UNU-MERIT Working Papers

Working Paper #2019-014

Brazilian exporters and the rise of Global Value Chains: an empirical assessment

Caio Torres Mazzi #2019-014 PDF

This paper studies how production fragmentation has affected the
performance of Brazilian exporters in the manufacturing sector. We begin
by combining existing classifications of internationally traded products
to identify four different categories of goods, of which one
('customised intermediates') we associate more closely with fragmented
trade. We then proceed to compare the productivity premium of
international traders for these different categories. Our results
confirm exporting customised intermediates is associated with a superior
performance in comparison to other intermediates; but also highlights a
strong influence of sector specificities. We also investigate the
existence of learning-by-exporting effects and find no evidence for
firms that produce customised intermediates exclusively. However,
exports of customised products in general - i.e. both final and
intermediate goods - are associated with learning. This result suggests
trade in customised intermediates might be associated with learning when
firms manage to upgrade their products to other customised goods.

Keywords
  • exports
  • productivity
  • fragmentation
  • Global Value Chains
JEL codes
  • F14
  • F12
  • O33
  • O31

Cite this as

APA 7th ed.

Torres Mazzi, C. (2019). Brazilian exporters and the rise of Global Value Chains: an empirical assessment (UNU-MERIT Working Paper No. 2019-014). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=8157

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