Global Value Chain Participation, Competition, and Markups: Evidence from Ethiopian Manufacturing Firms

• 발행기관: 세종대학교 경제통합연구소
• 저자명: Jieun Choi Emiko Fukase Albert G. Zeufack
• 간행물 정보: 『Journal of Economic Integration』제36권 제3호, 491~517쪽, 전체 27쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.09.30

영문 초록

This study uses detailed manufacturing census panel data for 2000 to 2014 to explore the relationship between Ethiopian firms’ global value chain (GVC) participation and markups. We find that GVC firms, defined as firms involved in both exporting and importing intermediate inputs, tend to have lower markups relative to non-trading firms and firms that are involved only in material imports. Moreover, the more intensely a firm is integrated into a GVC (measured by the share of export value added and imported inputs in total sales), the lower its markup is. Finally, we explore competition effects at the industry level and find that firms operating in industries with a relatively high GVC presence and suppliers selling inputs to such industries tend to have lower markups owing to horizontal competition and backward linkages, respectively. All of these findings suggest that GVC participation is associated with greater competition for Ethiopian firms.

목차

I. Introduction

II. Estimating GVC Participation and Markups

III. Estimation Strategy and Regression Results

IV. Conclusion

키워드

competition Ethiopia global value chain markup