Towards more (un)balanced trade. Production linkages between China and the Visegrad countries: country-level and sector-level analysis

Abstract

ABSTRACTThis article presents the Visegrad Group member countries with special focus on the role of these countries in global value chains (GVCs). The goal of this paper is to analyse the role these states play in global production linkages and evaluation of connections between the VG states and China. We verified two hypotheses: (1) the Visegrad countries have deteriorated their positions in GVCs in relation to China recently; (2) the Visegrad states have become more dependent on Chinese value added in selected sectors. The analysis consists of two steps. Firstly, we evaluated the role of the Visegrad countries in international production linkages with China using value-added foreign trade using country-level approach. Secondly, we focused on the sectoral links between China and the Visegrad countries.