ETSG conference: productivity gains from GVC

At the European Trade Study Group conference in Helsinki (September 8-10) Jan has presented his paper prepared in the GVC project: „Productivity Spillovers in the GVC The Case of Poland and the New EU Member States”.

The paper shows that there are important productivity spillovers within the global value chains, ie. FDI alone does not tell the whole story of the reallocation processes going on in the economies of the NMS. The paper uses the TFP spillover empirical model augmented with modern measures of GVC participation. We show that increased foreign content of exports brings additional productivity gains on top of the ones attributed to exporting. Moreover, we show that in selected cases, participation in the GVC leads to a smaller productivity gap between foreign and domestic firms. In Poland the productivity gains for domestic firms are located in production of intermediate goods with high foreign value content as well as in goods located close to the final demand. In many other NMS the benefits are concentrated close to the final demand.

ETSG is the largest annual international economics conference in Europe. This years’ edition had 7 paralell sessions over 3 days.