A Portrait of Firms Participating in Global Value Chains

Davide Rigo ()
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Davide Rigo: IHEID, The Graduate Institute of International and Development Studies, Geneva

No 01-2017, CTEI Working Papers series from Centre for Trade and Economic Integration, The Graduate Institute

Abstract: This paper presents new stylized facts on developing-nation firms that both import and export, drawing on data from the World Bank's Enterprise Surveys. Using a sample of 124 developing nations, I show that such two-way trading firms, a proxy for global value chains (GVC) participation, are more likely to run training programs, use foreign-licensed technology, possess quality certifications, and communicate with customers and suppliers via the internet. Using the same sample, I also show that local suppliers, i.e. non-trading domestic firms, are more likely to engage in internet-based communication, and hold quality certificates and licences to foreign technology for stronger downstream input-output linkages with two-way trading firms. Overall, these results suggest that the fragmentation of production processes, both internationally and domestically, have significantly affected firms' characteristics in developing and emerging economies.

Keywords: Firm-level Evidence; Global Value Chains; Technology Adoption (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 F61 O14 (search for similar items in EconPapers)
Pages: 29
Date: 2017-03-23
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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