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Determinants of Togo’s Participation in Global Value Chains

International Journal of Economics and Management Studies
© 2023 by SSRG - IJEMS Journal
Volume 10 Issue 11
Year of Publication : 2023
Authors : Koffi Noel LOUTSOU
10.14445/23939125/IJEMS-V10I11P102
pdf
How to Cite?

Koffi Noel LOUTSOU, "Determinants of Togo’s Participation in Global Value Chains," SSRG International Journal of Economics and Management Studies, vol. 10,  no. 11, pp. 6-21, 2023. Crossref, https://doi.org/10.14445/23939125/IJEMS-V10I11P102

Abstract:

This research aims to identify the determinants of Togo’s participation in global value chains. To achieve this objective, an econometric analysis of time series is performed. The econometric model is based on the ARDL (autoregressive distributed lag) model developed by Pesaran and Shin (1999). The main results are as follows: Upgrading in the textile and clothing sector is a positive factor in GVC participation for Togo. Each improvement in the capital stock results in a country’s greater participation in GVCs, and the effect is more pronounced for the manufacturing and service sectors than for the agricultural and industrial sectors. Skilled labor favors Togo’s participation in GVCs, but low-skilled labor does not. Better institutional quality is linked to greater participation in GVCs. They mitigate the risk of non-performance and, in turn, favor participation in GVCs.

Keywords:

ARDL, Determinants, Global value chains, Togo, Upgrading.

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