Global Value Chain Participation and the Labour Share: Industry‐level Evidence from Emerging Economies

Participation in global value chains (GVCs) has been proposed as a central means for emerging economies to develop and technologically upgrade. However, the effects of GVCs on income distribution South remain underexplored. This article presents an econometric analysis determinants labour share seven period 1995–2014. Drawing industry-level data from input-output tables, authors focus how GVC participation — particular offshoring production advanced affects different skill groups within manufacturing service industries. They also estimate productivity, real wages capital–value added ratio, shed further light channels through which affect share. In both industry groups, findings show that integration into with negative effect economies, particularly medium-skilled workers. contrast, higher union density government consumption spending have positive Thus, loses out relative capital becomes more integrated across borders.