The Determinants of Global Value Chain Participation: Globalization and Economic Development Stages

One of the recent meaningful changes in the development of globalization can be represented by structural changes in the global production network, such as the establishment, development, expansion, and reorganization of the so-called Global Value Chain(GVC). This study analyzed the determinants of the GVC participation rate by dividing it into the entire period from 2000 to 2019, the stages of globalization(Hyperglobalization and slowbalization), and stages of economic growth(developed and non-developed countries). In all the study periods, trade openness was the only variable that had a significant positive(+) effect on the determinants of the GVC participation rate. And other variables showed different results depending on the stage of globalization or economic growth. The results of this study suggest that the factors that promote or reduce the GVC participation rate differ depending on the stage of globalization or economic growth, so that the government requires to set up appropriate policies according to the global economic environment and the country's economic situation.