Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314434 
Year of Publication: 
2025
Series/Report no.: 
Sustainable Global Supply Chains Discussion Papers No. 8
Publisher: 
Research Network Sustainable Global Supply Chains, Bonn
Abstract: 
Recent technological advances and policy initiatives present Africa with enormous growth potential from participating in global value chains (GVCs). However, the widening income inequality is raising questions as to whether participation in GVCs plays any role in this observed phenomenon. Despite the increased attention on regional and global value chains, and on income inequality in Africa, little attention has been given to investigating the potential nexus between both. This study investigates the impacts of GVC participation on income inequality and the underlying mechanisms in Africa. We applied the instrumental variable (IV) approach to address potential endogeneity between GVC participation and income inequality. We find that participation in GVCs substantially reduces income inequality in Africa, which is largely through increased relative prices of exports, access to improved technologies and economic upgrading.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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