GVC participation, firm characteristics and performance : firm-level evidence from CEE

Ponikvar, Nina (avtor), Stemberger, Jakob (avtor), Zajc Kejžar, Katja (avtor)

This paper investigates the effect of GVC participation on various aspects of firm performance-investment rate, firm size, profit margin, and labour productivity. Following the micro approach, participating firms are identified using transaction trade data, while the organisational form of participation is determined using firm-level data on inward and outward foreign direct investments (FDI). We test the role of GVC participation on firm performance based on propensity score matching applied to firm population data for a small, open Central and Eastern European country during 2006-2016 in two steps. Firstly, we compare GVC participating firms with non-participating firms and find that participating firms have, on average, larger fixed assets, higher gross investment rates, and generate higher value added per employee compared to non-participating firms, while no statistically significant differences are found in profit margins between the two groups. Moreover, on average, backward participation has slightly higher average treatment effects on all aspects of firm performance than forward participation. Secondly, we focus only on GVC participating firms and find that the organisational form of GVCs, i.e., vertical integration and outsourcing, does not have consistent effects on various aspects of firm performance. Firms with outward FDI outperform other GVC participating firms in labour productivity, regardless of direction of vertical integratinon. Vertically integrated manufacturing firms with inward FDI invest less than their outsourcing peers, while their productivity and profit margins are not significantly lower.

• Jezik: Angleški jezik
• Ključne besede: Central and Eastern Europe, international economics, supply chain, GVC, backward participation, forward participation, vertical integration, outsourcing, firm performance, propensity score matching
• Vrsta gradiva: Članek v reviji
• Tipologija: 1.01 - Izvirni znanstveni članek
• Organizacija: EF - Ekonomska fakulteta
• Status publikacije: Objavljeno
• Različica publikacije: Recenzirani rokopis
• Datum objave: 13.12.2023
• Leto izida: 2023
• Št. strani: Str. 25-53
• Številčenje: Vol. 28, spec. iss.
• PID: 20.500.12556/RUL-163833
• UDK: 339.9
• ISSN pri članku: 0949-6181
• COBISS.SI-ID: 176829187
• Datum objave v RUL: 11.10.2024

Gradivo je del revije

• Naslov: Journal of East European management studies
• Skrajšan naslov: J. East Eur. manag. stud.
• Založnik: Nomos
• ISSN: 0949-6181
• COBISS.SI-ID: 697875

Sekundarni jezik

• Jezik: Slovenski jezik
• Ključne besede: Srednja iin vzhodna Evropa, mednarodna ekonomija, preskrbovalne verige

Projekti

• Financer: ARIS - Javna agencija za znanstvenoraziskovalno in inovacijsko dejavnost Republike Slovenije
• Številka projekta: P5-0117
• Naslov: Trajnostna konkurenčnost slovenskega gospodarstva v evropskem in globalnem okviru