Global Value Chain Integration and Productivity : Evidence from Enterprise Surveys in Namibia, South Africa, and Swaziland
In order to adequately measure a firm’s participation in GVCs in this context, it is important to first identify the different forms through which GVC integration can affect domestic firms’ productivity. Integrating a country’s domestic suppliers i...
| Main Authors: | , |
|---|---|
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/01/25840693/global-value-chain-integration-productivity-evidence-enterprise-surveys-namibia-south-africa-swaziland http://hdl.handle.net/10986/23818 |
| Summary: | In order to adequately measure a firm’s
participation in GVCs in this context, it is important to
first identify the different forms through which GVC
integration can affect domestic firms’ productivity.
Integrating a country’s domestic suppliers into GVCs
increases the possibility for productivity gains through
exporting to a buyer abroad or supplying to a multinational
in the country. But countries should not neglect the
opportunities for productivity gains that GVC participation
can provide from a buyer’s perspective. Instead of building
a complete array of supply chains at home, firms can join
existing supply chains of multinationals through
cross-border trade in intermediates and components (Taglioni
and Winkler 2015). While Farole and Winkler (2014) focus on
the productivity spillovers from multinationals in a
country, this note looks at the impact of cross-border sales
to international buyers (exporting) or purchases of inputs
from international sellers (importing) in GVCs. This note is
structured as follows. Section two reviews the relevant
literature with regard to productivity effects from GVC
participation as well as the role of domestic firm
characteristics in this context. Section three introduces
the data and econometric model. In section four the author
presents our regression results, while section five concludes. |
|---|