Does vertical specialisation increase productivity?

descriptionPublicationkeyboard_double_arrow_right Article , Book , Other literature type , Research , Report 01 Feb 2017 United States English Publisher:WileyJournal:The World Economy, volume 42, pages 2,385-2,402 (issn: 0378-5920, eissn: 1467-9701,

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Authors: Cristina Constantinescu; Aaditya Mattoo; Michele Ruta;

doi: 10.1111/twec.12801 , 10.1596/1813-9450-7978

handle: 10986/26145

Does vertical specialisation increase productivity?

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Abstract

AbstractThis paper investigates the impact of global value chain (GVC) participation on productivity. It uses 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 GVCs is a significant driver of labour productivity. Backward participation in GVCs, that is, the use of imported inputs to produce for exports, emerges as particularly important. An increase by 10% in the level of GVC participation increased average productivity by close to 1.6%.

Country

United States

Related Organizations

World Bank
United States
Columbia University
United States
International Monetary Fund
United States

Keywords

330, labor productivity, vertical specialization, global value chains, globalization

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