Opening and linking up: firms, GVCs, and productivity in Latin America

Montalbano, Pierluigi, Nenci, Silvia and Pietrobelli, Carlo (2017) Opening and linking up: firms, GVCs, and productivity in Latin America. Small Business Economics. pp. 1-19. ISSN 1573-0913

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Abstract

This work explores the relationship between exports, global value chains (GVCs)’ participation and position, and firms’ productivity. To this aim, we combine the most recent World Bank Enterprise Survey in Latin American and Caribbean (LAC) countries with the Organisation for Economic Co-operation and Development and World Trade Organization trade in value-added data. To explore the above relationship, we adopt an extended version of the standard Cobb- Douglas output function including indicators of export performance and GVCs. We control for heterogeneity among firms (by country, region, and industry), sample selection, firms’ characteristics, and reverse causality. Our empirical outcomes confirm the presence of a positive relationship between participation in international activities and firm performance. They also show that both participation in GVCs and position within GVCs matter. These findings have strong policy implications and may help policymakers in choosing the best policy options to enhance the link between GVCs’ integration and firms’ productivity.

Item Type: Article
Keywords: Firm productivity Exports Trade in value added Global value chains Learning by supplying
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HF Commerce > HF1414.4 Exports
Depositing User: Prof. Pierluigi Montalbano
Date Deposited: 16 Oct 2017 12:46
Last Modified: 25 Oct 2017 08:55
URI: http://sro.sussex.ac.uk/id/eprint/70536

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