Drivers of productivity change in global value chains: Reallocation vs. innovation

Philipp Mundt and Ivan Savin

No 179, BERG Working Paper Series from Bamberg University, Bamberg Economic Research Group

Abstract: We revisit the debate on the role of technological improvement and market share reallocation in determining aggregate productivity gains. Contrary to previous work that neglects dependencies between suppliers in global value chains, we explicitly account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input-Output Database, we show that market share reallocation has a markedly larger effect on productivity change than innovation.

Keywords: input-output analysis; market share reallocation; productivity decomposition; production network; technological improvement (search for similar items in EconPapers)
JEL-codes: C67 E24 L14 L16 O47 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-eff, nep-ino, nep-int and nep-tid
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Citations: View citations in EconPapers (3)

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Journal Article: Drivers of productivity change in global value chains: Reallocation vs. innovation (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bamber:179

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