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Firm innovation and global value chain participation

Ketan Reddy (), Radeef Chundakkadan () and Subash Sasidharan ()
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Ketan Reddy: Indian Institute of Technology Madras
Radeef Chundakkadan: Indian Institute of Technology Bhilai

Small Business Economics, 2021, vol. 57, issue 4, No 20, 1995-2015

Abstract: Abstract The objective of this paper is to examine the relationship between innovation and firms’ participation in global value chains (GVCs). To achieve this objective, we use rich firm-level data from the World Bank Enterprise Survey (WBES), spanning the period of 2006–2017, belonging to 90 countries. Accounting for endogeneity arising from reverse causality, our study finds firm innovation to be a driver of firm GVC participation across countries. These findings are robust to alternative measures of innovation and various sub-sample analysis.

Keywords: Global value chains; Innovation; Cross-country; F14; O30; D22; F61; O50; L26 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s11187-020-00391-3

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