scholarly journals The Impact of Global Value Chain Participation on Sectoral Growth and Productivity

2020 ◽  
Vol 12 (12) ◽  
pp. 4848
Author(s):  
Halit Yanikkaya ◽  
Abdullah Altun
Keyword(s):  
Productivity Growth ◽  
Value Chain ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Output Growth ◽  
Global Value Chain ◽  
Tfp Growth ◽  
Parameter Heterogeneity ◽  
The Impact

This study investigates the impact of participation in global value chains (GVCs) on sectoral value-added and total factor productivity growth (TFP) for two different time periods of 1995–2011 and 2005–2015. In addition to the commonly used participation indices, we also calculate lesser known measures of backward and forward participation indices, as suggested by the OECD. Our Generalized Method of Moments (GMM) estimations for the full sample indicate that sectors with higher GVC participation experience much higher output and TFP growth, especially for the period 1995–2011. Overall, our results imply that there have been decreasing gains from GVC participation in the later period. Note that our estimates for both output and TFP growth are very much similar. This means that participation in GVCs promotes not only output growth but also productivity growth across sectors. Considering the parameter heterogeneity, we repeat our estimations for manufacturing and services separately. Although for the earlier period both the manufacturing and services sectors benefit from more participation in terms of higher output and productivity growth, only the manufacturing sector experiences higher productivity growth from more participation for the period 2005–2015. Relatively less significant and smaller estimates for the later period covering the latest global crisis imply that participation in GVCs fails to bring satisfactory gains to countries and sectors.

scholarly journals The Impact of the COVID-19 Pandemic on China's Manufacturing Sector: A Global Value Chain Perspective

2021 ◽  
Vol 9 ◽  
Author(s):  
Yuegang Song ◽  
Xiazhen Hao ◽  
Yilin Hu ◽  
Zhou Lu
Keyword(s):  
Value Chain ◽  
Negative Impact ◽  
Manufacturing Sector ◽  
Third Sector ◽  
Value Added ◽  
Chinese Government ◽  
Global Value Chain ◽  
Electromechanical Equipment ◽  
Trade Analysis ◽  
The Impact

This paper, based on the notion of Trade in Value Added (TiVA), combines the global trade analysis project (GTAP) model with the value-added model in seeking to simulate and assess the impact of the COVID-19 pandemic on China's manufacturing sector in global value chain (GVC) reconfiguration. The empirical study provides three major results. First, at the macroeconomic level, the pandemic wreaks a negative impact on all the economies, including the U.S., in regard to import & export trade, GDP and social welfare policy. Second, nation-level simulation shows that there's a remarkable disparity across different pandemic scenarios in the level of division of labor and of GVC participation for China and its trade partners. Third, sector-level analysis shows that the impacts of the pandemic include promoting the level of GVC participation and of labor division in China's manufacturing sector (electromechanical equipment and computer goods). This paper also provides policy advice for Chinese government: participation in higher-end GVCs, introduction of further structural reforms and retention of foreign investors, and active responses to GVC reconfiguration and cross-border capital flow.

Global value chain linkages and domestic value-added content: Empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Value Chain ◽  
Least Squares Method ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Content Type ◽  
Services Sector ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015. Design/methodology/approach First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically. Findings First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income. Practical implications The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits. Originality/value This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.

scholarly journals The Impact of the COVID-19 Pandemic on the Global Value Chain of the Manufacturing Industry

2021 ◽  
Vol 13 (22) ◽  
pp. 12370
Author(s):  
Jiaze Sun ◽  
Huijuan Lee ◽  
Jun Yang
Keyword(s):  
Growth Rate ◽  
Value Chain ◽  
Manufacturing Industry ◽  
The United States ◽  
Output Growth ◽  
Added Value ◽  
High Tech ◽  
Global Value Chain ◽  
Epidemic Period ◽  
The Impact

This paper adopts the GDYN model to estimate the dynamic impact of the COVID-19 pandemic on global manufacturing industry and the value chain. Our simulation finds that (1) In the short run, the low-tech manufacturing industries will suffer greater shocks, with a decline of output growth in 2021 by 6.0%. The growth rate of the high-tech manufacturing industry showed an increasing trend of 3.7% in 2021. (2) In the post-epidemic period, the total manufacturing output will return to the baseline level, from which the growth rate of low-tech manufacturing will rebound, demonstrating a V-shaped development trajectory. (3) From the perspective of Global Value Chain (GVC), the participation in GVCs of manufacturers in countries along the Belt and Road, the European Union and the United States will weaken, while China’s manufacturing industry has witnessed an obvious improvement in export competitiveness. The import added value of China has decreased, which shows that its ability to meet domestic demand has been improving. This indicates that the COVID-19 pandemic is providing a crucial opportunity for China to upgrade its manufacturing value chain, which contributes to the accelerated construction of a new dual-cycle development pattern.

scholarly journals Credit volatility and productivity growth

Equilibrium ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 215-232
Author(s):  
Michał Brzozowski
Keyword(s):  
Productivity Growth ◽  
Negative Impact ◽  
Technological Development ◽  
Value Added ◽  
Banking Crises ◽  
Negative Influence ◽  
Financial Instability ◽  
Tfp Growth ◽  
Financial Depth ◽  
The Impact

Research background: The issues of finance-growth nexus and financial instability have attracted considerable attention, but have been studied in isolation. This paper aims at filling this gap by providing insights into the implications of financial instability for long term productivity growth. Purpose of the article: This paper sheds light on the relationship between credit-to-GDP ratio volatility and the total factor productivity (TFP) growth rate. The impact of systemic banking crises and financial depth on productivity growth is also studied. Methods: The System GMM estimation of panel data for over 100 countries and spanning the period of 1970–2009 is used. The decomposition of credit-to-GDP ratio into trend and cyclical component is performed using the Hodrick-Prescott filter and a regression analysis with country-specific intercepts and slopes. The data on TFP comes from the Penn World Tables database. Findings & Value added: TFP growth is negatively affected by credit volatility, mainly in less technologically advanced countries, while financial depth exerts a negative influence on TFP growth in economies with superior technology. Systemic banking crises and the concomitant credit crunches have a negative impact on productivity growth, regardless of the level of technological development. Moreover, the level of human capital, patents and globalization fuel productivity growth. Macroeconomic instability, measured by the rate of inflation, hampers TFP growth.

scholarly journals A SAM-Based Analysis of the Economic Impact of Frauds in the Italian Wine Value Chain

2021 ◽  
Author(s):  
Donato Romano ◽  
Benedetto Rocchi ◽  
Ahmad Sadiddin ◽  
Gianluca Stefani ◽  
Raffaella Zucaro ◽  
...  
Keyword(s):  
Value Chain ◽  
Food System ◽  
Value Added ◽  
Activity Level ◽  
Wine Industry ◽  
Full Time ◽  
Italian Economy ◽  
Wine Production ◽  
Italian Wine ◽  
The Impact

AbstractThe objective of this paper is twofold: firstly, it analyzes the evolution of frauds in the Italian wine value chain over the period 2007–2015, and then, using a properly disaggregated social accounting matrix (SAM) of the Italian economy, it simulates the impact of wine frauds on the national economy in terms of growth, employment, value added and income. The wine industry is the sector most exposed to frauds within the Italian agro-food system accounting for 88% of total value of seized agro-food outputs. Most irregularities (95%) are made by only three agents, specifically individual wineries, bottlers-wholesalers and retailers. We estimated industry-specific SAM multipliers to assess the share of the Italian economy depending on irregular wine production. These activities account for 11.5% of specialized permanent crop farms output and over 25% of wine industry output. This is a sign of vulnerability of the wine industry: should a food scandal/scare determine a drop in consumers’ demand, the negative effect on production activities of these sectors may be large. The SAM was also used to perform an impact analysis adopting a counterfactual approach. Results show a slightly positive increase of value added (6 million euro) along with an overall decrease in the activity level (an output loss of 406 million euro and more than six thousand full time jobs lost). This contractionary effect can be explained with fraud rents. Indeed, the extra-profits from frauds do not activate the economy circular flow as most of them leak out to exogenous accounts such as the public administration and the rest of the world.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

scholarly journals Analisis Dampak Hilirisasi Industri Kakao di Indonesia

2020 ◽  
Vol 12 (1) ◽  
pp. 99-108
Author(s):  
Sebastian Hadinata ◽  
Maria Merry Marianti
Keyword(s):  
National Economy ◽  
Value Chain ◽  
Positive Impact ◽  
Value Added ◽  
Raw Material ◽  
Literature Study ◽  
Processing Industry ◽  
Industrial Structures ◽  
Business Opportunities ◽  
The Impact

Cocoa is one of Indonesia’s plantation commodity that is important for the national economy. Cocoa plays a role in encouraging regional development and agro-industry. The purpose of this study was to find out the cocoa value chain in Indonesia and find out the impact of the downstream cocoa processing industry in Indonesia. The method used is literature study. The results of the analysis show that the downstreaming of the cocoa processing industry has a positive impact on Indonesia, the benefits of which are getting value added of raw material products, strengthening industrial structures, providing employment, attracting investors, and providing business opportunities in Indonesia.

Services Outsourcing and Productivity Growth

2018 ◽  
Vol 19 (2) ◽  
pp. 192-209 ◽  
Author(s):  
Sonia Mukherjee
Keyword(s):  
Productivity Growth ◽  
Manufacturing Sector ◽  
Core Competencies ◽  
Marketing Research ◽  
Manufacturing Firms ◽  
Professional Services ◽  
Business Services ◽  
Positive Role ◽  
Firm Level ◽  
The Impact

The article studies the impact of outsourcing services on the productivity growth of the Indian manufacturing firms. By the term services we mean different expenses on services incurred by the manufacturing firms, such as, advertising, marketing, research and development, consultancy, auditing, business services, knowledge-based services, technical, legal and other professional services (including information communication and technology services). With further expansion in newer services, a higher demand has come from the Indian manufacturing sector. With intensive usage of services in the manufacturing production process, the performance and the manufacturing can focus on the core competencies with outsourced and cheaper services from expert service provider. For this purpose, the firm-level data have been collected from the annual financial statements of the Centre for Monitoring of the Indian Economy’s Prowess database. The econometric results conclude that services have played a positive role in improving the productivity growth of the aggregate Indian manufacturing firms and at the disaggregated level, especially for industrial groups such as food, beverage and tobacco; textiles, gems and jewellery; transport; machinery; metal, rubber and plastic; leather and footwear; and chemicals, services have played a favourable role in boosting the productivity growth. JEL: D24, L80, L60

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