| Abstract [eng] |
Evaluation of Baltic States Participation in Global Value Chains 68 pages, 10 pictures, 7 tables, 50 references. The main purpose of this master thesis is to evaluate changes of Baltic States participation in global value chains. The thesis consists of 3 main parts. First part analyses the concept of global value chains reviews and summarizes methods used in scientific literature to evaluate participation in global value chains. Empirical research model is provided in the second part of the thesis. Third part of the thesis describes concluded empirical research, which helped to identify Baltic States participation level in global value chains, to evaluate the participation ratio dynamics and main reasons that determined changes in value added elements. Scientific research analysis provides explanation on global commodity chains evolution to global value chains. It also summarizes methods that are used to evaluate global value chains, explains the switch from vertical specialization ratio to gross exports decomposition to value added elements. Empirical research results showed that Baltic States participation in global value chains was growing during the research period. The biggest driver behind the growth was determined by foreign value-added increase in countries exports. Research showed that during the research period, the highest participation in global value chains was reached in year 2011 and 2012 and had a tendency of decreasing participation in the future years. In Estonia and Latvia decrease was determined by downfall of foreign value added in countries exports. While in Lithuania decrease was determined by decline of domestic value added during last 3 years. In 2014 decomposition of value added on country level showed the intensity of regional trade flow in comparison with countries that are further away geographically. Gross exports decomposition into value added elements revealed that a major part of foreign value added was impacted by value added originating from third countries. The growth of double counted value added was observed over different economic sectors, which indicated that countries tend to participate in longer global value chains. The author believes that research results could be useful to identify causal relationship between changing participation and labor productivity. Concluded research results and method can be used for detailed evaluation of services sector participation in global value chains or to compare the outcomes received while using different data bases. |
