The Economic Modernization in the Global Value Chains

Abstract

The article is aimed at researching the essence, mechanisms for and ways of achieving modernization of the domestic economy provided integration into the global value chains. Features of mechanisms for achievement of technological updating of production in different countries are analyzed. Several types of economic modernization are generalized, in particular production processes, products, functional processes and the inter-sectoral level. The contemporary regularities of the value-added formation and the principles of transition to production with high added value are systematized. Features of influence of global value chains on internal economy through transmission mechanisms are demonstrated. The carried out analysis shows that the positive impact of integration into the global value chains on the internal economy depends on the absorption capacity of the national companies. It is determined that the achievement of economic modernization in the global value chains depends on the macroeconomic and institutional environment that determine the efficiency of both foreign direct investment and netization.

Keywords

• economic modernization
• value added
• global value chains
• technology transfer