Accounting for firm heterogeneity in global value chains
Bibliographic Data
| ID | 21409932 |
|---|---|
| Authors | Fabienne Fortanier (De Nederlandsche Bank, corresponding author), Guannan Miao (Organisation de Coopération et de Développement Economiques), Ans Kolk (0000-0001-5345-2965, University of Amsterdam), Niccolò Pisani (0000-0002-5304-3472, University of Amsterdam) |
| Year | 2020 |
| Volume | 51 |
| Issue | 3 |
| Pages | 432-453 |
| Publication date | 2020-04-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of International Business Studies (JOURNAL) |
| Journal identifiers | ISSN: 0047-2506 • E-ISSN: 1478-6990 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1057/s41267-019-00282-0 |
| OpenAlex | W2995557854 |
| Language | EN |
| Citations received | 5 |
| References cited | 38 |
The growing interest in global value chains (GVCs) has been paired with a greater appreciation of the need for better measurement methods, as reflected by recent initiatives from academia and leading international organizations. This research note focuses on one method to measure GVCs that has been recommended in recent scholarly work, namely input–output models, but goes beyond the industry level of analysis by introducing intra-industry firm heterogeneity. Our illustrative application to multinational enterprises (MNEs) versus domestic firms’ participation in GVCs enhances our understanding of their specific role in GVCs and how such engagement varies across countries and industries. While showing that MNEs’ contribution to value-added exports is considerably smaller than what is suggested by traditional trade statistics, our findings also, interestingly, document that the higher import content of exports of MNEs can go hand in hand with the creation of local backward linkages as a function of their much higher specialization in only parts of the production process vis-à-vis domestic firms. By answering relevant questions on MNEs’ engagement in GVCs that have hitherto been impossible to address comprehensibly and in a cross-country comparative setting, this application illustrates how the methodology has great potential for international business research
Business · Economic geography · Economics · Function (biology) · Industrial organization · International business · International trade · Management · Multinational corporation · Value (mathematics) · Global trade and economics · Global trade, sustainability, and social impact · International Business and FDI
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Regional entrepreneurial spirit and global value chains participation in Chinese cities
FDI and industrial development in a mega-city region
Uncovering missing links in global value chain research – and implications for corporate social responsibility and international business
A Survey of Papers Using Indonesian Firm-Level Data
Input-Output Analysis
The nature and growth of vertical specialization in world trade
Estimating vertical spillovers from FDI
Domestic Value Added in Exports
The Wage Effects of Offshoring
Tracing Value-Added and Double Counting in Gross Exports
An Illustrated User Guide to the World Input–Output Database
Accounting for intermediates
Location, control and innovation in knowledge-intensive industries
Structure and evolution of global cluster networks
Does FDI Cause Development? The Ambiguity of the Evidence and Why it Matters
Estimating domestic content in exports when processing trade is pervasive
Firms in International Trade
| Citations per year | 0.83 |
|---|---|
| Citation span | 2020 - 2025 (6) |
| Highly cited | No |