Global Value Chains Participation during the COVID-19 Pandemic: A Dynamic Panel Approach

In recent decades, the emergence of global value chains (GVCs) has changed international trade patterns. Today, production goods involves sharing, which allows countries to trace value-added distribution trade. However, COVID-19 pandemic lowered intensity between and can disrupt many sectors. This study uses a dynamic panel approach with generalized method moments estimator investigate pandemic’s impact on GVC participation. We also whether gross domestic product (GDP) per capita may influence participation, use institutional quality as control variables. used Asian Development Bank Multi-Regional Input-Output (ADB MRIO) data for 2010–2020 period. employ backward forward linkage approaches based exports address overvaluation problems in exports. The empirical results illustrate that led decrease average. Furthermore, GDP plays significant role participation linkages higher-quality institutions.