IDEAS home Printed from https://ideas.repec.org/p/gii/cteiwp/ctei-2017-01.html

A Portrait of Firms Participating in Global Value Chains

Author

Abstract

This paper presents new stylized facts on developing-nation firms that both import and export, drawing on data from the World Bank's Enterprise Surveys. Using a sample of 124 developing nations, I show that such two-way trading firms, a proxy for global value chains (GVC) participation, are more likely to run training programs, use foreign-licensed technology, possess quality certifications, and communicate with customers and suppliers via the internet. Using the same sample, I also show that local suppliers, i.e. non-trading domestic firms, are more likely to engage in internet-based communication, and hold quality certificates and licences to foreign technology for stronger downstream input-output linkages with two-way trading firms. Overall, these results suggest that the fragmentation of production processes, both internationally and domestically, have significantly affected firms' characteristics in developing and emerging economies.

Suggested Citation

  • Davide Rigo, 2017. "A Portrait of Firms Participating in Global Value Chains," CTEI Working Papers series 01-2017, Centre for Trade and Economic Integration, The Graduate Institute.
    • Handle: RePEc:gii:cteiwp:ctei-2017-01
    as

    Download full text from publisher

    File URL: http://graduateinstitute.ch/files/live/sites/iheid/files/sites/ctei/shared/CTEI/working_papers/CTEI-2017-01-Rigo-GVC&Firms.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christ, Nannette & Ferrantino, Michael J., 2011. "Land Transport for Export: The Effects of Cost, Time, and Uncertainty in Sub-Saharan Africa," World Development, Elsevier, vol. 39(10), pages 1749-1759.
    2. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    3. Blalock, Garrick & Gertler, Paul J., 2008. "Welfare gains from Foreign Direct Investment through technology transfer to local suppliers," Journal of International Economics, Elsevier, vol. 74(2), pages 402-421, March.
    4. Ilke Van Beveren & Hylke Vandenbussche, 2010. "Product and process innovation and firms' decision to export," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 3-24.
    5. David J. Teece, 2008. "Technology Transfer By Multinational Firms: The Resource Cost Of Transferring Technological Know-How," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 1, pages 1-22, World Scientific Publishing Co. Pte. Ltd..
    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    7. Paula Bustos, 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms," American Economic Review, American Economic Association, vol. 101(1), pages 304-340, February.
    8. Victor Kummritz, 2016. "Do Global Value Chains Cause Industrial Development?," CTEI Working Papers series 01-2016, Centre for Trade and Economic Integration, The Graduate Institute.
    9. Murat Şeker, 2012. "Importing, Exporting, and Innovation in Developing Countries," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 299-314, May.
    10. Jože P. Damijan & Črt Kostevc & Sašo Polanec, 2010. "From Innovation to Exporting or Vice Versa?," The World Economy, Wiley Blackwell, vol. 33(3), pages 374-398, March.
    11. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    12. Bruno Cassiman & Elena Golovko, 2011. "Innovation and internationalization through exports," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 56-75, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).
    2. Massimiliano Bratti & Giulia Felice, 2012. "Are Exporters More Likely to Introduce Product Innovations?," The World Economy, Wiley Blackwell, vol. 35(11), pages 1559-1598, November.
    3. Alfonso Exposito & Juan A. Sanchis-Llopis, 2020. "The effects of innovation on the decisions of exporting and/or importing in SMEs: empirical evidence in the case of Spain," Small Business Economics, Springer, vol. 55(3), pages 813-829, October.
    4. Victor Stolzenburg & Daria Taglioni & Deborah Winkler, 2019. "Economic upgrading through global value chain participation: which policies increase the value-added gains?," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 30, pages 483-505, Edward Elgar Publishing.
    5. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    6. L. Benfratello & A. Bottasso & C. Piccardo, 2022. "R&D and export performance: exploring heterogeneity along the export intensity distribution," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 189-232, June.
    7. Maria Luisa Mancusi & Andrea Vezzulli & Serena Frazzoni & Zeno Rotondi & Maurizio Sobrero, 2018. "Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing," Economica, London School of Economics and Political Science, vol. 85(337), pages 177-204, January.
    8. repec:osf:osfxxx:ugkr6_v1 is not listed on IDEAS
    9. David Aristei & Davide Castellani & Chiara Franco, 2013. "Firms’ exporting and importing activities: is there a two-way relationship?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 55-84, March.
    10. Fang Wang & Zhaoyuan Xu & Xiaoyong Dai, 2023. "Is learning by exporting technology specific? Evidence from Chinese firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(2), pages 275-304, February.
    11. Stephen Esaku, 2020. "Investments, export entry and export intensity in small manufacturing firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(4), pages 677-697, December.
    12. Keller, Wolfgang, 2010. "International Trade, Foreign Direct Investment, and Technology Spillovers," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 793-829, Elsevier.
    13. Luosha Du & Ann Harrison & Gary Jefferson, 2022. "FDI Spillovers and Industrial Policy: The Role of Tariffs and Tax Holidays," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 9, pages 215-232, World Scientific Publishing Co. Pte. Ltd..
    14. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2022. "Deep Integration, Global Firms, and Technology Spillovers," Advances in Japanese Business and Economics, Springer, number 978-981-16-5210-3, April.
    15. Kaz Miyagiwa & Aminata Sissoko, 2013. "The free-rider problem and the optimal duration of research joint ventures: theory and evidence from the Eureka program," Working Papers 1302, Florida International University, Department of Economics.
    16. Satō, Hitoshi., 2014. "How can ASEAN and Japan mutually benefit from ASEAN economic integration?," ILO Working Papers 994863883402676, International Labour Organization.
    17. Merlevede, Bruno & Schoors, Koen & Spatareanu, Mariana, 2014. "FDI Spillovers and Time since Foreign Entry," World Development, Elsevier, vol. 56(C), pages 108-126.
    18. Tomasz Brodzicki & Dorota Ciolek, 2016. "Creativity pays off. Innovation, innovation strategy, and internationalization," Working Papers 1601, Instytut Rozwoju, Institute for Development.
    19. Merlevede, Bruno & Schoors, Koen & Spatareanu, Mariana, 2014. "FDI Spillovers and Time since Foreign Entry," World Development, Elsevier, vol. 56(C), pages 108-126.
    20. Bruno Merlevede & Koen Schoors & Mariana Spatareanu, 2010. "Knowledge Spillovers and the Timing of Foreign Entry," Working Papers Rutgers University, Newark 2010-001, Department of Economics, Rutgers University, Newark.
    21. Bruno Merlevede & Victoria Purice, 2014. "Distance, Time since Foreign Entry, and Knowledge Spillovers from Foreign Direct Investment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/896, Ghent University, Faculty of Economics and Business Administration.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gii:cteiwp:ctei-2017-01. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Kummritz (email available below). General contact details of provider: https://edirc.repec.org/data/ctheich.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.