Global Value Chains and Inward FDI: An Empirical Investigation of European Firms — Joanna Wolszczak-Derlacz

Speaker

Joanna Wolszczak-Derlacz, Ph.D. (Gdańsk University of Technology, Poland)

Abstract

The aim of this study is to provide a picture on how and why the level of GVC integration of a given market can attract foreign firms. Our paper contributes to the literature along several dimensions. First, unlike earlier studies which use country-level and sector-level data, our analysis is carried out at firm-level. To this end, we construct a unique panel dataset for European Union (EU-28) firms over the period 2008–2014 merging AMADEUS and Historical ORBIS data. While the first dataset provides us with firms financial and economic information, the second allows us to collect information on firm’s yearly ownership structure. Second, our analysis explores the existence of heterogeneity in the impact of GVC participation in relation to the EU membership of the host country (old and new EU member states) and the macro-sectors (manufacturing and services). Third, we verify if the impact of GVC on inward FDI depends not only on the intensity of GVC involvement but also on the position within the GVC. Our estimates suggest that country-sector GVC participation, via both backward and forward linkages, has a positive effect on firm’s likelihood to receive FDI. However, some degree of heterogeneity exists at the level of both countries and sectors.

Room

Medienraum (A-211)

Virtually via Teams If interested, please send an Email to kcg-office@ifw-kiel.de to receive a teams-Link to the seminar.