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Global Value Chains Participation and Productivity Gains for North African Firms

Author

Listed:
  • Davide Del Prete

    (IMT Lucca)

  • Giorgia Giovannetti

    () (University of Firenze)

  • Enrico Marvasi

    (Politecnico di Milano)

Abstract

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.

Suggested Citation

  • Davide Del Prete & Giorgia Giovannetti & Enrico Marvasi, 2016. "Global Value Chains Participation and Productivity Gains for North African Firms," Development Working Papers 407, Centro Studi Luca d'Agliano, University of Milano, revised 14 Nov 2016.
  • Handle: RePEc:csl:devewp:407
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    Cited by:

    1. Jean Balié & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 4/17, Sapienza University of Rome, DISS.
    2. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    3. Del Prete, Davide & Ghins, Léopold & Magrini, Emiliano & Pauw, Karl, 2019. "Land consolidation, specialization and household diets: Evidence from Rwanda," Food Policy, Elsevier, vol. 83(C), pages 139-149.
    4. Freddy Cepeda-Lopez & Fredy Gamboa-Estrada & Carlos León & Hernán Rincón-Castro, 2019. "Colombian liberalization and integration to world trade markets: Much ado about nothing," Borradores de Economia 1065, Banco de la Republica de Colombia.
    5. Jin Chen & Chengyuan Wang & Qiong Wang & Biao Luo, 2019. "Sibling Rivalry vs. Brothers in Arms: The Contingency Effects of Involvement of Multiple Offsprings on Risk Taking in Family Firms," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-16, August.
    6. Marion Dovis & Chahir Zaki, 2020. "Global Value Chains and Local Business Environments: Which Factors Really Matter in Developing Countries?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 481-513, September.
    7. Mariarosaria Agostino & Emanuele Brancati & Anna Giunta & Domenico Scalera & Francesco Trivieri, 2020. "Firms' efficiency and global value chains: An empirical investigation on Italian industry," The World Economy, Wiley Blackwell, vol. 43(4), pages 1000-1033, April.
    8. Kenichi Kashiwagi & Erina Iwasaki, 2020. "Effect of agglomeration on technical efficiency of small and medium‐sized garment firms in Egypt," African Development Review, African Development Bank, vol. 32(1), pages 14-26, March.
    9. Stefan Pahl & Marcel P. Timmer, 2019. "Patterns of vertical specialisation in trade: long-run evidence for 91 countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 459-486, August.
    10. David Cook & Nikhil Patel, 2018. "Dollar invoicing, exchange rates and international trade," BIS Papers chapters, in: Bank for International Settlements (ed.),The price, real and financial effects of exchange rates, volume 96, pages 108-121, Bank for International Settlements.
    11. Anthony Black & Lawrence Edwards & Faizel Ismail & Brian Makundi & Mike Morris, 2019. "Spreading the gains?: Prospects and policies for the development of regional value chains in Southern Africa," WIDER Working Paper Series wp-2019-48, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    global value chains; firm heterogeneity; North Africa; productivity;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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