Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238499 
Year of Publication: 
2020
Series/Report no.: 
ADBI Working Paper Series No. 1142
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper examines the effects of human capital on SMEs' participation in global value chains using Indonesian firm-level data. The paper adopts the discrete choice modeling of the probit framework to examine the behavior of firms in the export market. In particular, it examines SME behavior in the export market using firm-level data from the Indonesian Annual Manufacturing Survey in 1996 and 2006. The results indicate that SMEs' size, ownership structure, and financing capability drive their participation in global value chains. The results also suggest that SMEs with linkages to global value chain activities are more likely to have a higher level of human capital, higher productivity, more assets, and investment in research and development. We also find that "learning by exporting" and proximity to an export hub tend to play an important role in shaping SMEs' role in global value chains.
Subjects: 
global value chains
human capital
small and medium-sized enterprises
JEL: 
F12
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.