Does Vertical Specialization Increase Productivity?
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 yea...
| Main Authors: | , , |
|---|---|
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/519951487600623263/Does-vertical-specialization-increase-productivity http://hdl.handle.net/10986/26145 |
| Summary: | 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. |
|---|