Global Value Chains Participation and Productivity Gains for North African Firms

This paper analyzes the participation of North African countries and firms into Global Value Chains (GVCs) and its implications for competitiveness. First it shows that North African countries are not (yet) fully integrated into international production networks, although large part of their (low) trade is due to value added related upstream activities, and the importance of global linkages has been increasing over time. Then, it empirically investigates if and how the performance of North African firms is affected by GVC participation. We fi nd that firms that have had access to international supply chains perform better, showing further productivity gains over time. The ability to get such improvements however relies on speci fic characteristics, such as an adequate level of quality and compliance with international standards, along with specialized skills. Policies designed to support the latter represent then an important tool for linking developing countries to global production and trade, with possible positive consequences on their economic development.