Does vertical specialisation increase productivity?
By C. Constantinescu, Aaditya Mattoo, Michele Ruta. World Economics, 2017
133 citations recorded by the source corpus.
This paper investigates the impact of global value chain participation on productivity, using data on trade in value added from the World Input-Output Database. The results based on a panel estimation covering 13 sectors in 40 countries over 15 years suggest that participation in global value chains is a significant driver of labor productivity. Backward participation in global value chains, that is, the use of imported inputs to produce for exports, emerges as particularly important. An increase by 10 percent in the level of global value chain participation increased average productivity by close to 1.7 percent.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/8064ed477e946d7d45e3962bcd0320e258284844
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Citations in the corpus
- Do Global Value Chains Enhance Economic Upgrading? A Long View (2020, methodology): “Constantinescu, Mattoo, and Ruta (2019) find that participation in GVCs is a significant driver of labour productivity in a set of 40 countries since 1995, in particular finding strong effects of the use of imported inputs in production for exports.1 Lopez-Gonzalez (2016) also finds (short-run)…”
- Determinants of Global Value Chain Participation: Cross-Country Evidence (2020, unknown): “Empirical evidence across and within countries confirms that GVC participation fosters productivity, value-added, and growth (Constantinescu, Mattoo, and Ruta 2019; World Bank 2019; Stolzenburg, Taglioni, and Winkler 2019; Pahl and Timmer 2020).”