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Firm productivity and functional specialisation

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  • Gaaitzen de Vries
  • Aobo Jiang
  • Oscar Lemmers
  • Shang‐Jin Wei

Abstract

This paper examines the relation between productivity and specialisation of firms in business functions. We distinguish between specialisation in R&D, fabrication and marketing based on the firm's employment composition over these functions using unique survey data of Dutch firms. Our results suggest that firms specialised in R&D and marketing are significantly more productive compared to firms specialised in fabrication. We find that measures of upstreamness based on input–output tables do not significantly relate to firm productivity and are uncorrelated to measures of functional specialisation.

Suggested Citation

  • Gaaitzen de Vries & Aobo Jiang & Oscar Lemmers & Shang‐Jin Wei, 2021. "Firm productivity and functional specialisation," The World Economy, Wiley Blackwell, vol. 44(5), pages 1232-1260, May.
    • Handle: RePEc:bla:worlde:v:44:y:2021:i:5:p:1232-1260
    DOI: 10.1111/twec.13055
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    4. Valentine Fays & Benoît Mahy & François Rycx, 2023. "Wage differences according to workers' origin: The role of working more upstream in GVCs," LABOUR, CEIS, vol. 37(2), pages 319-342, June.
    5. Yu, Chenyang & Tan, Yuanfang & Zhou, Yu & Zang, Chuanxiang & Tu, Chenglin, 2022. "Can functional urban specialization improve industrial energy efficiency? Empirical evidence from China," Energy, Elsevier, vol. 261(PA).
    6. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    7. Bontadini, Filippo & Evangelista, Rinaldo & Meliciani, Valentina & Savona, Maria, 2024. "Technology, global value chains and functional specialisation in Europe," Research Policy, Elsevier, vol. 53(2).
    8. Benoît Mahy & François Rycx & Guillaume Vermeylen & Mélanie Volral, 2022. "Productivity and wage effects of firm‐level upstreamness: Evidence from Belgian linked panel data," The World Economy, Wiley Blackwell, vol. 45(7), pages 2222-2250, July.
    9. Andrea Coveri & Antonello Zanfei, 2023. "The virtues and limits of specialization in global value chains: analysis and policy implications," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 73-90, March.
    10. Kossi Messanh Agbekponou & Ilaria Fusacchia, 2023. "Global value chains' position and value capture: Firm evidence in agri-food industry," Post-Print hal-04321670, HAL.

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