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Productivity Measurement in Global Value Chains

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  • Marcel Timmer

Abstract

Increasing fragmentation of production is posing new challenges to the measurement of productivity. Traditional approaches focus on firms, industries or countries as the unit of analysis. In this article we argue that studies of global value chains (GVCs) are needed. We introduce the GVC accounting approach as a complement to traditional KLEMS type productivity studies. We define cost shares and productivity growth and show how they can be empirically implemented using synthetic input-output tables. We discuss advantages of the new approach, provide caveats and outline new areas of research and statistics in order to better understand today’s global production systems.

Suggested Citation

  • Marcel Timmer, 2017. "Productivity Measurement in Global Value Chains," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 182-193, Fall.
    • Handle: RePEc:sls:ipmsls:v:33:y:2017:9
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    References listed on IDEAS

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    1. Jyrki Ali-Yrkkö & Petri Rouvinen, 2015. "Slicing Up Global Value Chains: a Micro View," Journal of Industry, Competition and Trade, Springer, vol. 15(1), pages 69-85, March.
    2. Haskel, J & Corrado, C & Jona-Lasinio, C & Iommi, M, 2012. "Intangible capital and growth in advanced economies: measurement methods and comparative results," Working Papers 9913, Imperial College, London, Imperial College Business School.
    3. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
    4. Antrà s, Pol & Yeaple, Stephen R., 2014. "Multinational Firms and the Structure of International Trade," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 55-130, Elsevier.
    5. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    6. Haskel, Jonathan & Iommi, Massimiliano, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement and Comparative Results," CEPR Discussion Papers 9061, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Carolina Calatayud & María Engracia Rochina Barrachina, 2023. "How do firms in Sub‐Saharan Africa benefit from global value chains?," South African Journal of Economics, Economic Society of South Africa, vol. 91(2), pages 214-241, June.
    2. Chuan Liu & Marianne Saam, 2022. "ICT and Productivity Growth Within Value Chains," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(3), pages 711-737, September.
    3. Jon Samuels & Erich Strassner, 2019. "Toward a Global Integrated Industry-level Production Account: A Proposal," International Productivity Monitor, Centre for the Study of Living Standards, vol. 36, pages 7-33, Spring.
    4. Tero Kuusi & Martti Kulvik & Juha-Matti Junnonen, 2022. "Productivity Growth in Construction Value Chains," International Productivity Monitor, Centre for the Study of Living Standards, vol. 42, pages 3-32, Spring.
    5. Maciej Grodzicki, 2018. "Prices of Value Added and Competitiveness in Global Value Chains," SPRU Working Paper Series 2018-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    6. Kuusi, Tero & Junnonen, Juha-Matti & Kulvik, Martti, 2020. "Construction Value Chains and Their Productivity Growth," ETLA Working Papers 79, The Research Institute of the Finnish Economy.
    7. Wen Chen & Reitze Gouma & Bart Los & Marcel P. Timmer, 2017. "Measuring the income to intangibles in goods production: a global value chain approach," WIPO Economic Research Working Papers 36, World Intellectual Property Organization - Economics and Statistics Division.
    8. Tsakanikas, Aggelos & Roth, Felix & Caliò, Simone & Caloghirou, Yannis & Dimas, Petros, 2020. "The contribution of intangible inputs and participation in global value chains to productivity performance – Evidence from the EU-28, 2000-2014," Hamburg Discussion Papers in International Economics 5, University of Hamburg, Department of Economics.
    9. Daniel Lind, 2022. "The China Effect on Manufacturing Productivity in the United States and Other High-income Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 42, pages 33-62, Spring.
    10. David Martinez Turegano, 2021. "The transmission of productivity through global value chains: formal concept and application to recent developments in the EU27," JRC Research Reports JRC122076, Joint Research Centre.
    11. Cecilia Jona-Lasinio & Valentina Meliciana, 2019. "Global Value Chains and Productivity Growth: Does Intangible Capital Matter?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 36, pages 53-78, Spring.
    12. Kuusi, Tero & Ali-Yrkkö, Jyrki, 2023. "Shock Infections through Global Value Chains," ETLA Working Papers 109, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    Productivity; Global Value Chains; Productivity Growth; Production Systems.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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