Industrial Policy and Participation in Global Value Chains: The Role of State-Society Relations in Shaping Policies and Outcomes

Industrial Policy and Participation in Global Value Chains: The Role of State-Society Relations in Shaping Policies and Outcomes | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Industrial Policy and Participation in Global Value Chains: The Role of State-Society Relations in Shaping Policies and Outcomes Mohamed Ismail Sabry This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8779037/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper uses a novel theoretical framework explaining how state-society relations shape the way industrial policies lead to varying benefits from participation in Global Value Chains (GVCs). The framework focuses on state-business-labor relations (SBLR) as an institutional environment that is shaped by power relations among contending actors as reflected in non-state-actors’ ability to organize and push their interests. Several GVC participation benefits indicators are developed. Then, these indicators and others are used in conducting statistical and regression analysis using mainly the TSLS model. The regressions test the effect of the interaction between horizontal industrial policies and SBLR modes on GVC participation benefits. The findings suggest that balanced-SBLR mode, featuring more balanced-power relations between state and non-state actors, offer the most conducive arrangement in realizing the benefits from recommended industrial policies. JEL Codes: O43, O25, O38, O57 State-Society Relations Global Value Chains Industrial Policy Manufacturing Productivity Inequality Institutions Full Text Supplementary Files AppendicesSBLRIPGVCFeb2026.docx Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8779037","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":587670779,"identity":"8b0cc6c9-e30c-4af0-a43a-6e1a750105c0","order_by":0,"name":"Mohamed Ismail Sabry","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAyklEQVRIiWNgGAWjYDACZjBikDMA8wwsiNdibACmDCSItoghcQOYYiBCi247+8PPhXsOp29n7z+64UeBBAN/e3cCXi1mh3mMpWc8O5y7s+cw280eoMMkzpzdQEgLgzTPgcO5G24ks93gAWoxkMglpIX98W+glnQDoJabf4jTwmAGsiUBpOU2kbbwmFnPOJBuuOHMYbPbMgYSPIT9cv7449sFB6zlDY43Prv55o+NHH97L34tUNAMZ/EQoxwE6ohVOApGwSgYBSMRAAADS0b9vFNSxgAAAABJRU5ErkJggg==","orcid":"https://orcid.org/0000-0002-0638-5488","institution":"Philipps-Universitat Marburg","correspondingAuthor":true,"prefix":"","firstName":"Mohamed","middleName":"Ismail","lastName":"Sabry","suffix":""}],"badges":[],"createdAt":"2026-02-03 17:59:51","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8779037/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8779037/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":106724838,"identity":"d46b3a8e-ba88-4fb2-b544-e24fbbe75e41","added_by":"auto","created_at":"2026-04-12 18:30:01","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":581446,"visible":true,"origin":"","legend":"","description":"","filename":"SBLRIPGVCwoAPPwAuthorFeb2026.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8779037/v1_covered_84b1e818-497a-436e-af62-c85903b326fa.pdf"},{"id":102564962,"identity":"8818b316-0dab-4888-bbde-714d2c5ee7d8","added_by":"auto","created_at":"2026-02-13 05:34:27","extension":"docx","order_by":4,"title":"","display":"","copyAsset":false,"role":"supplement","size":60321,"visible":true,"origin":"","legend":"","description":"","filename":"AppendicesSBLRIPGVCFeb2026.docx","url":"https://assets-eu.researchsquare.com/files/rs-8779037/v1/25e5395883d1b82bc5ffcaba.docx"}],"financialInterests":"","formattedTitle":"Industrial Policy and Participation in Global Value Chains: The Role of State-Society Relations in Shaping Policies and Outcomes","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"State-Society Relations, Global Value Chains, Industrial Policy, Manufacturing, Productivity, Inequality, Institutions","lastPublishedDoi":"10.21203/rs.3.rs-8779037/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8779037/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper uses a novel theoretical framework explaining how state-society relations shape the way industrial policies lead to varying benefits from participation in Global Value Chains (GVCs). 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