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

Faculty/Professorship: International Economics  
Author(s): Savin, Ivan; Mundt, Philipp  
Publisher Information: Bamberg : Otto-Friedrich-Universität
Year of publication: 2022
Pages: 3
Source/Other editions: Economics Letters, 220 (2022), 3 S. - ISSN: 0165-1765
is version of: 10.1016/j.econlet.2022.110878
Year of first publication: 2022
Language(s): English
Licence: Creative Commons - CC BY - Attribution 4.0 International 
URN: urn:nbn:de:bvb:473-irb-561219
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   
Type: Article
Release Date: 12. January 2023

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