Drivers of productivity change in global value chains: Reallocation vs. innovation

Faculty/Professorship: International Economics  
Author(s): Mundt, Philipp  ; Savin, Ivan
Title of the Journal: Economics Letters
ISSN: 0165-1765
Publisher Information: Amsterdam [u.a.] : Elsevier
Year of publication: 2022
Volume: 220
Issue: November, 110878
Pages: 3
Language(s): English
DOI: 10.1016/j.econlet.2022.110878
We investigate the role of technological improvement and market share reallocation in determining global changes in sectoral labor productivity. Contrary to previous work that neglects dependencies between suppliers in global value chains, we account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input–Output Database, we show that reallocation between countries has a larger effect on productivity change than innovation within countries.
GND Keywords: Unternehmen; Internationalisierung; Technische Innovation; Wertschöpfungskette; Arbeitsproduktivität; Marktanteil; Input-Output-Analyse
Keywords: Input–output analysis, Market share reallocation, Productivity decomposition, Production network, Technological improvement
DDC Classification: 650 Management & public relations  
RVK Classification: QP 210   
Peer Reviewed: Ja
International Distribution: Ja
Type: Article
Release Date: 17. October 2022