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Trade networks and the productivity of MENA firms in global value chains.
- Source :
-
Structural Change & Economic Dynamics . Jun2024, Vol. 69, p10-23. 14p. - Publication Year :
- 2024
-
Abstract
- • We investigate how GVC participation and centrality in the intermediate trade network are associated with firms' productivity in the MENA countries. • Using several measures of GVCs, we show that firms in GVCs are more productive. • Multi-level estimations show that country-sector intermediate trade network centrality is also positively associated with firms' productivity. • Results are confirmed using propensity score matching and shift-share instrumental variable approach. Global Value Chain (GVC) participation is typically associated with a productivity premium, yet similar firms can benefit differently depending on the possibility for creating production linkages offered by their countries' involvement in trade. We show that country-sector intermediate trade network centrality is also positively associated with firms' productivity, suggesting that the connectivity of the business environment may enhance productivity on top of direct firm-level involvement in GVCs. For a large cross-section of MENA countries included in the World Bank Enterprise Surveys (WBES), we find evidence of productivity premia using several firm-level GVC participation measures and network centrality indicators constructed from the EORA input-output tables. Centrality is also positively associated with firms' productivity, adding to the direct effect of GVC participation. Our results are confirmed using OLS, multi-level models, Propensity Score Matching techniques, and a Shift-Share instrumental variable approach which help addressing endogeneity issues. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0954349X
- Volume :
- 69
- Database :
- Academic Search Index
- Journal :
- Structural Change & Economic Dynamics
- Publication Type :
- Academic Journal
- Accession number :
- 177352373
- Full Text :
- https://doi.org/10.1016/j.strueco.2023.11.014