Formai, S. and Caffarelli, F.
Quantifying the productivity effects of global value chains
WP Number: 1521
Abstract: This work analyses the relationship between international fragmentation of production and productivity growth. To identify the impact of fragmentation on productivity growth,we employ the methodology proposed in a different context by Rajan and Zingales (1996). In particular we interact the length and the width of sectoral production chains with a measure of countries' involvement in international fragmentation of production. We find evidence indicating that off-shoring increases labour productivity and total factor productivity in the externalising country.
PDF: wp1521.pdf 
Open Access Link: 10.17863/CAM.5779