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International linkages, value-added trade, and firm productivity in Latin America and the Caribbean

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posted on 2023-06-21, 06:02 authored by Pierluigi Montalbano, Silvia Nenci, Carlo Pietrobelli
This chapter addresses the following research questions: (i) Are firms characterized by international linkages more productive than other firms? (ii) Are those belonging to industries more involved in GVCs even more productive? To this end, we combine the World Bank Enterprise Survey dataset with the new OECD-WTO TiVA dataset and present three main empirical exercises: (1) an analysis of productivity premia associated with participation in international trade and presence of inward FDI; (2) a Cobb–Douglas output function expanded to firms’ international linkages; (3) a further expanded version of the above relationship including the TiVA-based indicators of value added trade and industry participation and position in the global value chain. Our empirical outcomes confirm the presence of a positive causal relationship between participation in international activities and firm performance in the LAC region. Focusing on four big Latin American countries we show that the actual level of involvement into GVCs matters as well.

History

Publication status

  • Published

File Version

  • Published version

Publisher

Palgrave Macmillan

Page range

285-316

Pages

346.0

Book title

Firm innovation and productivity in Latin America and the Caribbean: the engine of economic development

Place of publication

New York

ISBN

9781349581511

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Editors

Matteo Grazzi, Carlo Pietrobelli, Development Bank American

Legacy Posted Date

2017-03-15

First Open Access (FOA) Date

2017-03-15

First Compliant Deposit (FCD) Date

2017-03-15

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