Do global value chains and local capabilities matter for economic complexity in EU regions?

Ron Boschma; Eduardo Hernández-Rodríguez; Andrea Morrison; Carlo Pietrobelli

doi:10.53330/BAGR7168

Do global value chains and local capabilities matter for economic complexity in EU regions?

Ron Boschma, Eduardo Hernández-Rodríguez, Andrea Morrison, Carlo Pietrobelli

Research output: Working paper / Preprint › Working paper

245 Downloads (Pure)

Abstract

This paper combines insights from the literatures on Global Value Chains (GVC), Economic Complexity and Evolutionary Economic Geography to assess the role of GVC participation and regional capabilities in fostering economic complexity in EU NUTS-2 regions. Our results suggest there is no such thing as a common path towards economic complexity across EU regions. Low-income regions manage to benefit from both regional capabilities and GVC participation. In contrast, high-income regions rely more on their existing local capabilities rather than on GVC participation.

Original language	English
Publisher	UNU-MERIT
DOIs	https://doi.org/10.53330/BAGR7168
Publication status	Published - 29 Jan 2025

Publication series

Series	UNU-MERIT Working Papers
Number	002
ISSN	1871-9872

JEL classifications

b52 - "Current Heterodox Approaches: Institutional; Evolutionary"
f23 - "Multinational Firms; International Business"
o19 - "International Linkages to Development; Role of International Organizations"
o33 - "Technological Change: Choices and Consequences; Diffusion Processes"
r10 - General Regional Economics (includes Regional Data)

Keywords

Economic complexity
evolutionary economic geography
global value chains
relatedness
EU regions
economic upgrading

Access to Document

10.53330/BAGR7168Licence: CC BY-NC-SA

wp2025-002Final published version, 1.49 MBLicence: CC BY-NC-SA

https://unu-merit.nl/publications/wppdf/2025/wp2025-002.pdfLicence: CC BY-NC-SA

Cite this

@techreport{97bb3deed33d41e98493c4eec15683db,

title = "Do global value chains and local capabilities matter for economic complexity in EU regions?",

abstract = "This paper combines insights from the literatures on Global Value Chains (GVC), Economic Complexity and Evolutionary Economic Geography to assess the role of GVC participation and regional capabilities in fostering economic complexity in EU NUTS-2 regions. Our results suggest there is no such thing as a common path towards economic complexity across EU regions. Low-income regions manage to benefit from both regional capabilities and GVC participation. In contrast, high-income regions rely more on their existing local capabilities rather than on GVC participation.",

keywords = "Economic complexity, evolutionary economic geography, global value chains, relatedness, EU regions, economic upgrading",

author = "Ron Boschma and Eduardo Hern{\'a}ndez-Rodr{\'i}guez and Andrea Morrison and Carlo Pietrobelli",

year = "2025",

month = jan,

day = "29",

doi = "10.53330/BAGR7168",

language = "English",

series = "UNU-MERIT Working Papers",

publisher = "UNU-MERIT",

number = "002",