Firm Productivity, Organizational Choice and Global Value Chain

Preprint OPEN
Anna Giunta ; Domenico Scalera ; Francesco Trivieri ; Jeffrey B. Nugent ; Mariarosaria Agostino (2011)

Based upon insights of the global value chain literature, the aim of this paper is to investigate the impact of being a supplier firm on labour productivity. The country of analysis is Italy, historically characterized by a very strong division of labour among firms. We make use of a unique database, which collects information on several organizational, structural and performance variables of a representative sample of more than 3000 Italian manufacturing firms, spanning the period 1998-2006. Our econometric investigation confirms predictions coming from the global value chain literature. By and large, our findings indicate that being a traditional supplier is associated with lower levels of productivity in comparison with the ones exhibit by final firms. However, supplier firms that both export a significant percentage of their production and carry out product or process innovations (i.e. the subset of suppliers that we name advanced suppliers against traditional suppliers) display productivity levels not lower (and, actually, higher) than final firms ones.
  • References (18)
    18 references, page 1 of 2

    Accetturo A., Giunta A. and Rossi S. (2011), Le imprese italiane tra crisi e nuova globalizzazione, L'Industria, 1, 145-164.

    Amighini A. and Rabellotti R. (2003), The effect of globalisation on industrial districts in Italy: evidence from the footwear sector, Working Paper 64, SEMEQ Department, University of Eastern Piedmont.

    Ackerberg D.A., Caves K. and Frazer G. (2005), Structural identification of production functions, mimeo.

    Agostino M., Giunta A., Nugent J.B., Scalera D. and Trivieri F. (2010), L'impresa manifatturiera subfornitrice italiana nella catena del valore globale. Un confronto di produttività (1998-2006), in Zazzaro A. (ed.)Reti di imprese e territorio: tra vincoli e nuove opportunità dopo la crisi, Bologna, Il Mulino.

    Antras P. andHelpman E. (2004), Global sourcing, Journal of Political Economy, 112, 552-580.

    Arndt S. and Kierzkowski H. (eds) (2001), Fragmentation: New Production Patterns in the World Economy, Oxford, Oxford University Press.

    Arellano M. and Bond S. (1991), Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, Review of Economic Studies, 58, 277-297.

    Bair J. and Gereffi G. (2001), Local clusters in global chains: the causes and consequences of export dynamism in Torreon's blue jeans industry, World Development, 29, 1885-1903.

    Baldwin R. and Gu W. (2004), Trade liberalization: export market participation, productivity growth and innovation, Oxford Review of Economic Policy, 20, 372-392.

    Bazan L. and Navas-Aleman L. (2004), The underground revolution in the Sinos Valley: a comparison of upgrading in global and national value-chains, in Schmitz H. (ed.), Local Enterprises in the Global Economy: Issues of Governance and Upgrading. Cheltenham, Edward Elgar.

  • Metrics
    No metrics available
Share - Bookmark