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Firm participation in global value chains in francophone Africa: Can adoption of innovation make a difference?

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  • Tsambou, André Dumas
  • Diallo, Thierno Malick

Abstract

Despite the growing evidence on the importance of African countries' participation in global value chains (GVCs), relatively little is known about the role of innovation. This paper tends to fill this gap by examining the effects of innovation on firms' GVC participation in francophone Africa. We rely on survey data covering over 9535 firms in 18 countries. Using propensity score matching and instrumental variable methods, we find strong evidence that innovation is positively related to firms' GVC participation, with large variation across innovation and GVC measures. We also find that the innovation impact varies according to firm size, with significant effects for small firms.

Suggested Citation

  • Tsambou, André Dumas & Diallo, Thierno Malick, 2025. "Firm participation in global value chains in francophone Africa: Can adoption of innovation make a difference?," Sustainable Global Supply Chains Discussion Papers 11, Research Network Sustainable Global Supply Chains.
    • Handle: RePEc:zbw:sgscdp:327117
    DOI: 10.57671/sgscdp-2511
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    References listed on IDEAS

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    1. Ambos, Björn & Brandl, Kristin & Perri, Alessandra & Scalera, Vittoria G. & Van Assche, Ari, 2021. "The nature of innovation in global value chains," Journal of World Business, Elsevier, vol. 56(4).
    2. Avenyo, Elvis K. & Mensah Emmanuel B. & Ndubuisi Gideon & Sakyi, Daniel, 2022. "Participation a la Chaa®ne de Valeur Mondiale et Innovation : Preuves au Niveau des Entreprises de l'Afrique," Working Papers d485bec7-b335-4b9c-80f1-c, African Economic Research Consortium.
    3. João Amador & Sónia Cabral, 2016. "Global Value Chains: A Survey Of Drivers And Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 30(2), pages 278-301, April.
    4. Aboushady, Nora & Zaki, Chahir, 2023. "Are global value chains for sale? On business-state relations in the MENA region," IDOS Discussion Papers 17/2023, German Institute of Development and Sustainability (IDOS).
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    Keywords

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    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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