Value added and participation in global value chains: The case of Spain

Following Koopman, Wang, and Wei and using the data and indicators derived from the international input–output tables of the World Input–Output Database, this paper addresses the participation of the Spanish economy and its sectors in global value chains (GVCs) during the period 1995–2011 and its implications for the value added content of trade. The analysis reveals the increasing integration of the country in GVCs and the heterogeneity between manufacturing and services in their vertical specialisation and their contribution to value added. This paper also explores the link between the use of foreign factors and export performance at the industry level and finds that this type of involvement in GVCs is positively correlated with increases in the domestic value added content of Spanish exports. © 2018 John Wiley & Sons Ltd