Search Results

You are looking at 1 - 7 of 7 items for :

  • "GVC indicator" x
Clear All
Vito Amendolagine, Mr. Andrea F Presbitero, Roberta Rabellotti, Marco Sanfilippo, and Adnan Seric
The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm-level data sets of 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education.
Vito Amendolagine, Mr. Andrea F Presbitero, Roberta Rabellotti, Marco Sanfilippo, and Adnan Seric

involvement in the region. 10 The two GVC indicators are constructed at the country-sector pair level following Koopman et al. (2011 ) who decompose gross exports into two main components: 1) the foreign value added content of intermediate imports embodied in gross exports, and 2) the domestic value added which is the value of domestically produced exports. This latter is further decomposed into: 1) direct domestic value added —that is, the value added embodied in exports of final goods and intermediates, absorbed by direct importers; 2) indirect domestic value added

Mr. Alvar Kangur
The growth of Italian exports has lagged that of euro area peers. Against the backdrop of unit labor costs that have risen faster than those in euro area peers, this paper examines whether there is a competitiveness challenge in Italy and evaluates the framework of wage bargaining. Wages are set at the sectoral level and extended nationally. However, they do not respond well to firm-specific productivity, regional disparities, or skill mismatches. Nominally rigid wages have also implied adjustment through lower profits and employment. Wage developments explain about 45 percent of the manufacturing unit labor cost gap with Germany. In a search-and-match DSGE model of the Italian labor market, this paper finds substantial gains from moving from sectoral- to firm-level wage setting of at least 3.5 percentage points lower unemployment (or higher employment) rate and a notable improvement in Italy’s competitiveness over the medium term.
International Monetary Fund. Asia and Pacific Dept

firms considered; in addition, intellectual property rights, capital expenditure, and worker productivity are also positively correlated with gross margins. In a nutshell, all of the firm-level data, as well as the macro-level GVC indicators, suggest that maintaining and improving competitiveness in electronics value chains will depend on the ability to continually raise productivity. Prepared by Dulani Seneviratne. 1 Firm-level data are from Orbis and cover both listed and unlisted firms in the electronics sector in Japan and Korea; the data set includes more

International Monetary Fund. European Dept.
This Selected Issues paper analyzes the competitiveness and wage bargaining reform in Italy. The growth of Italian exports has lagged that of euro area peers. Wages are set at the sectoral level and extended nationally. However, they do not respond well to firm-specific productivity, regional disparities, or skill mismatches. Nominally rigid wages have also implied adjustment through lower profits and employment. The analysis also suggests substantial gains from moving from sectoral- to firm-level wage setting of at least 3.5 percentage points, lower unemployment (or higher employment) rate and a notable improvement in Italy’s competitiveness over the medium term.
Mr. Alvar Kangur

. Italy: The Dynamics and Structure of Exports Sources: OECD; Eurostat; ISTAT; IMF, IFS Database; and IMF staff estimates. TIVA and GVC indicators come from Haugh and others (2016) . TIVA indicator refers to foreign value added embodied in final domestic demand. Structural GVC measure relates import value of intermediate goods to final domestic demand, is deflated and purged from cyclical effects. World Export Shares Relative to Germany (In percent) Sources: Haver Analytics, and staff calculations Italian exports are specialized in lower

International Monetary Fund. European Dept.

; ISTAT; and IMF staff estimates. Note: nominal wage is defined as a ratio of compensation of employees to employment. Figure 3. Italy: The Dynamics and Structure of Exports Sources: OECD; Eurostat; ISTAT; IMF, IFS Database; and IMF staff estimates. TIVA and GVC indicators come from Haugh and others (2016) . TIVA indicator refers to foreign value added embodied in final domestic demand. Structural GVC measure relates import value of intermediate goods to final domestic demand, is deflated and purged from cyclical effects. Figure 4. Italy: Labor Market