Quantifying the productivity e ects of global value chains

Sara Formai and Filippo Vergara Caffarelli

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: This work analyses the relationship between international fragmentation of production and productivity growth. To identify the impact of fragmentation on productivity growth,we employ the methodology proposed in a different context by Rajan and Zingales (1996). In particular we interact the length and the width of sectoral production chains with a measure of countries' involvement in international fragmentation of production. We find evidence indicating that off-shoring increases labour productivity and total factor productivity in the externalising country.

Date: 2015-12-11
New Economics Papers: this item is included in nep-eff and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1564

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