ke s connec ed h ough
ade (C ouch 2010). Recen ly, he COVID-19 pandemic
and he wa in Uk aine eminded us how s ongly linked
a e global p oduc ion s uc u es hese days (WTO, 2021,
2023).
Mo eo e , he ole o se ices in GVC inc eased (WBG,
2017) also indi ec ly h ough he e ec o "se ici ica ion”
o “se i isa ion" o manu ac u ing, unde s ood as he
g owing impo ance o se ices as inpu s o manu ac u -
ing, as ac i i ies wi hin i ms, o as ou pu bundled wi h
goods (Fus e e al. 2020; Mi oudo 2017; Cheng & Xiao
2021; Ko dalska & Olczyk 2021). Some hin s abou he
suppo i e ole o se ices in p oduc ion agmen a ion,
leading o he inc eased geog aphical dispe sion o p o-
duc ion, we e p o ided al eady by, e.g. Jones and Kie z-
kowski (2005). In his new eali y, i is c ucial o de o e
mo e a en ion o so called c oss-e ec s be ween sec o s,
explaining how GVC pa icipa ion e ec s o labou ma -
ke can be ans e ed be ween se ices and manu ac u -
ing, o be ween se ices sec o s. Only hen one can see
he ull pic u e o who is gaining and who is losing.
To summa ise he abo e mo i a ion, GVC impac on
labou ma ke s is no only a ho opic in economic li e a-
u e, uelled by imp o emen s in ade measu emen s bu
also a poin o in e es o policy make s and socie y con-
ce ned abou h ea s and gains o globaliza ion.
1.2 Va ie y o no ions ega dingGVCs
The phenomenon o globally dispe sed p oduc ion
appea s in he li e a u e unde many names. Du ing he
yea s, i was e e ed o as, among o he s: in e na ional
agmen a ion (Jones & Kie zkowski 1990), global com-
modi y chains (Ge e i & Ko zeniewicz, 1994), in e -
na ional ou sou cing (Feens a & Hanson 1996a, b, c),
o sho e sou cing (A nd 1998b), e ical specialisa-
ion (Hummels e al. 2001), ade in in e media e inpu s
(Feens a & Hanson 2001), global p oduc ion sha ing
(Feens a & Hanson 2001), global alue chains (Ge e i
e al. 2001), global sou cing (An às & Helpman 2004),
second g ea unbundling (Baldwin 2006), ade in asks
(G ossman & Rossi- Hansbe g, 2008), o sho ing (Feen-
s a 2010), ade in alue added (Johnson & Nogue a
2012), global p oduc ion ne wo ks (Coe & Yeung, 2015),
and o he s.
Page 3 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
F om now on, his s udy will e e o his phenom-
enon mos ly by he e m “global alue chains” (GVCs).1
The eme gence o li e a u e widely using he concep s
o alue chains is da ed o he 80s (S u geon 2001; Hen-
de son e al. 2002). One o he many de ini ions which
can be ound in he li e a u e ells ha he alue chain
consis s o all he “ac i i ies ha a e equi ed o b ing a
p oduc o se ice om concep ion h ough he di e en
phases o p oduc ion (in ol ing a combina ion o physi-
cal ans o ma ion and he inpu o a ious p oduce se -
ices), deli e y o inal consume s, and inal disposal a e
use” (Ge e i e al. 2001, p. 3). A e An às (2020, p.3), a
global alue chain “consis s o a se ies o s ages in ol ed
in p oducing a p oduc o se ice ha is sold o consum-
e s, wi h each s age adding alue, and wi h a leas wo
s ages being p oduced in di e en coun ies". Acco ding o
he Wo ld Bank G oup (2020, p.17), GVC is " he se ies o
s ages in he p oduc ion o a p oduc o se ice o sale o
consume s”. A each s age some alue is added, and he
condi ion o call i "global" is ha a leas wo o he p o-
duc ion s ages mus be placed in di e en coun ies. In
ecen s udies one can ind a di e en ia ion o GVC in o
simple and complex, depending on he numbe o bo -
de s c ossed o p oduc ion (Wang e al. 2017a, 2017b).
I can be a gued ha an e en mo e accu a e no ion
han GVC is a global p oduc ion ne wo k, as p oduc ion
p ocesses usually may ha e a mo e complica ed s uc u e
han a linea one. This di e ence was poin ed ou , e.g. by
S u geon (2001), who dis inguish a alue chain, unde -
s ood as " he sequence o p oduc i e (i.e. alue-added)
ac i i ies leading o and suppo ing end use", om a p o-
duc ion ne wo k, which is "a se o in e - i m ela ion-
ships ha bind a g oup o i ms in o la ge economic uni "
(S u geon 2001, p.11). Mo eo e , one can alk abou a
global p oduc ion ne wo k i “ac o s coo dina e ac i i ies
ac oss a leas wo con inen s o ade blocs” (S u geon
2001, p. 14). Ano he de ini ion o global p oduc ion
ne wo ks (GPN) used in li e a u e is he one gi en by
Coe e al. (2008) o Hende son e al. (2002). A e hese
sou ces, a p oduc ion ne wo k is “ he nexus o in e con-
nec ed unc ions, ope a ions and ansac ions h ough
which a speci ic p oduc o se ice is p oduced, dis ib-
u ed and consumed”, and i is conside ed o be global i
i s “in e connec ed nodes and links ex end spa ially ac oss
na ional bounda ies”, so a GPN “in eg a es pa s o dis-
pa a e na ional and subna ional e i o ies”. In E ns and
Kim (2002) one can ead ha GPN a e ne wo ks which
“combine concen a ed dispe sion o he alue chain
ac oss i m and na ional bounda ies, wi h a pa allel
p ocess o in eg a ion o hie a chical laye s o ne wo k
pa icipan s” (E ns & Kim 2002, p.1).
Despi e he abo e, bo h no ions GVC and GPN a e cu -
en ly used in e changeably and e e ing o GVC does
no need o imply he linea o ganisa ion o he p ocess.
When dis inguishing he con igu a ion o he p oduc-
ion agmen a ion p ocess is impo an , some sou ces
employ he e ms "snake" o "spide " o desc ibe he
shape o his s uc u e (Baldwin & Venables 2013; WBG,
2020; Tozo & Gong 2020; An às & de Go a i 2020).
Snake ega ds a alue-added c ea ion p ocess ha is lin-
ea , sequen ial, and usually longe han he spide ype o
p oduc ion o ganisa ion, which e e s o a con igu a ion
o mul iple uni s supplying in e media es o an assem-
bling uni . One can expec ha mos o he GVC a e
hyb ids o hese wo ypes, called "snike s" (WBG, 2017).
In he li e a u e one can ind se e al examples o GVC
ela ed o he p oduc ion o pa icula goods, speci ying
he dispe sion o he p oduc ion s ages o e geog aphi-
cal loca ions on a global scale. These examples a e goods
like bikes (WBG, 2020), Nu ella (De Backe & Mi oudo ,
2014), Apple iPhones (Xing & De e 2010; Kaplinsky
2015) o Boeing Comme cial Ai planes (Kaplinsky 2015).
As s a ed abo e, bo h GVCs and GPNs a e qui e b oad
concep s, which may co e di e en modes o engage-
men in global p oduc ion sha ing. I can be ealised, o
ins ance, as in a- i m ade (o sho ing pa s o p oduc-
ion o o eign subsidia ies) o as in e na ional ou sou c-
ing (sou cing om he ou side o he company). These
e ms a e widely adop ed in he empi ical li e a u e, as
well as in he gene al epo s annually eleased unde he
name Global Value Chain De elopmen Repo as a coop-
e a i e wo k o i.a. he Wo ld T ade O ganiza ion, OECD,
and The Wo ld Bank G oup (e.g. WBG, 2017; WTO,
2019, 2021, 2023). The lis o keywo ds chose o he sys-
ema ic li e a u e sea ch e e s also o he e m global
commodi y chains (GCCs, as i is an ances o o he
GVCs and GPNs) and in e na ional p oduc ion agmen-
a ion as ano he su icien ly b oad concep . A commod-
i y chain is de ined by Hopkins and Walle s ein (1986,
pp.159) as “a ne wo k o labo and p oduc ion p ocesses
whose end esul is a inished commodi y”, while acco d-
ing o Jones and Kie zkowski (2005, pp.4) “ he concep
o agmen a ion e e s […] b oadly o he possibili y ha
p oduc ion blocks a e sepa a ed by dis ance”. The de ails
ega ding he choice o keywo ds and o he es ic ions
imposed on he SLR p ocedu e a e explained mo e ho -
oughly in he Sec .2. The key c i e ion ega ding his pa
o li e a u e selec ion was he e o e o iden i y s udies
analysing case o a leas wo s ages o p oduc ion spli
be ween coun ies. I implies he ade in in e media es
(di e en ia ed om he ade in inal gods and se ices),
wi hou assuming any pa icula mode o engagemen
1 In his wo k, I use mos o en he e m "global alue chains" (GVCs). How-
e e , when e e ing o li e a u e, I use he e ms used in he sou ce.
9 Page 4 o 25
S.Szymczak
(in a- i m o sho ing s in e na ional ou sou cing; num-
be o s ages o agmen a ion; e c.).
The oo s o he heo y connec ing GVCs wi h labou
ma ke ou comes a e some imes aced all he way back
o he Rica dian model o compa a i e ad an age o he
Hecksche -Ohlin (H–O) wo-coun ies, wo-goods, wo-
ac o s (2 × 2 × 2) model (see, among o he s, Milbe g
& Winkle 2010 o e iew). In he eali y o globalised
p oduc ion, he explana o y powe o , o ins ance, he
H–O model was p o ed by empi ical s udies o be low.
Among o he ac o s, i could be due o a lack o accoun -
ing o he e ogeneous i ms o echnology impac (Wang
e al. 2021a). Bu impo an ly, none o hese app oaches
allowed o ade in in e media es and he consequences
o agmen a ion o p oduc ion o a pa icula good
be ween coun ies. The e o e, he impac o agmen ed
p oduc ion could ha e only been cap u ed since he
eme gence o con ibu ions in oducing a leas wo
componen s o p oduc ion s ages o he model. La e ,
many con ibu ions ha e been made o he ield, calling
he g owing phenomenon di e en names, as lis ed in
one o he p e ious pa ag aphs.
1.3 GVCs’ impac onlabou ma ke s – aim o heli e a u e
e iew
I is possible o ind he li e a u e (e.g. Milbe g & Winkle
2011; F anssen 2019; Shingal 2015) p o iding some sum-
ma ies o heo e ical pape s on GVCs’ impac on labou
ma ke ou comes. Howe e , acco ding o my knowl-
edge, no such summa y is conduc ed wi h he igou o
a sys ema ic li e a u e e iew (SLR). The e a e plen y o
ecen ly published SLRs ega ding GVCs. Howe e , hey
usually ackle di e en p oblems and ocus on collec ing
empi ical e idence. Fo ins ance, he e is De Ma chi and
Al o d (2022) on s a e policies and upg ading; De Ma chi
e al. (2018) on lea ning and inno a ion oppo uni ies
o de eloping coun ies; Golgeci e al. (2021) on he
en i onmen al sus ainabili y o eme ging ma ke i ms;
Kha ak and Pin o (2018) on en i onmen al upg ading;
Nyagadza e al. (2022) on indus ial inno a ion dynam-
ics; Panib a o e al. (2022) on he Bel and Road Ini ia-
i e; and Kano e al. (2020) who e iews mul idisciplina y
li e a u e on GVCs.
This s udy answe s he u gen call, mo i a ed by all
he abo e a gumen s, o conduc a sys ema ic li e a u e
e iew on channels o GVCs’ impac on labou ma ke
ou comes. I sheds ligh on he di ec and indi ec e ec s
s emming om he complex na u e o p oduc ion sys-
ems i sel and also om he in e connec edness o he
h ee: wage, employmen , and p oduc i i y. In he p es-
ence o a ie y o names e e ing o global alue chains,
i con ibu es o clea iden i ica ion o heo ies conce n-
ing speci ically agmen ed p oduc ion. To his end, i
p o ides a comp ehensi e collec ion o such heo e ical
models and amewo ks going beyond he ew mos ly
ci ed pape s ye including only high-quali y con ibu-
ions due o limi ing he sea ch o Scopus da abase. The
me hod o sys ema ic e iew assu es he mos objec i e
and anspa en p ocedu e o selec ion o he ele an li -
e a u e. Due o he na u e o analysed eco ds ( heo e i-
cal pape s) his e iew is o a desc ip i e ype suppo ed
wi h some g aphical summa y. The esul s a e p esen ed
emphasising he main insigh s o he de eloped and
de eloping coun ies, as well as indica ing he uni e -
sal channels wo h suppo ing o boos he gains om
GVCs pa icipa ion o labou ma ke s. Addi ionally,
his e iew in o ms abou se e al ex e nal and in e nal
ac o s shaping GVCs impac acco ding o he a ious
amewo ks and lis s some limi a ions o he cu en li -
e a u e. Hence, his s udy may be use ul o heo is s (as
an up- o-da e o e iew o heo e ical de elopmen s wi h
iden i ied gaps in exis ing heo y), empi ical economis s
(as a base o conduc ing an empi ical esea ch), and
policymake s (as a con enien map o po en ial ou comes
om in e na ional in eg a ion o ade).
The e o e, conduc ing an SLR o ill his gap mos ce -
ainly cons i u es aluable inpu o he li e a u e. The
esea ch ques ion is: Wha is he impac o GVCs on
labou ma ke ou comes: wages, employmen demand,
and p oduc i i y? The sys ema ic li e a u e e iew p e-
sen ed in u he sec ions aims o iden i y ele an li -
e a u e wi h heo e ical con ibu ions o answe his
esea ch ques ion.
2 Sys ema ic li e a u e e iew me hodology
To ensu e a anspa en and sys ema ic low o he e iew
p ocess, I ollow he guideline by Xiao and Wa son (2019)
and he mos up o da e PRISMA (The P e e ed Repo -
ing I ems o Sys ema ic Re iews and Me a-Analyses)
s a emen by Page e al. (2021). Table1 summa ises he
e iew p o ocol de eloped o his s udy. Figu e1 p e-
sen s he PRISMA low cha epo ing he numbe o li -
e a u e eco ds analysed a each e iew p ocess s ep.
I chose Scopus as he da abase o use in his s udy, as
i is one o he leading abs ac and ci a ion da abases o
pee - e iewed li e a u e, o en used in simila SLR s ud-
ies (De Ma chi & Al o d 2022; Panib a o e al. 2022; De
Ma chi e al. 2018; Nyagadza e al. 2022). Mo eo e , i
o e s b oade co e age han he Web o Science (Pani-
b a o e al. 2022; Mongeon & Pauls-Hus, 2016). Some
s udies also conside Google Schola , especially when
sea ching h ough so-called g ey li e a u e, which could
en ich he e iew. Howe e , in my s udy, I was ocused
on heo e ical con ibu ions ha a e expec ed o be ela-
i ely highe -quali y pape s, so I limi ed my sea ch o
Scopus. Due o he same eason, he sea ch was limi ed
Page 5 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
o jou nal a icles, books, and book chap e s. I only con-
side ed documen s in English. Subjec a eas co e ed
"Economics, Econome ics and Finance" and "Business,
Managemen and Accoun ing".
Based on he esea ch ques ion, I de ined a se o key-
wo ds o build a sea ch s ing. I di ided he keywo ds
in o wo concep domains: GVCs and labou ma ke ou -
comes, and hus he sea ched documen ’s i le, keywo ds
and/o abs ac mus con ain a leas one keywo d/
ph ase ou o each domain. The inal lis o keywo ds was
decided a e a ew p e- e iew sea ch a emp s. In his
way, i was possible o na ow down he opic and ob ain
a manageable numbe o sea ch esul s in he i s s ep
while assu ing a good co e age o all s udies possibly
ela ed o he esea ch ques ion a he same ime.2 Finally,
he Scopus da abase sea ch esul ed in 1221 eco ds.3
The i s sc eening was based on analysing i les and
abs ac s (al e na i ely, in oduc ion snippe s a ailable in
Scopus in case o books o book chap e s i he abs ac
was una ailable). The eco d mus ha e me all he inclu-
sion c i e ia lis ed in Table1 o be included in he e iew.
Mos o he excluded eco ds a e ei he un ela ed o
he opic ( ailed o mee condi ion Ia o Ib, please see
Table1) o no in he scope o in e es o his e iew as
pu ely empi ical, me hodological o policy pape s ( ailed
o mee condi ion III). I did no include documen s which
Table 1 Re iew p o ocol able
Addi ionally, I excluded eco ds con aining he ph ase "Gul Coope a ion Council" (abb e ia ed as "GCC") o limi he numbe o o - opic sea ch esul s
Sou ce: own elabo a ion
Pu pose o he s udy
This li e a u e e iew aims o iden i y heo e ical con ibu ions o answe he esea ch ques ion: Wha is he impac o GVCs on labou ma ke ou -
comes: wages, employmen demand, and p oduc i i y?
Sea ch s a egy
Keywo ds 1) GVCs- ela ed:
g c OR gpn OR gcc OR ( global* OR in e na ional* AND " alue chain*" OR "p o-
duc ion ne wo k*" OR "commodi y chain*" OR ( p oduc ion W/2 agmen *))
AND
2) ela ed o labou ma ke ou comes:
( labo OR labou ) OR wage* OR sala * OR ( cos * W/2 employ*) OR employmen
OR p oduc i * OR ( ( c ea * OR des uc * OR demand OR los* OR new OR educ *
OR all* OR declin* OR dec eas* OR inc eas* OR expan* OR boos * OR gain* OR
de elop* OR g ow* OR ise*) W/2 ( job* OR wo k* OR employ*))
Sea ched ields i le, abs ac , and keywo ds
Da abase Scopus
Language English
Subjec a eas Economics, Econome ics and Finance
Business, Managemen and Accoun ing
Documen ype A icle, Book, Book chap e
Time pe iod No es ic ions
Inclusion c i e ia
To be included in he e iew, all o he ollowing c i e ia mus ha e been me :
Ia) Does his epo ega d GVCs?
Ib) Does his epo ega d a leas one o he ollowing labou ma ke ou comes: wages, employmen demand, o p oduc i i y?
II) Does i ega d he impac o GVCs on he labou ma ke ou comes?
III) Does i p o ide any heo e ical con ibu ion? (Does i ex end he exis ing heo y on he opic?)
(Excep ion: heo e ical li e a u e e iews wi h no own heo e ical con ibu ion also included)
Quali y assessmen
No u he quali y cons ain s we e o ced. Limi ing he sea ch o he Scopus da abase was he ini ial quali y es ic ion
2 In he p esence o many names used o desc ibe he phenomenon o glob-
ally dispe sed p oduc ion (see a subsec ion in he In oduc ion), he GVCs-
ela ed keywo ds mus be limi ed (see lis o keywo ds in Table1). Wi h
he ocus on e iewing he li e a u e cap u ing he g owing complexi y o
p oduc ion s uc u es, he keywo ds e e ing o "chains", "ne wo ks", and
" agmen a ion" we e chosen as a base. The excep ion was he e m "supply
chain", which was pu posely omi ed, as i doubled he numbe o esul s
while i is a e m used a he in logis ics and managemen .
3 Da abase accessed: 4 Feb ua y 2023.
9 Page 6 o 25
S.Szymczak
explained he ela ion be ween GVCs and he labou
ma ke , al hough in he opposi e di ec ion ( ailed o
mee condi ion II), such as analyses on, e.g. labou cos s
as a de e minan o GVCs pa icipa ion. The one excep-
ion o he inclusion c i e ia was heo e ical li e a u e
e iews, and hey we e also included in his e iew, e en
i hey did no p o ide any o iginal heo e ical con ibu-
ion. In case o any doub s abou whe he a eco d mee s
he inclusion c i e ia, i was included a he i s sc een-
ing s age o be u he assessed a he ull- ex analysis
s age, as i is ecommended o he i s sc eening o be
inclusi e (Xiao & Wa son 2019). Fo ins ance, eco ds
ega ded b oadly, e.g. wo king condi ions o economic/
social upg ading we e also included as hese no ions
may co e issues ela ed o wages o p oduc i i y and,
he e o e, could be ele an .4 Ano he example could
be empi ical wo ks o which i was unclea a he i s
sc eening s age whe he hey may also con ain any ex en-
sion o he heo y. On he o he hand, eco ds wi h oo
na ow ocus, including bu no limi ed o, o ins ance,
GVCs’ impac on child labou o gende wage inequali y,
we e ou o he scope o his e iew. The i s sc eening o
i les and abs ac s esul ed in 220 eco ds quali ied o
u he conside a ion.5
Fig. 1 PRISMA low cha . Sou ce: own elabo a ion
4 Mu akami and O suka (2020) sugges ha many s udies e en use he e m
“upg ading” (meaning economic upg ading) in e changeably wi h p oduc-
i i y. Milbe g and Winkle (2010, p.251) p o ide a summa y o p oxies
used in he li e a u e o measu ing economic and social upg ading, whe e
wages, employmen and p oduc i i y appea as examples.
5 F om his poin I was using Mendeley Desk op ( e sion 1.19.8) o collec
and manage he selec ion o eco ds.
Page 7 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
The nex s ep was sc eening ull- ex documen s o
selec hose ha mee he inclusion c i e ia. The e we e
a ew duplica es and eco ds o which ull ex could no
be e ie ed. Finally, 36 epo s we e selec ed as ele an
o he analysed opic. Among hem, 15 we e classi ied
as closely ela ed o he opic and p o iding subs an ial
heo e ical con ibu ions (A nd 1998b; Venables 1999;
Jones 2005a, b; Milbe g & Winkle 2010; Dluhosch &
Hens 2016; Egge & K eickemeie 2017; Lee & Yi 2018; Li
& Liu 2018; Ma e al. 2019; Mi a & Gup a 2020; Sch öde
2020; Zi 2020; Cheng & Xiao 2021; Wang e al. 2021b; Cai
e al., 2022). The collec ed s udies a e summa ised in he
Table2. Ano he 12 we e classi ied as less ela ed o wi h
smalle heo e ical inpu (Kam 2013; Mukhe jee 2017;
Van Assche & Gangnes 2019; B akman & Van Ma ewijk
2022; Meh a 2022; Gammelgaa d e al. 2009; Kühn &
Viegelahn 2019; Yülek & San os 2022; Na han 2021; Ba -
ien os e al. 2018; Ge e i & Lee 2018; Naq i & Memon
2018). They a e summa ised in he Table 3. Las ly, 9
pape s wi h a minimal own heo e ical con ibu ion we e
also included in he SLR, as hey deli e e iews on li -
e a u e connec ing GVCs wi h implica ions o labou
ma ke s (Na han & Sa ka 2011; G ies e al. 2017, 2018;
E ns 2018; Cho 2019; F anssen 2019; Wang e al. 2021a;
Selwyn & Leyden 2022; D apkin e al. 2022).
3 Resul s—sys ema ic li e a u e e iew epo
The mos gene al insigh om he e iew is ha he e a e
wo clea s eams o GVCs s udies. One s eam pe ains
o s ic ly economic models, which s and o mos o he
wo ks desc ibed below. The second s eam consis s o
s udies e e ing mo e o he o ganisa ional dimension
and go e nance o GVCs and he social dimension o his
phenomenon (like, among o he s, many wo ks au ho ed
by Ge e i). These s udies we e included in his e iew o
a much less ex en , as hey usually do no p o ide sys em-
a ic e idence on GVCs’ impac on wages, employmen ,
and p oduc i i y. Howe e , hey may place he p oblem
in a ele an con ex .
3.1 No h–Sou h models
Many s udies ound h ough his SLR we e buil as wo
economies models. Among hem he e a e a ew so-
called No h–Sou h model, whe e pa icula assump ions
ega ding ac o endowmen s on he wo economies we e
included (A nd 1998a, b; Venables 1999; Jones 2005a,
b; Li & Liu 2018; Ma e al. 2019; Van Assche & Gangnes
2019). No h is he de eloped coun y, desc ibed in he
model as a high-wage (high wage- en al a io) and mo e
echnology ad anced economy, while Sou h is labou
abundan , low-wage (low wage- en al a io) de eloping
economy. Especially among he ea lies heo e ical wo ks
on he analysed opic, he ou comes we e analysed mos ly
om de eloped coun ies’ pe spec i e (A nd 1998b;
Venables 1999; Jones 2005a, b; Van Assche & Gangnes
2019), o ins ance, mo i a ed by pe cei ed h ea s o
low-skill wo ke s due o o sho ing o low-skill labou
in ensi e pa s o p oduc ion. The e o e, in hese models
No h is he Home coun y, while Sou h is he Fo eign.
3.1.1 Implica ions o heNo h
The p edic ions o wages o de eloped coun ies sou c-
ing labou -in ensi e in e media es om ab oad a e no
unequi ocally pessimis ic. Many s udies ound a po en-
ial posi i e esponse o wages in he No h (A nd
1998b; Venables 1999; Jones 2005a, b; Li & Liu 2018; and
o he high-skilled also Van Assche & Gangnes 2019).
This e ec is due o specialisa ion in he ype o p oduc-
ion ha ensu es compa a i e ad an age and b ings cos s
sa ings, which unde ce ain assump ions6 may b ing he
inc ease in wages. Such assump ions ega d o e.g. which
o he p oduc ion s ages in a agmen ed indus y is
mo e capi al- o labou -in ensi e, wha is he le el o his
in ensi y compa ed o he o he indus y, and how di e -
en a e he ac o endowmen s (capi al s. labou ; o high
s. low-skill labou ) be ween coun ies (Venables 1999;
Jones 2005a, b; Egge & K eickemeie 2017).
The e o e, he nega i e wage e ec may occu i he
o sho ed asks we e mo e labou -in ensi e han o he
domes ic p oduc ion, bu hey may s ill be less labou -
in ensi e han he es o he p oduc ion in he des ina-
ion coun y, so he ad an age o ac o endowmen s o
each o he coun ies was no su icien ly used. The pos-
sible decline o wages o wo ke s pe o ming asks ha
ha e been o sho ed i he ela i e p ice o p oduced good
alls due o cos sa ings om o sho ing is p esen ed by
G ossman & Rossi-Hansbe g (2006, 2008) unde he
name o ela i e-p ice e ec . Addi ionally, Jones (2005a,
b) compa es he wage e ec s o in e na ional ou sou cing
o he e ec s o echnical p og ess: a coun y’s labou -
in ensi e ac i i y imp o es he coun y’s eal wage a e,
while echnical p og ess in a capi al-in ensi e ac i i y
educes i . On op o ha , he indi ec channel o impac
on wages (wi h bo h signs) may occu because agmen-
a ion o p oduc ion may change he composi ion and
olume o expo s and impo s (Venables 1999; Sch öde
2020).
The employmen e ec s o labou -in ensi e p oduc ion
o sho ing we e s udied by e.g. A nd (1998b) bu also
in he mo e ecen wo ks (Egge & K eickemeie 2017;
Li & Liu 2018; Ma e al. 2019; Van Assche & Gangnes
2019). No able simila i y o mos o he newe models
is allowing o g ea e agmen a ion o he p oduc ion
6 The main assump ions used in he heo e ical models a e lis ed in he
summa y Tables2 and 3.
9 Page 8 o 25
S.Szymczak
Table 2 Main indings om he sys ema ic li e a u e e iew
Au ho s Yea Impac o On Re e ences o p e ious
heo e ical models Main cha ac e is ics o he
heo e ical model P edic ions om he model
A nd 1998b o sho e sou cing wages, employmen Hecksche -Ohlin (H-0) model;
A nd (1997, 1998a); Jones &
Kie zkowski (2001b)
Ad anced (high-wage) coun y
pe spec i e, wo indus ies
(one capi al-in ensi e, one
labou -in ensi e), wo com-
ponen s o p oduc ion, wo
ac o s o p oduc ion (capi al
and labou ) whe e labou
is homogeneous and pe ec ly
mobile, exogenous p ices
o goods; o sho ing o labou -
in ensi e pa o p oduc ion
When impo -compe ing indus-
ies abandon he p oduc ion
o labou -in ensi e componen s,
wages ise, and employmen
expands
Venables 1999 p oduc ion agmen a ion wages Helpman (1984, 1985);
Ma kusen e al. (1996);
Ma kusen (1997); Feens a &
Hanson (1996a, b, c)
Two economies (Fo eign
one wi h low- and Home
wi h a high wage- en al a io),
wo ac o s, and wo indus ies,
one o which can agmen
in o wo componen s
The wage e ec s o agmen a-
ion depend on he ela i e
ac o in ensi ies o di e en
s ages o he p oduc ion p ocess
and on he di e ences in ac o
endowmen s be ween coun-
ies. The e ec s may be
ei he posi i e o nega i e
o bo h coun ies
Jones 2005 in e na ional ou sou cing wages Jones & Kie zkowski (2001) Two ac o s o p oduc-
ion, h ee goods p oduced
wi h a possibili y o agmen a-
ion, o sho ing o any ype
o p oduc ion (labou - o capi-
al-in ensi e) is conside ed
The wage e ec s o in e na ional
ou sou cing depend on he ela-
i e ac o in ensi ies o he p o-
duc ion ac i i ies and on coun-
ies’ ac o endowmen s. The
e ec s a e simila o he e ec s
o echnical p og ess and hey
may be ei he posi i e o nega-
i e o bo h coun ies
Milbe g & Winkle 2010 GVCs, o sho ing wages, employmen , p oduc-
i i y (b oad li e a u e e iew) Na a i e app oach, asym-
me ic ma ke powe , s a ic
and dynamic gains om o -
sho ing, ins i u ional pe spec-
i e (unions, ba gaining)
The ma kup e ec may lowe
he magni ude o posi i e p o-
duc i i y and scale e ec s. Fu -
he mo e, he ins i u ional en i-
onmen mode a es he impac
o o sho ing on labou ma ke
ou comes
Page 15 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
( o g ea e o lesse ex en ) a e no limi ed only o he
de eloping economies, bu all pa icipan s o he GVC
(also he de eloped coun ies).
The e a e also a - eaching consequences o GVCs
pa icipa ion o he Sou h p edic ed by hese models,
ye wi h di e en conclusions. The lea ning p ocess, as
poin ed by Li and Liu (2018), elimina es he echnologi-
cal gap in ime; he ising wages diminish he incen i e
o o sho ing. The en i e p ocess slows down. Howe e ,
as he echnological capabili y o he Sou h shi s upwa d,
an oppo uni y o o he asks o be o sho ed a ises,
and he cycle may s a again. These esul s acco d wi h
hose ob ained by Zi (2020) in mul iple coun ies model
(see Sec . 3.3). A pa ially con adic i e esul s o he
abo e a e p esen ed by Mi a and Gup a (2020) in hei
model allowing o skill o ma ion. The au ho s disco e
a eedback mechanism be ween highe agmen a ion
and wage gap be ween high- and low-skilled wo ke s
in he Sou h: agmen a ion lowe s he wage gap, bu a
lowe wage gap lowe s incen i es o skill upg ading. This
mechanism main ains unskilled labou endowmen ha
is a d i ing o ce o agmen a ion.
3.2 O he models o wo economies
Ano he b anch o wo economies models, much less
nume ous, a e models assuming in e media e ade
be ween simila (o same) coun ies. Depending on he
case, hey may be explici ly No h–No h o Sou h-Sou h
models. Wha is cha ac e is ic abou his b anch is ha
is much mo e ecen and o en ackles he p oblem o
se ices o sho ing. I add esses he need o app op ia e
heo ies in he p esence o g owing in e media e se ices
ade.
One o he examples he e is he wo k by Dluhosch
and Hens (2016) and hei model o he No h–No h
ade. As men ioned by he au ho s, i is like G ossman
and Rossi-Hansbe g (2012) as he coun ies a e assumed
o be iden ical in ac o s p opo ions. G ossman and
Rossi-Hansbe g (2012) show ha i hey a e also iden i-
cal in size, he impac o o sho ing on wages is ambigu-
ous, wi h possible ad an ages o ei he o hem o equal
wages in bo h. When he wo coun ies di e in size, he
wo ke s in he la ge one will enjoy highe wages due
o o sho ing. The No h–No h pe spec i e is ele an
since i e lec s he eal da a on business se ices o sho -
ing, which is he ocus o Dluhosch and Hens (2016).
Business se ices a e assumed high-skill in ense and
ea ed as in e media e inpu s. The inc eased o sho ing
in his sec o may be d i en by ad ances in in o ma ion
and communica ion echnologies (ICT) o by widen-
ing ade in eg a ion. Dluhosch and Hens (2016) a gue
ha he e ec s on employmen and wages o ei he o
hese channels a e di e en . The ne ou come may be
ambiguous and de e mined a he by he p e ailing
channel and no simply by he amoun o se ices o -
sho ed. While ade in eg a ion is pe cei ed as a h ea
o high-skilled wo ke s, and ad ances in ICT should
bene i skilled labou , a hi d mechanism is also a play
ha is speci ic o he analysed case. I is he addi ional
p oduc i i y-enhancing e ec as business se ices help
o manage a mo e agmen ed p oduc ion chain and hus
o bene i mo e om a ine di ision o labou . Compa a-
ble esul s o p oduc i i y we e deli e ed by Cheng and
Xiao (2021) who co e ed e en b oade ange o p oduce
se ices in hei s udy, including sec o s like e.g. ans-
po a ion o pos and elecommunica ion. P oduc i i y
o inal p oduc ion g ows wi h he g ow h o p oduce
se ices (measu ed in e ms o labou employed), which
was o ced by associa ed wi h GVCs expansion demand
o se ices helping o coo dina e mul iple p oduc ion
s ages.
3.3 Models o mul iple coun ies: hes uc u e o GVC
Se e al wo ks included in his e iew p opose an ex en-
sion o he model o he case o mul iple coun ies. He e
one can ind analyses o wages in e ms o skill p emium
and inequali y (Wang e al. 2021b; Lee & Yi 2018; Zi
2020) o employmen demand (B akman & Van Ma -
ewijk 2022; Lee & Yi 2018). Excep Wang e al. (2021b),
who pu s he ocus on he e ogeneous i ms, all hese
s udies assume coun ies di e ing in echnologies. Lee
and Yi (2018) addi ionally ake he pe spec i e o he -
e ogeneous wo ke s. Models o mul iple coun ies a e
ano he way o add ess he complexi y o GVCs (nex o
he con inuum o asks/inpu s conside ed in he models
p esen ed in Sec .3.1.1).
Addi ionally, his app oach o en implies assuming a
pa icula s uc u e o he p oduc ion p ocess, in he
simples case he sequen ial one (B akman & Van Ma -
ewijk 2022; Zi 2020; Lee & Yi 2018). P oduc ion on a
gi en s age (in a gi en coun y) akes he p oduc ion o
a p e ious s age (p e ious coun y) as an in e media e
inpu , accoun ing o he alue chain s uc u e. Ano he
consequence o ex ending he model o many pa ici-
pan s is implying some ules o en y o he new ones.
While Lee and Yi (2018) model desc ibes his p ocess
in mo e gene al e ms, Zi (2020) ope a es on he se ing
wi h one No h (ini ially, he only one capable o ag-
men a ion) and many Sou hs (who may join agmen a-
ion bu only om he ups eam end due o lowe en y
cos s). In he case o incomple e indus ialisa ion (a pa
o Sou h labou is s ill employed in adi ional p oduc-
ion), wages in he Sou h may no ise o sus ain incen-
i es o o sho ing. The mechanism he e is like he one
ob ained in No h–Sou h model by Li and Liu (2018).
A he same ime, he No h bene i s om in e na ional
9 Page 16 o 25
S.Szymczak
agmen a ion, pa icula ly in e ms o wage ise, and
so wage inequali y be ween No h and Sou h inc eases.
When he Sou h eaches ull indus ialisa ion, i s a s
o bene i in e ms o wages due o a p ocess simila o
labou -augmen ing echnological p og ess. Lea ning-by-
doing mechanism will e en ually cause changes in ech-
nologies o he Sou hs who pa icipa ed in GPNs: ea lie
pa icipan s will be o espec i ely highe p oduc i i ies
(ye , always below No h p oduc i i y). The e is a space
o new Sou hs o join, wha implies a "snake" con igu a-
ion o GPNs.
Excep ion o he sequen ial s uc u e se ing is p e-
sen ed by Zi (2020). I one assumes ha all Sou hs sha e
he same echnology, hen he global p oduc ion may
o m a "spide " con igu a ion (also called “hub-and-
spoke”) wi h headqua e s in he No h. In his case, he
whole g oup o Sou h coun ies may be ea ed as one
economy, so he implica ions om he wo-coun ies
model apply. Mo eo e , a new Sou h coun y joining he
GPNs wo sens he wages o ea lie pa icipan s, as his
si ua ion is equi alen o i he labou supply o he Sou h
inc eased. The wages inc ease only a e all pa icipa ing
Sou h coun ies a e comple ely indus ialised (as in he
simple model).
The main conclusions s emming om he mul i-coun-
y app oach is ha GVCs magni y he e ec s o ade
shocks on agg ega e ou comes like wages due o he
highe connec edness and dependence o p oduc ion
s ages in e na ionally. The e o e, he in ensi y o sec o al
GVCs pa icipa ion is c ucial in de e mining he shi s in
labou demand and wages ac oss sec o s and p oduc ion
s ages (Lee & Yi 2018).
In he p esence o conce ns ha p og essing speciali-
sa ion and in e na ional di ision o asks may wipe ou
ce ain occupa ions om ce ain coun ies, B akman
and Van Ma ewijk (2022) es s his possibili y. In hei
model, p oduc ion is pe o med sequen ially in a con in-
uum o asks, and each ask equi es inpu om a speci ic
subse o occupa ions (wi h mo e de ailed classi ica ion
possible han jus high- and low-skill di ision). They
show cons ain s on minimal and maximal demand o
each occupa ion in a gi en coun y. The e o e, he con-
ce n men ioned abo e is g oundless.
3.4 Posi ion inGVC
The p oblem o s uc u e and con igu a ion o GPNs
b ings he discussion close o he ques ion abou posi-
ion aken in he p oduc ion p ocess by a coun y/sec-
o / i m. Theo e ical, as much as empi ical s udies, mos
o en cap u e GVC in e ms o in ensi y o in ol emen
and a ely ocus on he posi ion in GVCs. This SLR inds
a ew excep ions. The mos impo an di ision he e is
whe he he heo y adop s linea (Zi 2020; Wang e al.
2021b) o non-linea pe spec i e on he dis ibu ion o
alue added and, consequen ly, gains/losses along he
p oduc ion chain.
Some hin s abou he impo ance o GVC posi ion o
p oduc i i y we e al eady men ioned in he abo e sec-
ion when e e ing o Zi (2020) model: mo ing om
ups eam ( a om inal demand) o downs eam (close
o inal demand) s ages mean an inc ease in p oduc i -
i y. Hence, his wo k was among hose adop ing linea
pe spec i e on wha i means o imp o e one’s posi ion
(i.e. o mo e downs eam) and whe e he mo e p oduc-
i e and p o i able p oduc ion s ages lie (i.e. on one o he
ends o he p oduc ion chain, he e: downs eam). In e -
es ingly, Wang e al. (2021b) desc ibes mo ing ups eam
(no downs eam) as imp o ing he i m’s posi ion and
shi ing o p oduc ion asks o highe p oduc i i y. The
di e ence be ween hese app oaches is d i en by he
de ini ion o cos s. Rega dless he assump ion abou he
cos s, he linea pe spec i e p esen ed in hese s udies
con adic s he al e na i e one: he smile cu e concep .
Acco dingly o he smile cu e concep by Shih (1996)
he mo e echnology-in ense, highe alue-added p o-
duc ion s ages (like, e.g. R&D, design, ma ke ing) a e
placed a he ends o he alue chains, while less sophis-
ica ed s ages (like, e.g. assembly) a e hose in he middle
o he p oduc ion chain. O he wo ds, he dis ibu ion o
alue added along he chain akes he shape o a smile.
Hence, highe GVCs posi ion (highe alue added) would
be close ei he o ups eam o downs eam end. Mos o
he s udies conside ing GVC posi ion included in his
e iew allow o such speci ica ion (Cai e al. 2023; Meh a
2022) o explici ly assume i (Ma e al. 2019; Yülek & San-
os 2022).
Once again, he impo ance o enhancing he echno-
logical capabili ies and a good u ilisa ion o he lea ning
oppo uni ies and echnology spillo e s o e ed by GVC
pa icipa ion is a gued o be c ucial on he way om an
ini ially low posi ion in GVCs (wi h a low p oduc i -
i y le el) o achie ing highe posi ion and p oduc i -
i y (Meh a 2022; Yülek & San os 2022). In his ma e ,
he possible ha dship o de eloping coun ies o ob ain
g ea e gains om pa icipa ion in GVCs may s em
om he powe dis ibu ion among i ms and coun ies
in he GVC, as no ed by Yülek and San os (2022). Lead-
ing i ms and coun ies a e usually loca ed a he mos
alue-added gene a ing p oduc ion s ages (high ends o
he smile cu e). De eloping coun ies, on he con a y,
may be s uck pe o ming p oduc ion pa s a he bo om
o he smile cu e whe e li le alue added is gene a ed.
I may lead o low p oduc i i y and wages ap o de el-
oping coun ies and an inc easing gap be ween ad anced
and eme ging economies, which is illus a ed by he
Page 17 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
deepening smile cu e (g ea e di e ence be ween high
ends and he middle o he chain).
The GVCs posi ion and i s implica ions o low- and
high skilled labou was s udied by Cai e al. (2023) in
e ms o wage gap in he de eloping economy, and by
Ma e al., (2019) in e ms o demand o skills in bo h
de eloped and de eloping coun ies. These heo ies sug-
ges ha upg ading GVC posi ion (o he wo ds: mow-
ing close o one o he ends he GVC) will inc ease he
demand o skilled wo ke s and widen he wage gap
be ween skilled and unskilled.
3.5 Upg ading
Pa ially ela ed s udies a e also hose ackling he phe-
nomenon o economic and social upg ading in ela ion o
GPNs. This ma e is mos o en discussed wi h a ocus
on de eloping coun ies. Economic upg ading, ega ding
GPNs, may be de ined8 as “a mo e o highe alue-added
ac i i ies in p oduc ion, o imp o e echnology, knowl-
edge and skills, and o inc ease he bene i s o p o i s
de i ing om pa icipa ion in GPNs” (Ba ien os e al.
2018, p. 232). The e o e, his b anch o s udies na u ally
connec s o hose inco po a ing he dimension o a posi-
ion in GPN o he analysis o labou ma ke ou comes,
desc ibed in he p e ious sec ion. Howe e , in a b oad
meaning o upg ading co e s many di e en and qui e
speci ic aspec s o imp o emen , and hence i dese es a
sepa a e discussion.
In he li e a u e one may ind ou ypes o economic
upg ading: p ocess upg ading, p oduc upg ading, unc-
ional upg ading, and chain upg ading. Ba ien os e al.
(2018) poin ou ha each may b ing di e en implica-
ions o wo ke s. Fo ins ance, p ocess upg ading means
inc eased e iciency o he p oduc ion p ocess due o,
e.g. au oma ion, which may educe he demand o some
ypes o wo ke s. The gene al conclusion in his ma -
e would be ha any ype o upg ading may be ela ed
o some shi s in demand o di e en skills. The e o e,
changes in employmen and p oduc i i y a e embodied
in he analysis o economic upg ading in GPNs. Social
upg ading e e s o “imp o emen in he igh s and en i-
lemen s o wo ke s as social ac o s, which enhances he
quali y o hei employmen ” (Ba ien os e al. 2018, p.
233). One o he measu able s anda ds o social upg ad-
ing is wage le el, which also makes social upg ading
a ele an opic o his li e a u e e iew. The e is an
expec ed pass- h ough om economic o social upg ad-
ing. Howe e , many sou ces (e.g. Milbe g & Winkle
2010; Ba ien os e al. 2018) a gue ha economic upg ad-
ing does no necessa ily lead o social upg ading. Again,
he ele ance o a mo e o less ad an ageous posi ion in
GPNs appea s as one o he in luencing ac o s. Based
on he ypology o wo k pe o med (cha ac e ised by
equi ed skills, knowledge and echnology in ensi y, (in)
o mali y, e c.), Ba ien os e al. (2018) ske ch di e en
upg ading pa hs. Fo ins ance, i economic upg ading
elies on high quali y (o p oduc , bu also p oduc ion
s anda ds) and ising p oduc i i y, i may lead o a ise in
wo ke s’ wages (social upg ading). Social downg ading is
possible i , e.g., compe i i eness is achie ed h ough cu -
ing cos s wi h simul aneous ha m o wo king condi ions
(including wage le el).
O he s udies con ibu ing o he unde s anding o
connec ion be ween GVCs and upg ading emphasise
he ole o o he ac o s shaping he inal e ec . The ac-
o ha s ands ou he mos in he li e a u e is abou
he g ea ole o echnology spillo e s, o en gene a ed
oge he by he GPNs pa icipa ion and he local inno-
a ion sys ems, in suppo ing he upg ading in GPNs
in de eloping coun ies (Ge e i & Lee 2018; Naq i &
Memon 2018; Meh a 2022). GPNs and knowledge ne -
wo ks mu ually ein o ce he lea ning po en ial leading
o upg ading and po en ially posi i e labou ma ke ou -
comes. Among o he ac o s one may ound he powe o
he leading i ms o shape he ela ions wi hin he com-
pany, in he p oduc ion ne wo k, and wi h o he ac o s
like e.g. unions and policy make s (Ge e i & Lee 2018).
3.6 C oss‑sec o al e ec s
An impo an lesson d awn om his e iew ega ds o
he GVCs e ec s on labou ma ke appea ing be ween
sec o s o wo ke s’ g oups, and no only in he sec-
o di ec ly pa icipa ing in GVC o in a g oup di ec ly
a ge ed by i . The c oss-sec ional e ec s a e discussed
mos ly in he con ex o job des uc ion and c ea ion
(A nd 1998b; Jones 2005a, b; Van Assche & Gangnes
2019; Mukhe jee 2017; Kühn & Viegelahn 2019), much
less o en in he con ex o wages (Mukhe jee 2017).
A nd (1998b) poin s ou ha , excep he loss o jobs
in p oduc ion ha now is o sho ed, he o e all change
in employmen will consis o new jobs c ea ed in he
assembly o he impo ed componen s as well as in o he
indus ies no di ec ly in ol ed in o sho ing. Simi-
la ly, Jones (2005a, b) emphasises ha in a wo ld open
o c oss-bo de p oduc ion sha ing, in e na ional ou -
sou cing in one indus y may occu simul aneously wi h
’insou cing’ in ano he one. The e o e, job des uc ion
may be balanced wi h job c ea ion. He e labou mobil-
i y be ween indus ies is a p incipal issue o he o e all
employmen e ec o be posi i e. T ade libe alisa ion will
be ully bene icial i c i ical ole o he s a e and policies
will be ul illed in helping he displaced wo ke s o adjus
and assu ing ha he losses will no exceed he gains in
8 Fo a e iew o economic and social upg ading de ini ions and ypes, see,
e.g. Salido and Bellhouse (2016).
9 Page 18 o 25
S.Szymczak
he agg ega e e ms (Van Assche & Gangnes 2019). The
c oss-e ec o in e media e ade on wages is also o an
ambiguous sign, as p o ed by Mukhe jee (2017). The
indi ec e ec s sp ead o o he sec o s and ansmi -
ed h ough he demand–supply o ces ega ding p o-
duced goods depend e.g. on he elas ici y o subs i u ion
be ween skilled labou and capi al.
The ampli ude o such c oss-sec o al e ec is mos
ho oughly in es iga ed in he wo k by Kühn and
Viegelahn (2019) who conside wo sec o s: manu ac u -
ing and p i a e se ices (as public se ices a e said o be
less adable, i adable a all). Reduc ion in ade ba -
ie s o expo s om a gi en sec o (manu ac u ing o
se ices) leads o job c ea ion in ha sec o , and h ough
so-called c oss-e ec also (bu o less ex en ) in he o he
sec o ha is assumed o be inpu supplie . Addi ionally,
he c oss-e ec ha is a esponse o ade cos educ ion
di ec ly ega ding se ices is weake han he c oss-e ec
caused by simila shock di ec ly a ge ing manu ac u ing.
The e o e, his wo k, simila ly o e.g. Lee and Yi (2018),
emphasises ha when p oduc ion is o ganised in GVCs,
any shock, e.g. ade cos shock impac s no only he a -
ge ed coun y-sec o bu also o he GVCs’ pa icipan s.
Th ough he pa icula examina ion o c oss depend-
encies be ween manu ac u ing and p i a e se ices i
con ibu es also o he li e a u e on se ici ica ion o
manu ac u ing, namely he signi ican sha e o inpu s o
manu ac u ing p oduc ion being he in e media e se -
ices, which is a g owing phenomenon now (Cheng &
Xiao 2021).
3.7 Go e nance o heGVCs
The dis ibu ion o powe be ween se e al pa icipan s
o a p oduc ion ne wo k is c ucial o de e mina ion o
he cha ac e o so-called p o i e ec o ma kup e ec
(Milbe g &Winkle , 2010; Ge e i & Lee 2018; Sch öde
2020; Na han 2021; Wang e al. (2021b); This concep
uses he pe spec i e o lead i ms in GVCs and conside s
hei business s a egies, e e ing o he as li e a u e
on GVCs’ o ganisa ion and go e nance (see, e.g. Ge e i
e al. 2018). I builds a b idge be ween he s ic ly eco-
nomic b anch o heo y and he p oblem o success ul
GVC go e nance. The p o i (o ma kup) e ec is de ined
as aising ma kups o e cos s by he leading i ms in he
chain, no by aising p oduc p ices bu h ough con ol
o inpu cos s. Fu he , he leading i ms decide wha
sha e o he highe p o i s will be ein es ed (leading o
inc ease in employmen o u he p oduc i i y imp o e-
men s), sha ed wi h he wo ke s h ough inc ease in
wages o , o ins ance, u n in o sha eholde e u ns,
which may signi ican ly lowe he magni ude o posi i e
p oduc i i y and scale e ec s.
The p o i e ec is pe cei ed he one dis u bing o
enhancing o he channels o GVCs in eg a ion impac :
he p oduc i i y and scale e ec s (acco ding o Milbe g
&Winkle , 2010), subs i u ion and complemen a i y (in
he sense o , e.g., complemen a i y be ween echnology
and skills) e ec (acco ding o Wang e al. 2021b), scale
e ec decomposed in o he expendi u e e ec (domes-
ic demand-induced) and compe i i eness e ec ( o -
eign demand-induced) on employmen (acco ding o
Sch öde 2020). Mos o hese channels o impac we e
discussed in de ail in he p e ious sec ions, only he
wo la e ones dese e a b ie explana ion. I he i ms
comple ely abso b he ad an age o cos sa ing, excep
he nega i e p oduc i i y e ec (in o he wo ds, echno-
logical unemploymen ), a nega i e case o expendi u e
e ec is in ac ion: educed domes ic labou income leads
o a de iciency in domes ic demand, u he gene a ing
unemploymen . The second scena io is when ma kups
a e held cons an , meaning ha gains om cos sa ings
a e en i ely ans e ed in o he lowe p ice o good. He e
addi ionally appea s a posi i e compe i i eness e ec
since lowe p ice s imula es expo s. The ise o o eign
demand may o e come he domes ic demand ine iciency
by swi ching he sign o expendi u e e ec o posi i e i
expo s-led p oduc ion imp o es domes ic incomes, and
consequen ly also domes ic demand. Howe e , he sign
o he o e all e ec esul ing om he opposing o ces is
ambiguous.
The abo emen ioned s udies di e in he amewo ks
used o desc ibe he GVC pa icipan s ega ding hei
oles in he GVC. The asymme y o alue cap u e and
i s une en consequences o de eloped and de eloping
coun ies a e discussed by Na han (2021) om he pe -
spec i e o GVCs as a o m o monopsony ma ke o lead
i ms ha ing he powe o shape he wages and p ices o
inpu s. They deli e a classi ica ion o monopsony powe
le els ela ed o pa icula skill employmen , pay le els
and wo king condi ions. Ge e i and Lee (2018) p opose
di e en scena ios on p o i s and gains dis ibu ion in
GPNs om he pe spec i e o ypes o go e nance (Ge -
e i e al. 2018) and accoun ing o he lead i ms’ impac .
Wang e al. (2021b) connec he GVC posi ion wi h he
i m’s ole. Imp o ing he posi ion (by mo ing o one
whe e mo e alue-added is gene a ed) is cos ly, only
ela i ely mo e p o i able i ms will achie e i , and hose
a e he i ms paying highe wage p emium (by he p o i
e ec ).
In he opic o powe dis ibu ion in GVCs he e is
also a wo k by Gammelgaa d e al. (2009) who p oposes
a classi ica ion o h ee ypes o subsidia ies, acco ding
o hei s a egic ole in GVCs: local implemen e s, spe-
cialised con ibu o s, and wo ld manda es. Local imple-
men e s a e expec ed o ha e he lowes p opo ion o
Page 19 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
skilled labou o all h ee, as hey ha e he lowes au on-
omy and leas complex linkages wi h o he o ganisa ional
uni s. Specialised con ibu o s a e much mo e in ol ed
in in a-o ganisa ional ela ionships. The e o e, hey
need a highe sha e o skilled labou o manage i . On
he o he hand, wo ld manda es will also hi e a ela i ely
high sha e o skilled labou since his kind o subsidia y is
cha ac e ised by highe au onomy, co esponding o, e.g.
inno a i e ac i i ies. Summa ising, speci ic oles aken
by he subsidia y companies pa icipa ing in GVCs may
lead o di e en shi s in he p opo ions o employmen
o wo ke s wi h pa icula skill le els.
3.8 En i onmen o heGVC
Finally, he e a e ins i u ional, socie al, and en i on-
men al ac o s shaping he ela ion be ween GVCs and
labou ma ke ou comes, o e en explaining some new
channels o GVCs’ impac . Acco ding o Milbe g and
Winkle (2010) wo ke s only an icipa ing he possible
nega i e consequences o o sho ing may lowe hei
wage demands, which he au ho s call he h ea e ec .
O he e ec s may also be mode a ed h ough an ins i u-
ional en i onmen . The e o e, conside ing ac o s like
union densi y and powe o ypes o ba gaining coo di-
na ion may be ele an in assessing he esponse o o -
sho ing. Especially ba gaining appea s o be ele an in
shaping he p o i e ec (Wang e al. 2021b), while he
ole o s a e and policies is o u mos impo ance o he
c oss-e ec o be posi i e in he agg ega e e ms, hanks
o e ec i e mobili y and adjus men o displaced wo ke s
(Van Assche & Gangnes 2019).
The ole o ins i u ional en i onmen like egional- and
na ional inno a ion sys ems in suppo ing he upg ad-
ing in GPNs in de eloping coun ies is emphasised by
Naq i and Memon (2018). GPNs and knowledge ne -
wo ks mu ually ein o ce he lea ning po en ial leading
o upg ading and po en ially posi i e labou ma ke ou -
comes (Naq i & Memon 2018; Meh a 2022).
The socie al aspec is add essed by Egge and K e-
ickemeie (2017) o Wang e al., (2021a, b) who employ
in hei models he concep o e iciency wages, acco d-
ing o he ai wage heo y by Ake lo and Yellen (1990).
The c i ical alue o he endowmen a io de e mining
he sign o GVCs impac on employmen may di e o
economies di e ing in p e e ences owa ds he ai ness
o wages, wi h in e na ional agmen a ion being mo e
bene icial in he egali a ian economy. Egge and K e-
ickemeie (2017) also includes he le el o unemploymen
bene i s in he analysis, emphasising he ole o labou
policies in assessing he in e na ional agmen a ion
impac .
3.9 Conclusions om he e iew pape s
While conduc ing he SLR, he e we e se e al pape s
iden i ied wi h a lack o e y limi ed own heo e ical con-
ibu ion bu which deli e e iews on li e a u e connec -
ing GVC wi h implica ions o labou ma ke s (Na han
& Sa ka 2011; G ies e al. 2017, 2018; E ns 2018; Cho
2019; F anssen 2019; Wang e al. 2021a; Selwyn & Ley-
den 2022; D apkin e al. 2022). One o he mos insigh ul
among hem is he a icle by F anssen (2019) who, i s ,
p o ides a sys ema ic summa y o indings ega ding he
demand o low-skill labou s emming om he ea ly
No h–Sou h models (up o he seminal pape by G oss-
man and Rossi-Hansbe g 2008). Fu he , he lis s he main
channels o GVCs’ impac on ela i e demand o skilled
wo ke s. Finally, he p oposes a geome ical syn hesis o
he p e ious de elopmen s, illus a ing se e al channels
o o sho ing impac on labou ma ke ou comes ( o
ins ance, he h ee main channels sepa a ed by G ossman
and Rossi-Hansbe g 2008). The s udy by Cho (2019)
p o ides an o e iew o models linking mic o-le el deci-
sions o i ms in ol ed in in e na ional agmen a ion
wi h mac o-le el ou comes ela ed o he labou ma ke ,
inequali y, and wel a e (among o he s).
Jus o commen on a ew o he s udies, o ins ance,
in G ies e al. (2017), one may ind a e iew o , among
o he s, he possible channels o how in e na ional alue
ne wo ks impac p oduc i i y in de eloped coun ies.
This wo k is ollowed by a simila one ocused on he
same opic bu om he pe spec i e o de eloping econo-
mies (G ies e al. 2018). E ns (2018), based on p e ious
li e a u e de elopmen , desc ibes ou scena ios o how
in eg a ion in GPNs may b ing p oduc i i y-enhancing
inno a ions. Wang e al. (2021a) ace back heo ies
explaining wage inequali y be ween di e en skills, also
including a b anch o in e na ional ade heo y. Selwyn
and Leyden (2022) con on se e al ade heo ies wi h
GVCs’ eali y. Among some addi ional subjec s no
aised in he wo ks desc ibed in de ail in p e ious sec-
ions, one could also men ion: wage ise due o consum-
e s demanding highe labou s anda ds (Na han & Sa ka
2011) o highe quali y p oduc s (Wang e al. 2021a); jobs
c ea ion o hose who so a only wo ked in he in o -
mal sec o (e.g. highe woman pa icipa ion in he labou
ma ke ) (Na han & Sa ka 2011); dis ibu ion o gains
due o whe he i is a buye - o supplie -d i en GVCs
(G ies e al. 2018; Na han & Sa ka 2011); wage inequal-
i y be ween i ms (Wang e al. 2021a); smile-shaped o al
ac o p oduc i i y cu e o GVCs’ i ms (D apkin e al.
2022).
9 Page 20 o 25
S.Szymczak
4 Summa y o he esul s anddiscussion
To summa ise he esul s o his SLR, I p opose a igu e
buil in a simila manne as a g aph p o ided by Milbe g
and Winkle (2010) whe e he au ho s p esen ed ou
mechanisms a ec ing labou demand. He e, in Fig.2 I
p esen he main channels iden i ied by his SLR show-
ing he possible impac o GVCs pa icipa ion on wages,
employmen demand, and p oduc i i y. Fo b e i y, he
de ails and assump ion o he sou ce models a e no p e-
sen ed in he g aph, bu hey can be ound in he p e ious
ables.
The mos s aigh o wa d consequence o GVCs pa -
icipa ion is he subs i u ion e ec (ma ked as [1] in
Fig.2) o lowe demand o he wo ke s who a e now
eplaced by o sho ing. Only because he possible
h ea o losing hei jobs hey may be willing o accep
lowe wages ( h ea e ec ) [2] bu i one sees he in e -
na ional in eg a ion simila o addi ional supply o pa -
icula ype o labou , hen i may also b ing hei wages
down (labou -supply e ec [3]). Since he eplaced
skills and he impo ed inpu s may be complemen a y
o some o he skills and p oduc s, by he complemen-
a i y e ec (also called c oss-e ec [4]) o he sec o s
may ace jobs c ea ion/loss and changes in wages, mod-
e a ing o enhancing he di ec e ec s o GVCs on he
le el o whole economy.
The main mo i a ion o GVCs engagemen is o seek
cheape inpu s. I depends on ma ke s uc u e and
chain s uc u e whe he lowe inpu p ice will ans e
in o lowe ou pu p ice o o highe p o i s, enabling he
p o i - (o ma kup-) e ec [5]. In he p esence o su -
icien ba gaining powe some o he p o i s may go o
wo ke s and b ing a wage ise [5a]. I he ex a p o i s
u n o in es men [5c], highe ou pu will c ea e highe
demand o labou [6a], bu on he o he hand, inc ease
in p oduc i i y will b ing he labou demand down
h ough p oduc i i y e ec [6b]. The p oduc i i y e ec ,
al hough may be posi i e o wages [6c]. I he ex a p o -
i s [5] a e no sha ed wi h wo ke s, his oge he wi h
o he nega i e GVCs’ consequences will educe domes ic
income and c ea e de iciency in domes ic demand, deep-
ening he nega i e e ec on employmen h ough he
nega i e expendi u e-e ec [5b].
The o he scena io is when he ou pu p ice goes down.
The nega i e ela i e-p ice on wages [7] is a mechanism
like he S olpe -Samuelson e ec . Lowe ou pu p ice
will boos he demand o ou pu , aising he in es -
men , and u he also ou pu and p oduc i i y, leading
o he known employmen e ec s wi h opposi e signs
[6a,6b]. The inc eased demand o he ou pu (s emming
ei he om he ini ial d op o ou pu p ices [8] o om
he seconda y d op imposed by he u he p oduc i i y
imp o emen s [6d]) may also come om ab oad, inc eas-
ing p oduc ion o expo s (compe i i eness e ec [8a]).
Highe expo s epai domes ic incomes, and u he also
domes ic demand, enabling a posi i e expendi u e e ec
Fig. 2 Summa y o possible channels o GVCs pa icipa ion impac on wages, employmen , and p oduc i i y. . Fo b e i y, he g aph does
no speci y he de ails and assump ions o heo e ical models om which he p esen ed channels o impac come om. Fo mo e de ails, please
see Table 2 and 3 Sou ce: own elabo a ion. GVC—GVC pa icipa ion, Y—ou pu , YD—demand o ou pu , I—in es men , Empl—demand o labou ,
EX—expo s
Page 21 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
[8b]. These wo posi i e employmen e ec s a e compo-
nen s o scale-e ec on employmen [9].
The e is also a g oup o posi i e di ec e ec s o
GVCs on p oduc i i y [10]. They a e ela ed o he chal-
lenges and oppo uni ies o e ed by GVCs pa icipa-
ion like inc eased compe i ion, access o highe quali y
and a ie y o inpu s, echnology embedded in hem,
knowledge spillo e s, linkages c ea ion and coope a-
ion, and many mo e. The impo an ea u e o hese
channels is he eedback hey b ing, as u he GVCs
in ol emen becomes easie when e.g. some linkages
a e al eady c ea ed, o coo dina ion se ices a e al eady
employed o manage he in e na ional p oduc ion.
I is impo an o men ion ha mos o hese mecha-
nisms a e a play ega dless o he si ua ion we conside
(No h s Sou h pe spec i e, which asks a e aded,
e c.).
All hese po en ial scena ios p esen ed in he Fig. 2
happen in a pa icula en i onmen . The e iew shows
ha ex e nal ac o s and ins i u ions may also shape
labou ma ke esponse o GVCs. One could lis he s a e
(and a ious policies, like e.g. employmen bene i s),
unions (wi h a g ea impac on e.g. labou s anda ds in
GVCs, including he le el o wages), socie y (wi h i s
p e e ence owa d e.g. ai wages), and consume s (e.g.
o cing en i onmen al esponsibili y o decen wo k
s anda ds on GVCs’ i ms, wi h consequence o hei
employees). Among key ac o s shaping he inal pic u e
he e is also he s uc u e o GVCs. I may ega d he
ype (snake, spide , mixed) o GVCs, he ole o a pa icu-
la pa icipan and a powe a ached o i .
As he models ela ing GVCs posi ion o labou ma -
ke ou comes a e much sca ce , he e is no such sum-
ma y p o ided o his pa o he li e a u e. Su icien
o say ha he e is no ag eemen on he cha ac e is ics
o he a ious p oduc ion s ages along he chain, and
he e o e, on he de ini ion o upg ading he posi ion. Fo
ins ance, bo h Venables (1999) and Wang e al. (2021a,
b) p esen a linea de ini ion o p oduc ion chain bu
wi h a he con adic i e assump ion abou which o he
ends (downs eam o ups eam) means highe posi ion.
The linea pe spec i e is also sha ed by Zi (2020). On he
o he hand, he models p oposed by Ma e al. (2019) o
Cai e al. (2023) allow o he p oduc ion chain o ake
a shape o a smile cu e, which may be mo e elas ic
app oach and mo e ealis ic assump ion. Upg ading he
GVCs posi ion would simply mean mo ing o s ages wi h
highe alue-added. Hence, i would depend on he pa -
icula alue chain whe he i was mo ing ups eam o
downs eam om he s a ing posi ion aken by he gi en
indus y o i m.
Among he limi a ions o his e iew, he e ce ainly
is he one ha some ela ed opics had o be neglec ed
o limi he numbe o eco ds o sc eening easonably.
Fo ins ance, his s udy discusses he impac o GVCs on
labou di ided by skills, while also o he dimensions and
special cases could be explo ed, like gende dimension,
o mal s in o mal employmen , child labou , e c. The
heo y on he connec ion be ween GVCs, economic and
social upg ading is also a as subjec and dese es o be
a di ec ion o u he esea ch.
One may ask abou he consis ency o main heo e ical
channels wi h he empi ical li e a u e. Some o he pape s
included in his SLR con ain also he empi ical pa ali-
da ing he p oposed heo y on he eal da a (Mukhe jee
2017; Lee & Yi 2018; Kühn & Viegelahn 2019; Cheng &
Xiao 2021; Wang e al. 2021b; Meh a 2022). In he li e a-
u e, he e a e also se e al e iews and me a-analyses on
p e ious empi ical esul s ob ained o GVCs’ impac on
employmen (Ca nei o e al., 2023; Hummels e al. 2018),
wages (Ca doso e al., 2020; Hummels e al. 2018), p o-
duc i i y (Mu akami & O suka 2020), o all he h ee
(Radło, 2016; Shingal 2015). The empi ical e idence sup-
po bo h he nega i e and posi i e p edic ion om he
heo e ical models. Acco ding o me a-analysis by Ca -
nei o e al., (2013) he a e age employmen e ec based
on 51 empi ical s udies was no s a is ically di e en
om ze o. Simila esul s we e ound o wages by Ca -
doso e al. (2021). I was exac ly due o he di e en signs
o e ec s ob ained o di e en coun ies’ de elopmen
le els, sec o s, skills, and le els o analysis. I suppo s
he heo e ical esul s in he sense ha he e a e winne s
and lose s o GVCs and ha he o e all sign o he agg e-
ga e impac may be lipped by e.g. policies suppo ing he
posi i e e ec s.
To gi e an example o an empi ical s udy dis inguish-
ing pa icula channels o employmen e ec , on he
sample o 39 coun ies Jiang (2015) examines his e ec
ela ed o in e na ional ade in in e media e inpu s no
only domes ically bu also in pa ne and hi d coun-
ies, going beyond he di ec consequences o impo s
(subs i u ion e ec ) and expo s (compe i i eness e ec ).
Fo ins ance, coun y’s pa icipa ion in GVCs h ough
expo s may expand employmen no only a home bu
also in supplie coun ies, hanks o he impo con en
o expo s. This is an example when he e is a ansmis-
sion o he consequences o inc ease in GVC pa icipa-
ion o one ac o o he o he pa icipan s h ough he
alue chain. To dis inguish be ween he esponse o
wages, employmen , and p oduc i i y o GVCs pa icipa-
ion and sepa a e he indi ec channels (like e.g. p oduc-
i i y e ec changing wages and employmen demand)
Szymczak and Wolszczak-De lacz (2022) es ima e a sys-
em o mu ually ela ed equa ions o 43 coun ies. Nex
o he undoub edly posi i e ela ion be ween GVC’s pa -
icipa ion and p oduc i i y, he esul s o employmen
9 Page 22 o 25
S.Szymczak
and wages a e mixed, depending on e.g. ype o GVCs’
in eg a ion o de elopmen o he coun ies.
Rega ding he o he ac o s conside ed in his e iew,
o ins ance, Sly and Sode be y (2014) ind ha mul i-
na ional US i ms in au omo i e indus y alloca e hei
highe -ma kups p oduc ion in he coun ies whe e he
wo ke s ha e lowe ba gaining powe , pu posely o a oid
sha ing pa o he ma kups h ough he ma kup-e ec .
The WBG epo (2023) is posi i e abou he echnology
and inno a ion ans e h ough he GVCs o de eloping
coun ies (p oduc i i y-enhancing e ec ), including posi-
i e spillo e s o domes ic pa s o he chain (no di ec ly
in ol ed in GVCs). On he o he hand, he sys ema ic li -
e a u e e iew on empi ical e idence in his pa icula
sub opic p o ided by De Ma chi e al., (2018) show ha
in abou hal o analysed cases hese oppo uni ies we e
no well used. Majo i y o s udies linking GVCs posi ion
wi h p oduc i i y and wages adop linea app oach ( o
e iew see e.g. Fays e al. 2020) bu he mo e ecen show
suppo o he smile cu e concep (Szymczak e a.,
2022; WBG, 2017). In e es ingly, WBG (2017) p o ides
also empi ical examples o coun y-indus ies whe e he
smile cu e o wages is in e ed (wi h he ends down),
which is a case no co e ed by he heo y.
5 Conclusions
This s udy p esen s a sys ema ic e iew o p o ide ellow
esea che s and policymake s wi h a collec ion o heo-
ies explaining he possible impac o global alue chains
on labou ma ke ou comes. The esea ch ques ion was:
How do GVCs a ec wages, employmen demand, and
p oduc i i y? The heo y p o ides di e en mechanisms
and channels leading o ambiguous o e all esul s, as p e-
sen ed in he Fig.2. The complexi y o he pic u e s ems
om he ac ha he h ee examined aspec s: wages,
employmen , and p oduc i i y a e in e connec ed, and
changes in one may al e ano he . Due o he e y na u e
o he analysed phenomenon—a complex s uc u e o
ac o s and ela ions—many addi ional indi ec e ec s a e
a play. Conside ing all he abo e, a sligh change in he
assump ions o heo e ical models may lead o di e en
p edic ions, as shown in he e iew. The mo e, his s udy
may be use ul o heo is s, empi ical economis s, and
policy make s as an up- o-da e o e iew o heo e ical
de elopmen s and con enien map o po en ial ou comes
expec ed om in ol emen in in e na ional p oduc ion
sha ing.
The s udy shows he sho comings o he exis ing heo-
ies. Many models a e buil as No h–Sou h models, ye
he conclusions a e d awn only o he de eloped coun y.
O iginally i was mo i a ed mos ly by pe cei ed h ea s o
low-skill wo ke s, whose jobs we e o sho ed o de eloping
coun ies. Models wi h se ings like No h–No h a e a e,
and e en a e a e Sou h-Sou h models, while nowadays
he in e media e ade occu s in many o ms, a ec ing a -
ious ac o s. This shows a clea esea ch gap o heo e ical
s udies o ill in. Mo eo e , only one s udy (Zi 2020) explic-
i ly dis inguishes di e en ypes o GVCs (spide s snake)
when analysing labou ma ke esponse o GVCs. Less
agg ega ed le els o analysis could cons i u e a g ea inpu
o he discussion, as he labou ma ke e ec s can be e y
speci ic. Among ew excep ions he e a e: employing ei he
a wo ke pe spec i e (e.g. he ai wage concep in Egge
& K eickemeie 2017; o Roy channel in Lee & Yi 2018) o
i m-le el pe spec i e (e.g. Wang e al. 2021b; o Van Ass-
che & Gangnes 2019).
Fu he mo e, his e iew con ibu es o he unde s and-
ing o di e en dimensions o GVCs, like pa icipa ion o
posi ion, and he impo ance o dis inguishing hem in
examining labou ma ke ou comes. Theo e ical li e a u e
analysing he labou ma ke e ec s o bo h GVCs pa -
icipa ion and posi ion is ela i ely sca ce and seems o lag
behind empi ical e idence on his opic. Acco ding o he
esul s o his SLR, i is ano he esea ch di ec ion which
seems o be unde de eloped. The unde s anding o ela ion
be ween GVCs posi ion and labou ma ke is especially
wo h u he explo a ion as he e iew showed ha exis -
ing e idence adop di e en and e en con adic ing pe -
spec i es on he de ini ion o upg ading he GVCs posi ion.
This ema k may be pa icula ly ele an o policymake s
o ind an e ec i e pa h owa d imp o emen o indus ies’
posi ion. F om he policy poin o iew, he e a e wo issues
appea ing in he analysed s udies mos o en as c ucial
o mi iga ion o nega i e GVCs’ e ec s/enhancemen o
posi i e e ec s. One is labou mobili y be ween indus ies
which helps o enable he posi i e complemen a i y e ec .
The o he conce ns echnology abso p ion and lea ning
h ough pa icipa ion in a ne wo k. These a e he channels
which should be suppo ed.
Acknowledgemen s
The au ho is g a e ul o he pa icipan s o he 24 h Eu opean T ade S udy
G oup Annual Con e ence o hei aluable commen s and sugges ions
ega ding he s udy p esen ed in his a icle.
Au ho con ibu ions
All analysis and manusc ip w i ing we e done by SS.
Funding
The au ho has no hing o epo .
A ailabili y o da a and ma e ials
All da a gene a ed o analysed du ing his s udy a e included in his published
a icle.
Decla a ions
Compe ing in e es s
The e a e no compe ing in e es s.
Page 23 o 25 9 The impac o global alue chains onwages, employmen , andp oduc i i y: asu ey o heo e ical…
Recei ed: 4 No embe 2023 Accep ed: 13 May 2024
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