Does vertical specialization increase productivity ?

Ileana Cristina Constantinescu, Aaditya Mattoo, Michele Ruta, Ileana Cristina Constantinescu, Aaditya Mattoo and Michele Ruta
Authors registered in the RePEc Author Service: Aaditya Mattoo and Michele Ruta

No 7978, Policy Research Working Paper Series from The World Bank

Abstract: This paper investigates the impact of global value chain participation on productivity, using data on trade in value added from the World Input-Output Database. The results based on a panel estimation covering 13 sectors in 40 countries over 15 years suggest that participation in global value chains is a significant driver of labor productivity. Backward participation in global value chains, that is, the use of imported inputs to produce for exports, emerges as particularly important. An increase by 10 percent in the level of global value chain participation increased average productivity by close to 1.7 percent.

Keywords: International Trade and Trade Rules; Labor Markets; Food&Beverage Industry; Plastics&Rubber Industry; Business Cycles and Stabilization Policies; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Common Carriers Industry; Construction Industry; General Manufacturing; Transport and Trade Logistics; Industrial and Consumer Services and Products (search for similar items in EconPapers)
Date: 2017-02-20
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Does vertical specialisation increase productivity? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7978

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