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Trade networks and the productivity of MENA firms in global value chains

Author

Listed:
  • Rym Ayadi

    (Sir John Cass Business School)

  • Giorgia Giovannetti

    (UniFI - Università degli Studi di Firenze = University of Florence = Université de Florence, EUI - European University Institute - Institut Universitaire Européen)

  • Enrico Marvasi

    (ROMA TRE - Università degli Studi Roma Tre = Roma Tre University)

  • Chahir Zaki

    (Economic Research Forum - Economic Research Forum, LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)

Abstract

Global Value Chain (GVC) participation is typically associated with a productivity premium, yet similar firms can benefit differently depending on the possibility for creating production linkages offered by their countries’ involvement in trade. We show that country-sector intermediate trade network centrality is also positively associated with firms’ productivity, suggesting that the connectivity of the business environment may enhance productivity on top of direct firm-level involvement in GVCs. For a large cross-section of MENA countries included in the World Bank Enterprise Surveys (WBES), we find evidence of productivity premia using several firm-level GVC participation measures and network centrality indicators constructed from the EORA input-output tables. Centrality is also positively associated with firms’ productivity, adding to the direct effect of GVC participation. Our results are confirmed using OLS, multi-level models, Propensity Score Matching techniques, and a Shift-Share instrumental variable approach which help addressing endogeneity issues.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Rym Ayadi & Giorgia Giovannetti & Enrico Marvasi & Chahir Zaki, 2024. "Trade networks and the productivity of MENA firms in global value chains," Post-Print hal-04798637, HAL.
    • Handle: RePEc:hal:journl:hal-04798637
    DOI: 10.1016/j.strueco.2023.11.014
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    Cited by:

    1. Eissa, Yasmine & Zaki, Chahir, 2025. "Leveraging global value chains for innovation: the case of SMEs," International Economics, Elsevier, vol. 182(C).
    2. Bouazizi, Youssef & Oulmakki, Ouail & Savard, Luc & Verny, Jérôme, 2025. "The decline of the wage share in value-added: What have we learned from North African firms?," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 150-162.
    3. Song, Huasheng & Ding, Dianer & Zhou, Jianjun, 2025. "Escaping the GVC trap: How does global value chain (GVC) participation impact the integration of the industrial and innovation chains?," Finance Research Letters, Elsevier, vol. 78(C).
    4. Wang, Xiaozhuo & Yang, Guang, 2025. "Does being embedded in RTA networks promote firm productivity? Evidence from Chinese firms," International Review of Economics & Finance, Elsevier, vol. 99(C).
    5. Tekilu Tadesse Choramo & Jemal Abafita & Yerali Gandica & Luis E C Rocha, 2024. "Economic Integration of Africa in the 21st Century: Complex Network and Panel Regression Analysis," Papers 2410.21019, arXiv.org.

    More about this item

    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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