New Publication in Economics Letters

Philipp Mundt has published: "Drivers of productivity change in global value chains: Reallocation vs. innovation" with Ivan Savin in Economics Letters. (DOI)


We investigate the role of technological improvement and market share reallocation in determining global changes in sectoral labor productivity. Contrary to previous work that neglects dependencies between suppliers in global value chains, we account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input–Output Database, we show that reallocation between countries has a larger effect on productivity change than innovation within countries.