The causal relationship between global competitiveness and GVC participation in sub-Saharan Africa : a network approach

The current study examines the causal effect of global competitiveness and its pillars on the various indicators of the global value chain while also recognising the complexity of the system. The network approach is employed to reveal these impacts, and the study spanned 2007, 2010, 2012, 2014, 2016, and 2018 for 25 SSA countries for which data is available for logistic performance and competitiveness. The results indicate that in the complex network of the 12 pillars of GCI and the four indicators of GVC, there is a dichotomy of clusters for the constructs (i.e., GVC and GCI). An interesting revelation is that there are negative causal relationships between some GCI pillars, notably with market size. Further, other pillars also negatively influence the indicators of GVC. The findings reveal the need for governments to intensify their activist duties in order to improve competitiveness, especially those that enhance efficacy and productivity. To a large extent, those are factors, except for market size, from which benefits can flow to GDP and economic growth and development.