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Jobs and Productivity Growth in Global Value Chains: New Evidence for Twenty-five Low- and Middle-Income Countries

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  • Stefan Pahl
  • Marcel P Timmer
  • Reitze Gouma
  • Pieter J Woltjer

Abstract

Using newly developed data, the evolution of job and productivity growth in global value chains (GVCs) is analyzed for 25 low- and middle-income countries. GVC jobs are found to be more productive than non-GVC jobs. Their share in the total labor force is small, in particular for low-income countries. Growth in GVC jobs varies widely across countries in the period 2000–2014. Part of this can be accounted for by differences in the type of consumer market served. A bigger part is accounted for by the speed with which countries expand activities within supply chains, measured by their shares in GVC value added. Expansion in GVCs is positively correlated with labor productivity across countries as well as over time within GVCs.

Suggested Citation

  • Stefan Pahl & Marcel P Timmer & Reitze Gouma & Pieter J Woltjer, 2022. "Jobs and Productivity Growth in Global Value Chains: New Evidence for Twenty-five Low- and Middle-Income Countries," The World Bank Economic Review, World Bank, vol. 36(3), pages 670-686.
    • Handle: RePEc:oup:wbecrv:v:36:y:2022:i:3:p:670-686.
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    Cited by:

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    2. Hammoudeh, Shawkat & Tiwari, Aviral Kumar & Abakah, Emmanuel Joel Aikins & Adeabah, David, 2023. "Global value chains in sub-Saharan Africa: The role of business regulations, policies and institutions," Emerging Markets Review, Elsevier, vol. 57(C).
    3. Eric Mokwaro Bosire, 2023. "Viewpoints in Global Value Chains: Evidence from Sub-Saharan Africa," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 13-28, January.
    4. Sèna Kimm Gnangnon, 2023. "Trade-Related Government Expenditure and Developing Countries’ Participation in Global Value Chains," Commodities, MDPI, vol. 3(1), pages 1-18, December.
    5. Pan, Xiongfeng & Yuan, Jiahong, 2024. "Global Value Chain, GVC、biased technological change and reginal total factor productivity differences," Technological Forecasting and Social Change, Elsevier, vol. 206(C).

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