New BERG Working Paper No. 179 by Philipp Mundt and Ivan Savin published
In the BERG Working Paper Series 179 Philipp Mundt und Ivan Savin have published a new paper entitled "Drivers of productivity change in global value chains: reallocation vs. innovation".
A complete overview of all BERG Working Papers published so far can be found here.
We revisit the debate on the role of technological improvement and market share reallocation in determining aggregate productivity gains. Contrary to previous work that neglects dependencies between suppliers in global value chains, we explicitly account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input- Output Database, we show that market share reallocation has a markedly larger effect on productivity change than innovation.