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Groningen Growth and Development Centre

Faculty of Economics and Business
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Paper accepted in The World Bank Economic Review

Date:18 February 2022
 The World Bank Economic Review
 The World Bank Economic Review

The paper "Jobs and Productivity Growth in Global Value Chains: New Evidence for Twenty-five Low- and Middle-Income Countries", written by Stefan Pahl, Marcel Timmer, Reitze Gouma, and Pieter Woltjer, has been accepted for publication in the The World Bank Economic Review.

Using newly developed data, the evolution of job and productivity growth in global value chains (GVCs) is analysed for twenty-five low- and middle-income countries. GVC jobs are found to be more productive than non-GVC jobs. Their share in the total labor force is small, in particular for low-income countries. Growth in GVC jobs varies widely across countries in the period 2000-14. Part of this can be accounted for by differences in the type of consumer market served. A bigger
part is accounted for by the speed with which countries expand activities within supply chains, measured as shares in GVC value added. Expansion in GVCs is positively correlated with labor productivity across countries as well as over time within detailed GVCs.

The preprint of this paper, including supplementary material, is published as GGDC Research Memorandum 191. The replication package for this paper, including sources and methods documentation on the construction of the dataset, is available on DataverseNL.