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Published: 2021-02-27
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DOI: https://doi.org/10.52932/jfm.v1i61.63
Issue
No. 61 (2021)
Section
Research Articles
How to Cite
Linh, N. T. M. . (2021). The effect of global value chain participation on total factor productivity – empirical evidence from developing countries. Journal of Finance and Marketing, 61(1), 18-30. https://doi.org/10.52932/jfm.v1i61.63

The effect of global value chain participation on total factor productivity – empirical evidence from developing countries

Nguyen Thi My Linh1
1 University of Finance - Marketing

Main Article Content

Abstract

International trade is increasingly shaped by global value chain. Participation in GVC is considered to offer countries opportunities for knowledge transfers from multinational enterprises and intensive use of technologically advanced imported inputs that would boost productivity (OECD, 2013). The objective of this study is to show global value participation, and other control factors such as capital stock per person, fertility rate, human capital and institutional quality affect total productivity factor in developing countries by employing Generalized Method of Moments (GMM) to analyse a panel data of 22 countries spanning from 2005 to 2015. The regression results show that both forward participation and human capital have significantly positive influences on total productivity factor. In addition, the fertility rate has significantly negative effect on it. Meanwhile, both backward participation and capital per capita have no significance. This results have several important contributions to policy makers of these countries. That these countries concentrating on global value participation shall increase their productivity and economic growth

Article Details

Keywords

Global value chain, total productivity factor, GMM

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