New patterns in the position of CEE countries in global value chains: functional specialisation approach

Research background: High servitisation of manufacturing makes it impossible to separate services from manufactured goods properly, which implies difficulties in the assessment position country on smile curve, i.e. proper assignment products or one industrial process steps: pre-production, pure fabrication post-production services. Therefore, we propose use business functions industries identified with aid labour market data rather than classification order create a more appropriate measure countries GVCs.
 Purpose article: We aim identify and analyse patterns functional specialisation for eight Central Eastern European Countries (CEECs) ? Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia Slovenia both at industry level. In addition, Germany, serves as reference country.
 Methods: To assess patterns, employ methodology proposed by Timmer et al. (2019a). It allows us obtain indices four different management, R&D, marketing, fabrication. compute them, combine two sources domestic value added decomposed sectoral input-output tables (the World Input Output Database) Occupations Database built up (2019a).
 Findings & added: Our research shows very heterogeneous pattern CEEC countries' GVCs taking into account their levels. Poland focus primarily low value-added processes, Baltic specialise management services, Hungary Latvia gain marketing Republic win R&D activities. indicate that some CEE (Poland, Slovakia) could be stuck trap, our approach valuable tool assessing coming out it.