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Global Value Chains and the Productivity of Canadian Manufacturing Firms

Author

Listed:
  • Baldwin, John R.
  • Yan, Beiling

Abstract

The paper examines whether the integration of Canadian manufacturing firms into a global value chain (GVC) improves their productivity. To control for the self-selection effect (more productive firms self-select to join a GVC), propensity-score matching and difference-in-difference methods are used. Becoming part of a GVC can enhance firms' productivity, both immediately and over time. The magnitude and timing of the effects vary by industrial sector, internationalization process, and import source/export destination country in a way that suggests the most substantial advantages of GVC participation are derived from technological improvements.

Suggested Citation

  • Baldwin, John R. & Yan, Beiling, 2014. "Global Value Chains and the Productivity of Canadian Manufacturing Firms," Economic Analysis (EA) Research Paper Series 2014090e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp5e:2014090e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0027M2014090&ObjType=46&lang=en&limit=0
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    Citations

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    Cited by:

    1. Alexander Murray, 2017. "The Effect of Import Competition on Employment in Canada: Evidence from the 'China Shock'," CSLS Research Reports 2017-03, Centre for the Study of Living Standards.

    More about this item

    Keywords

    Economic accounts; Globalization and the labour market; Labour; Manufacturing; Productivity accounts;

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