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Firm innovation and global value chain participation

Author

Listed:
  • Ketan Reddy

    (Indian Institute of Technology Madras)

  • Radeef Chundakkadan

    (Indian Institute of Technology Bhilai)

  • Subash Sasidharan

    (Indian Institute of Technology Madras)

Abstract

The objective of this paper is to examine the relationship between innovation and firms’ participation in global value chains (GVCs). To achieve this objective, we use rich firm-level data from the World Bank Enterprise Survey (WBES), spanning the period of 2006–2017, belonging to 90 countries. Accounting for endogeneity arising from reverse causality, our study finds firm innovation to be a driver of firm GVC participation across countries. These findings are robust to alternative measures of innovation and various sub-sample analysis.

Suggested Citation

  • Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:4:d:10.1007_s11187-020-00391-3
    DOI: 10.1007/s11187-020-00391-3
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