Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317221 
Year of Publication: 
2023
Citation: 
[Journal:] Organizations and Markets in Emerging Economies [ISSN:] 2345-0037 [Volume:] 14 [Issue:] 1 [Year:] 2023 [Pages:] 26-55
Publisher: 
Vilnius University Press, Vilnius
Abstract: 
This paper examines the impact of global value chain (GVC) participation on total factor productivity in African economies. The analysis is based on panel corrected standard errors, IV-estimation technique and the novel Method of Moment (MM)-panel quantile regression. The results reveal that there is positive and significant relationship between global value chain and total factor productivity in African economies. Specifically, we discover that the impact of GVC participation on total factor productivity is positive and significant. This result is consistent across all the quartiles after employing MM-panel quartile regression. The coefficients of global value chains improve as we approach a higher quantile. The study concludes that GVC participation allows access to a larger global market which local firms may explore to gain from scale economies, and to learn using modern technology and innovations. It facilitates connections to cheaper and quality inputs for domestic production, while efficiency is guaranteed.
Subjects: 
Africa
domestic added value
forward added value
MM-panel quartile regression
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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