ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Global Value Chains’ Participation and Logistics Performance in Post-Soviet Economies

Abdullaev Elbek Erkin Ugli

Correspondence: Abdullaev Elbek Erkin Ugli,

Graduate School of Humanities and Social Sciences, Saitama University, Saitama, Japan.

pdf (320.45 Kb) | doi:


Post-Soviet countries have never been analysed in the global value chain (GVC) context. Therefore, in this study, we evaluate the degree of backward participation of GVCs in the manufacturing sector of post-Soviet countries. We also examine the quantitative linkage between GVCs and host countries’ logistics performance as a service-link component. We used the UNCTAD-Eora GVC database and employed a structural gravity trade model. The results illustrate a positive correlation between GVC backward participation in manufacturing and income levels in the post-Soviet economies. The empirical estimation using the structural gravity trade model demonstrates a quantitative linkage between GVC backward participation and the logistics performance of the host country. The level of logistics performance accounts for 70–80 percent of the degree of GVC backward participation. Our findings’ major policy implication is that post-Soviet economies’ logistics performance should be improved by erasing the Soviet era’s negative legacy.


  Global value chains, Logistics performance, Post-Soviet countries, Manufacturing, Structural gravity trade model.


Kaldor, N. (1967). Strategic Factor in Economic Development. Ithaca, Cornell University.Rodrik, D. (2013). Unconditional convergence in manufacturing. Q J Econ, 128(1), 165–204.UNCTAD (2013). World investment report—global value chains: Investment and trade for development. New York and Geneva, The United Nations.Kimura, F. (2006). International production and distribution networks in East Asia: Eighteen facts, mechanics, and policy implications. Asian Econ Policy Rev, 1(2), 326–344.Kimura, F., Takahashi and Y., Hayakawa, K. (2007). Fragmentation and parts and components trade: Comparison between East Asia and Europe. N Am J Econ Finance, 18(1), 23–40.World Bank (2020). World development report 2020: Trading for development in the age of global value chains. Washington, The World Bank.Hummels, D., Ishii, J. and Yi, K.M. (2001). The nature and growth of vertical specialization in world trade. J Int Econ, 5, 75–96.Koopman, R., Powers, W., Wang, Z. and Wei, S.J. (2010). Give credit where credit is due: Tracing value added in global production chains. NBER Working Paper, No. 16426.Koopman, R., Wang, Z. and Wei, S.J. (2014). Tracing value-added and double counting in gross exports. Am Econ Rev, 104, 459–494.Jones, R.W. and Kierzkowski, H. (1990). The role of services in production and international trade: A theoretical framework, In: Jones, R.W. and Krueger, A. (eds.), The Political Economy of International Trade: Essays in Honor of Robert E. Baldwin. Oxford, Blackwell.Jones, R.W. and Kierzkowski, H. (2005). International trade and agglomeration: an alternative framework. J Econ, 10, 1–16.Deardorff, A.V. (2001). Fragmentation in simple trade models. N Am J Econ Finance, 12, 121–137.Gereffi, G. (2018). Global Value Chains and Development: Redefining the Contours of 21st Century Capitalism. Cambridge, Cambridge University Press.Taguchi, H. and Thet, M.S. (2021). Quantitative linkage between global value chains’ backward participation and logistics performance in the host country: a structural gravity model analysis of emerging ASEAN economies. Asia-Pacific Journal of Regional Science, 5, 453–475.Piermartini, R. and Yotov, Y.V. (2016). Estimating trade policy effects with structural gravity. WTO Staff Working Papers, ERSD-2016-10.Taguchi, H. and Amirjon, A. (2021). Manufacturing exports and institutional qualities in Central Asian countries. Asia-Pacific Journal of Accounting & Economics Online. Bank (2016). Making global value chains work for development. Washington: The World Bank.Casella B, Bolwijn R, Moran D, Kanemoto K (2019). Improving the analysis of global value chains: The UNCTAD-Eora Database. Transnatl Corp, 26(3), 115–142.Aslam, A., Novta, N. and Rodrigues-Bastos, F. (2017). Calculating Trade in Value Added. IMF Working Paper, No. 17/178.Levin, A., Lin, C.F. and Chu, C. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. J Econom, 108, 1–24.Choi, I. (2001). Unit root tests for panel data. J Int Money Finance, 20, 249–272.Maddala, G.S. and Wu, S.A. (1999). Comparative study of unit root tests with panel data and a new simple test. Oxf Bull Econ Stat, 61, 631–652.Im, K.S., Pesaran, M.H. and Shin, Y. (2003). Testing for unit roots in heterogeneous panels. J Econom, 115, 53–74.Taguchi, H. and Zhao, J. (2022). China's global value chain linkage and logistics performances in emerging ASEAN economies. International Studies of Economics, 17, 126–155.