Global Value Chain Integration and Productivity: The Case of Turkish Manufacturing Firms - Economic Research Forum (ERF)

Global Value Chain Integration and Productivity: The Case of Turkish Manufacturing Firms

Yilmaz Kilicaslan, Uğur Aytun and Oytun Meçik


Date:
January, 2019

NO.
1283

Length:
40 pages

Topic:
L6. Industry Studies: Manufacturing
D2. Production and Organizations
E2. Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
J2. Demand and Supply of Labor
O1. Economic Development

In this study, we examine how firms’ positions (supplier, consumer, or both) in both global and domestic value chains (GVC andDVC) affect their productivity. This is said to be the first attempt in exploring the impact of integration of firms to the GVCs on productivity generation in Turkish manufacturing industry at the firm level. The analysis is based on firm level data obtained from Turkish Statistical Institute (TurkStat) and covers the period from 2003 to 2015. The data used in the analysis includes all firms employing 20 or more employees in Turkish manufacturing industry. Our findings based on both fixed-effects and GMM estimations show that while supplier position on domestic chain has negative effect on productivity, the same position in GVC vanishes this effect. Consumer position in the GVC, on the other hand, provide more benefits to SMEs than to large-scale firms.

Research Associates

Yilmaz Kilicaslan

Associate Professor Doctor, Department of Economics, Anadolu University, Eskisehir, Turkey


Authors

Uğur Aytun

Research Assistant, Ahi Evran University


Authors

Oytun Meçik

Eskişehir Osmangazi University


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