Global Value Chain Integration and Productivity: The Case of Turkish Manufacturing Firms

Yilmaz Kilicaslan, Ugur Aytun and Oytun Meçik

No 1283, Working Papers from Economic Research Forum

Abstract: In this study, we examine how firms’ positions (supplier, consumer, or both) in both global and domestic value chains (GVC andDVC) affect their productivity. This is said to be the first attempt in exploring the impact of integration of firms to the GVCs on productivity generation in Turkish manufacturing industry at the firm level. The analysis is based on firm level data obtained from Turkish Statistical Institute (TurkStat) and covers the period from 2003 to 2015. The data used in the analysis includes all firms employing 20 or more employees in Turkish manufacturing industry. Our findings based on both fixed-effects and GMM estimations show that while supplier position on domestic chain has negative effect on productivity, the same position in GVC vanishes this effect. Consumer position in the GVC, on the other hand, provide more benefits to SMEs than to large-scale firms.

Pages: 40 pages
Date: 2019, Revised 2019
New Economics Papers: this item is included in nep-ara, nep-eff, nep-int, nep-sbm and nep-tid
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Journal Article: Global value chain integration and productivity: the case of Turkish manufacturing firms (2021)
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