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Productivity Growth and Spillovers across European Industries: A Global Value Chain Perspective Based on EURO KLEMS

Author

Listed:
  • Liu, Weilin

    (Institute of Economic and Social Development, Nankai University)

  • Cheng, Qian

    (Institute of Economic and Social Development, Nankai University)

  • Sickles, Robin C.

    (Rice University,)

Abstract

The development of production networks has promoted knowledge flows and technology diffusion among industries over the past decades, which affects the productivity growth for most countries. This paper examines productivity growth in the presence of inter-sectoral linkages. We construct a spatial production model with technological spillovers and productivity growth heterogeneity at the industry-level. We use the global value chain (GVC) linkages from inter-country input-output tables to model the technological interdependence among industries, and estimate the total factor productivity (TFP) growth and spillover for the European countries. We find that the spillover effects from intermediate inputs is significant. There is a network effect of TFP growth from one country to another through input-output linkages. Our paper provides a better understanding of the impact of spillover effects on TFP growth in the context of GVCs.

Suggested Citation

  • Liu, Weilin & Cheng, Qian & Sickles, Robin C., 2022. "Productivity Growth and Spillovers across European Industries: A Global Value Chain Perspective Based on EURO KLEMS," Working Papers 22-001, Rice University, Department of Economics.
    • Handle: RePEc:ecl:riceco:22-001
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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