Impacts of global value chain participation on current account imbalance: Evidence of ASEAN countries


Authors

  • Tran Manh Ha Banking Academy of Vietnam
DOI: https://doi.org/10.57110/jebvn.v4i1.293

Keywords:

Global value chain, current account imbalance, ASEAN

Abstract

In the past decade, the tendency of deeper participation in the global value chain and current account imbalance are two prominent features of the global economy. Using data of the South-East Asia (ASEAN) countries from 2007 to 2019 and the ordinary least squares (OLS) regression model, this research aims to find the correlation between these two phenomena in these countries. The results of the study show that if the participation in the global value chain will impact the current account balance of those ASEAN countries. Specifically, if a country participates in the forward linkage of the value chain, the country’s current account will increase significantly. Conversely, if the country’s position in the supply chain is backward linkage, the current account will be negatively impacted. To deal with current account imbalance, ASEAN governments need to implement a set of policies to strengthen forward linkages and control backward linkages.

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Published

25-02-2024

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How to Cite

Tran Manh Ha. (2024). Impacts of global value chain participation on current account imbalance: Evidence of ASEAN countries. VNU JOURNAL OF ECONOMICS AND BUSINESS, 4(1), 106. https://doi.org/10.57110/jebvn.v4i1.293

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Original Article