Domestic Foundations of Global Value Chains

SEMINAR

3 marzo 2016
Versione stampabile

2 PM, Room 3E, Department of Economics and Management

Speaker: Cosimo Beverelli, World Trade Organization

 

Abstract

We analyze the relationship between domestic value chains (DVCs) and global value chains
(GVCs). Strong domestic linkages across firms cause productivity gains through gains from
specialization. This increase in productivity, in turn, should make industries more competitive and facilitate the entry of firms into GVCs. Therefore, GVCs should have domestic foundations in DVCs. We provide evidence in favour of this hypothesis: DVC integration positively affects GVC integration. The results hold in particular for backward linkages,namely, when intermediates sourced from abroad are used as proxy for GVC integration.

Keywords: Domestic value chains; global value chains; input-output linkages.
JEL Classification: F14; F15; F63.