Productivity Growth and Spillovers across European Industries: A Global Value Chain Perspective Based on EURO KLEMS

Weilin Liu, Qian Cheng and Robin Sickles
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Weilin Liu: Institute of Economic and Social Development, Nankai University
Qian Cheng: Institute of Economic and Social Development, Nankai University

Working Papers from Rice University, Department of Economics

Abstract: The development of production networks has promoted knowledge flows and technology diffusion among industries over the past decades, which affects the productivity growth for most countries. This paper examines productivity growth in the presence of inter-sectoral linkages. We construct a spatial production model with technological spillovers and productivity growth heterogeneity at the industry-level. We use the global value chain (GVC) linkages from inter-country input-output tables to model the technological interdependence among industries, and estimate the total factor productivity (TFP) growth and spillover for the European countries. We find that the spillover effects from intermediate inputs is significant. There is a network effect of TFP growth from one country to another through input-output linkages. Our paper provides a better understanding of the impact of spillover effects on TFP growth in the context of GVCs.

JEL-codes: C23 C67 O47 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-eec, nep-eff, nep-int, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ecl:riceco:22-001

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