Research Article

DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?

Volume: 27 Number: 4 October 30, 2026
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DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?

Abstract

Services such as information and communication technologies, logistics, and finance play a critical and increasing role in the coordination of fragmented production stages across countries. Service sectors enable countries to integrate more easily into global value chains and operate more effectively within international production networks, thereby supporting productivity gains, economic growth, and higher GVC participation. Therefore, service sectors are expected to play a key role in shaping countries’ involvement in GVCs. This study explores the effects of the share of service sectors on manufacturing GVC participation. The study also explores heterogeneity in this effect and analyzes 35 developed and 138 developing countries separately over the years 1990-2023. The results suggest that the share of service sectors increases all types of manufacturing forward GVC participation and manufacturing complex backward GVC participation and decreases manufacturing simple backward GVC participation. In other words, service sectors can be seen as a complement to manufacturing activities in the forward linkages and a substitute for imported intermediates in global production and trade networks. This reflects the key role of services such as digital infrastructure, logistics, and finance in supporting entry into manufacturing GVCs. The effect is driven mainly by developing countries. Therefore, in addition to their direct economic benefits, services contribute to more and deeper participation in manufacturing GVCs in developing countries.

Keywords

References

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Details

Primary Language

English

Subjects

Economic Theory (Other)

Journal Section

Research Article

Publication Date

October 30, 2026

Submission Date

April 29, 2026

Acceptance Date

July 29, 2026

Published in Issue

Year 2026 Volume: 27 Number: 4

APA
Tat, P. (2026). DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION? Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 27(4), 1253-1267. https://doi.org/10.37880/cumuiibf.1940396
AMA
1.Tat P. DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION? Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2026;27(4):1253-1267. doi:10.37880/cumuiibf.1940396
Chicago
Tat, Pınar. 2026. “DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?”. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi 27 (4): 1253-67. https://doi.org/10.37880/cumuiibf.1940396.
EndNote
Tat P (October 1, 2026) DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION? Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi 27 4 1253–1267.
IEEE
[1]P. Tat, “DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?”, Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi, vol. 27, no. 4, pp. 1253–1267, Oct. 2026, doi: 10.37880/cumuiibf.1940396.
ISNAD
Tat, Pınar. “DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?”. Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi 27/4 (October 1, 2026): 1253-1267. https://doi.org/10.37880/cumuiibf.1940396.
JAMA
1.Tat P. DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION? Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2026;27:1253–1267.
MLA
Tat, Pınar. “DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION?”. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, vol. 27, no. 4, Oct. 2026, pp. 1253-67, doi:10.37880/cumuiibf.1940396.
Vancouver
1.Pınar Tat. DO SERVICE SECTORS BENEFIT MANUFACTURING GLOBAL VALUE CHAIN PARTICIPATION? Cumhuriyet Üniversitesi İktisadi ve İdari Bilimler Dergisi. 2026 Oct. 1;27(4):1253-67. doi:10.37880/cumuiibf.1940396

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