Productivity spillovers in the GVC. The case of Poland and the New EU Member States
No 2015-42, Working Papers from Faculty of Economic Sciences, University of Warsaw
The new EU member states have been experiencing firm internationalization not only through inward foreign direct investment but also through exporting, importation of foreign technology in investment goods and increased use of imported intermediates. We argue that there are important productivity spillovers within the global value chains, i.e. FDI alone does not tell the whole story of the reallocation processes going on in the economies of the NMS. We augment the standard TFP spillover empirical model with modern measures of GVC participation. We show that increased foreign content of exports brings additional productivity gains on top of the ones attributed to exporting. Moreover, we show that in selected cases, participation in the GVC leads to a smaller productivity gap between foreign and domestic firms.
Keywords: global value chains; productivity; New Member States; productivity spillovers (search for similar items in EconPapers)
JEL-codes: L25 C67 F10 F23 O12 (search for similar items in EconPapers)
Pages: 28 pages
New Economics Papers: this item is included in nep-cse, nep-eec, nep-eff, nep-int, nep-sbm and nep-tra
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http://www.wne.uw.edu.pl/index.php/download_file/2289/ First version, 2015 (application/pdf)
Working Paper: Productivity spillovers in the GVC: The case of Poland and the New EU Member States (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2015-42
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