International Linkages, Value Added Trade and LAC Firms' Productivity
Pierluigi Montalbano (),
Silvia Nenci () and
No 198, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre
This paper addresses the following research questions: i) are firms characterized by international linkages more productive than other firms? ii) are those belonging to industries more involved in GVCs even more productive? To this end, we combine the WB Enterprise Survey dataset with the new OECD-WTO TiVA dataset and present three main empirical exercises: 1) an analysis of productivity premia associated with participation in international trade and presence of inward FDI; 2) a Cobb-Douglas output function expanded to firms international linkages; 3) a further expanded version of the above relationship including the TIVA-based indicators of value added trade and industry participation and position in global value chain. Our empirical outcomes confirm the presence of a positive causal relationship between participation in international activities and firm performance in the LAC region. Focusing on four big Latin American countries we show that the actual level of involvement into GVCs matters as well.
Keywords: International Trade; Trade in Value a dded; Global value chains; Firm productivity. (search for similar items in EconPapers)
JEL-codes: D24 F14 F61 L22 O54 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff and nep-int
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