A firm-level analysis of global value chain participation effects

Stemberger, Jakob (author), Zajc Kejžar, Katja (author)

This paper deals with global value chain (hereafter GVC) participation at firm level and analyses the impact of participation on firms’ TFP. It proposes a novel metric for GVC involvement at firm level, encompassing both backward and forward linkages, akin to the macro-level measure. The analysis delves into aspects not systematically explored in prior literature, including a firm’s linkage direction (forward or backward), extent of involvement (regional European or global) and organisational forms (vertical integration or outsourcing). Methodologically, it utilises the PSM-DID method—applying DDD where appropriate—and assess whether GVC participation fosters productivity (i.e. test for the learning effect) based on the population of Slovenian firms over the 2013–2022 period. Sensitivity analysis examines variations in thresholds for GVC participation and distinct pre- and post-treatment periods. GVC participation increases firm productivity, driven mainly by forward linkages and regional European involvement. Distinct organisational forms of GVC participating firms are found not to have systematically different effects on firm productivity.

• Language: English
• Keywords: enterprises, globalization, value chain, productivity, GVC participation, backward/forward participation, vertical integration, outsourcing, TFP, propensity score matching
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: In print
• Publication version: Version of Record
• Year: 2025
• PID: 20.500.12556/RUL-179885
• UDC: 658
• ISSN on article: 1610-2878
• DOI: 10.1007/s10290-025-00620-5
• COBISS.SI-ID: 258705667
• Publication date in RUL: 26.02.2026

Record is a part of a journal

• Title: Review of world Economics
• Shortened title: Rev. world econ.
• Publisher: Springer, Institute for World Economics
• ISSN: 1610-2878
• COBISS.SI-ID: 6783260

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: podjetje, globalizacija, veriga vrednosti, produktivnost

Projects

• Funder: ARIS - Slovenian Research and Innovation Agency
• Project number: P5-0117
• Name: Trajnostna konkurenčnost slovenskega gospodarstva v evropskem in globalnem okviru