Abstract:

In this article, there are global value chain (GVC) analysis applied to recent trends in domestic employment connected with participation in GVC. Traditional statistics do not reveal the full nature of how consumption in one country may drive production and therefore, sustain employment in economies further up the value chain. The aim of this paper is to identify which factors have the greatest impact on share of domestic employment embodied in foreign final demand. The analysis covers the years 2005-2015 for the European Union countries. The results of estimated model indicate that there are a significant differences  between the developed countries of the EU-15 and the developing countries of the EU-10 on the nature of the participation in the GVC, as well as the impact on domestic employment engaged in the GVC.