Research background: There has been an extensive body of literature on the growing importance of global value chains (GVCs) in developed and emerging economies. This literature argues that GVCs significantly affect international trade patterns and open new possibilities for participating economies to increase both their exports? quantity and quality, acquire advanced production technologies and improve the overall economic performance. However, the empirical evidence from the Central and East European (CEE) countries, especially at the firm level is still relatively scarce. The majority of existing empirical studies on GVCs in the CEE countries are based on sectoral input-output data. Purpose of the article: In this article, we study the determinants of firm participation in GVCs using firm-level BEEPS data for 29 CEE countries. We hypothesize that larger, foreign-owned, more productive and innovative firms producing a limited range of products and employing skilled workers are more likely to be involved in GVCs. Methods: The intensity of participation in GVCs is measured by the usage of imported inputs and the intensity of exports. The empirical study uses the BEEPS firm-level data set for the period 2011?2014 and the probit estimation method. Findings & Value added: The assembled empirical evidence generally supports these hypotheses. In addition, we find that firms which participate in GVCs pro-duce a smaller range of products, which means that they concentrate on their core competencies. In particular, we find that the EU membership may facilitate participation in GVCs, especially for smaller firms in the CEE countries. This article adds to the existing literature by examining the firm-level determinants of participation in GVCs using the cross-country firm-level survey conducted by the EBRD and the World Bank.
Research background: In the era of globalization, there is a need to address decent work deficits in Global Value Chains (GVCs). The forms of working conditions reveal a broad dispersion of contents. The literature review exposes hardly any Europe-focused research assessing the socio-economic impact of global production links and going beyond their pure economic effects assessed in terms of employment, productivity or wages. Purpose of the article: This paper investigates how involvement in GVCs affects labor standards. In particular, we assess how the integration into GVCs impacts the probability of having indefinite type of employment contract, which stands for one of the decent work indicator. Moreover, we draw individual and firm-level characteristics determining the type of employment contract. Methods: We use linked employer-employee data from the Structure of Earnings Survey merged with industry-level statistics on GVCs based on World Input-Output Database ? the sample is composed of over 5 million workers from 10 Central and Eastern European countries (CEEC) observed in 2014. The involvement into GVCs is measured using a novel approach based on the concepts of global import intensity (GII). We employ logistic regression with robust standard errors. Findings & Value added: Controlling for individual and firm-level characteristics (sex, age, education level, length of service in enterprise, size of the enterprise) we find that greater integration into GVCs increases the probability of having temporary type of employment contact, mainly in tradable sectors. However, across CEE countries the relation between GVC and employment type is mixed. In this way we expand the existing literature by reporting the effects of GVCs on labor standards in CEEC.
Research background: Wage inequalities are still part of an interesting policy-oriented research area. Given the developments in international trade models (heterogeneity of firms) and increasing availability of micro-level data, more and more attention is paid to wage differences observed within and be-tween firms. Purpose of the article: The aim of the paper is to address the research gap concerning limited cross-country evidence on a nexus of wage inequality?global value chains (GVCs), analysed from the perspective of wage inequality components within and between firms. Methods: This paper uses a large employee?employer database derived from the European Structure of Earnings Survey (SES), combined with sector-level indicators of GVC involvement based on the World Input-Output Database (WIOD). As a result, a rich database covering more than 7.5 million observations is created. The regression-based decomposition modelling technique developed by Fiorio and Jenkins (2010) is used to identify the contributions of different factors to wage inequalities, focusing on the components within and between firms. Findings & value added: The analysis presented in this paper aimed to show the contribution of GVC involvement, among various other factors, to the observed inequality of wages. Due to the use of a rich database that merges employer and employee data, the effects materialised with respect to different types of wages could be analysed separately, in particular components between and within firms. The general conclusion from the regression-based decomposition in log wages is that GVCs contribute marginally to the observed wage inequality in the European sample analysed in this paper. Some differences confronting the components within and between firms (the latter dominates) are observed; there is also certain intra sample heterogeneity in the estimated results (e.g. due to sector type or country group), but the general result is robust.
This study examines the linkages between GVC involvement and wages in Poland given different wage bargaining schemes. The analysis is based on microdata from the European Structure of Earnings Survey for Poland combined with sectoral data from the World Input-Output Database. In particular, two measures of GVC involvement were used: the share of foreign value added (FVA) to export and the measure of traditional offshoring. The institutional settings are represented by the wage bargaining scheme which reflects the level at which the collective pay is agreed. The results show that despite the lack of a significant relationship between the sectoral involvement in GVC and the level of wages in Poland, on average workers covered by the collective pay agreement receive higher wages. Moreover, the wage-GVC nexus is conditioned on the type of pay agreements: the positive wage effect from national agreements is eliminated for a certain range of GVC intensity.
On January 1, 2023, the German Act on Corporate Due Diligence in Supply Chains (LkSG) entered into force. It is the most important step taken so far by the German legislature in terms of promoting corporate sustainability and protecting human rights in globalized supply chains. Unfortunately, however, it did not make use of the opportunity to take on a pioneering role in the broader comparative context. The authors conduct a critical analysis of the sustainability concept of the Act, as well as its provisions on scope and enforcement. In both aspects, the Act falls short of expectations; it does not introduce a comprehensive concept of sustainability, small and medium-sized enterprises are excluded from the scope of application, and comprehensive due diligence along the supply chain is not achieved. On the enforcement level, the main weakness of the LkSG lies in its exclusion of civil liability.
In the face of growing geopolitical competition and disruptions in global value chains, the European Union (EU) has undertaken measures to strengthen economic resilience by encouraging the relocation of production to Member States. This article analyses the impact of the EU’s open strategic autonomy policy on production relocation processes in the context of the United States–China strategic rivalry and global challenges such as the pandemic, Russia’s invasion of Ukraine, and climate change. Based on an analysis of strategic documents and legislative instruments, an attempt is made to verify two hypotheses regarding the effectiveness of the EU’s production relocation policy, its external conditions, and its varied impact on individual economic sectors. The conclusions indicate that although the EU has introduced a range of instruments designed to enhance supply chain resilience, their effectiveness is limited by geopolitical and economic factors, and their actual impact on business decision-making varies across sectors. The article emphasises the need for further research into the effectiveness of the instruments implemented and their adaptation to sectoral specificities within an evolving international environment.
Purpose: This study examines the geo-economic transformation of the Russian Federation’s external economic relations under conditions of full-scale war and international sanctions, with a particular focus on energy exports as the principal factor sustaining foreign trade performance and external economic resilience. Method: The research applies descriptive statistical analysis, comparative trade analysis, correlation analysis, and scenario-based assessment. Empirical evidence is drawn from official international databases (World Bank, UN Comtrade, Eurostat), energy market statistics, and sanctions monitoring platforms. The relationship between Russia’s foreign trade balance and global oil prices is assessed using Pearson and Spearman correlation coefficients for the period 2020–2024. Findings: The results show that the relative stability of Russia’s foreign trade during the war period is not the outcome of structural adaptation or diversification, but rather reflects the dominant role of energy exports. A strong positive correlation between oil prices and the trade balance confirms that export revenues and the formal trade surplus are largely price-driven. Simultaneously, high-technology imports, investment flows, and integration into global value chains display systematic degradation. Theoretical implications: The study contributes to geo-economic and sanctions literature by empirically substantiating the resource-based nature of external economic resilience under conditions of coercive economic pressure. It reinforces classical geo-economic frameworks linking natural resources, trade structures, and military-economic capacity, demonstrating their continued relevance in contemporary wartime economies. Practical implications: The findings provide policy-relevant insights into the effectiveness and structural limitations of sanctions regimes in resource-dependent economies. They may inform policymakers, international organizations, and analysts in refining sanction design, energy market regulation, and long-term strategies aimed at reducing vulnerabilities associated with resource rent dependence. Value: By combining geo-economic theory with empirical validation, the study explains the apparent paradox between severe sanctions and the continued functioning of Russia’s external trade.
UK
Мета дослідження: полягає в аналізі геоекономічної трансформації зовнішніх економічних зв’язків російської федерації в умовах повномасштабної війни та міжнародних санкцій з акцентом на роль експорту енергоносіїв як ключового чинника збереження зовнішньоторговельної життєздатності. Методологія дослідження: ґрунтується на описовому статистичному аналізі, порівняльному аналізі зовнішньої торгівлі, кореляційному аналізі та сценарному підході. Емпіричну базу становлять дані міжнародних статистичних ресурсів (World Bank, UN Comtrade, Eurostat), енергетичних ринків і санкційних моніторингів. Зв’язок між сальдо зовнішньої торгівлі рф та світовими цінами на нафту у 2020–2024 роках оцінено з використанням коефіцієнтів кореляції Пірсона та Спірмена. Результати дослідження: свідчать, що відносна стійкість зовнішньої торгівлі рф у воєнний період має виразно ресурсну, а не структурну природу. Виявлено сильну позитивну кореляцію між цінами на нафту та торговельним сальдо, що підтверджує ціновий характер експортних доходів. Водночас зафіксовано деградацію високотехнологічного імпорту, інвестиційних зв’язків і участі у глобальних ланцюгах створення доданої вартості. Цінність дослідження: полягає в поєднанні геоекономічної теорії з емпіричною валідацією, що дозволяє пояснити парадокс збереження формальної зовнішньоторговельної стійкості рф в умовах жорсткого санкційного тиску.
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