Analysing the Macro-Level Determinants of Small and Medium Enterprises' Participation in Global Value Chains

This study examines macro-level determinants that affect small- and medium-sized enterprises’ (SMEs’) participation in global value chains (GVCs). The study is based on secondary data collected over the period of 2006–2021 across 136 countries. Panel data analysis based on generalized method of moments (GMMs) was employed to accomplish the objective of the study. The findings reveal macro-level factors such as political stability, higher economic growth, efficient logistics infrastructure, and preferential tariff schemes as key drivers for SMEs’ involvement in GVCs. Hence, the study recommends strengthening macro-level enablers such as political stability, economic growth, logistics infrastructure, and trade agreements to facilitate SMEs’ process in engaging with GVCs.