The investigation delves into the mechanisms through which productivity diffuses within Global Value Chains (GVC), assessing how national firms respond to changes in the overall productivity of their portfolio of trading partner countries. Utilizing the analytical framework proposed by Bartelsman et al. (2008), we apply it to a novel dataset featuring detailed firm-level information from three countries: Finland, France, and the Netherlands. The analysis focuses on the most productive national firms, those affiliated with multinational groups, and the shifts in GVC dynamics concerning productivity transmission with the United Kingdom post-Brexit. The primary contribution of this project lies in leveraging new data on European firms to evaluate the effectiveness of European GVCs in driving productivity growth and promoting convergence through trade networks. We also consider recent phenomena such as Brexit and the COVID-19 pandemic. Our findings hold relevant policy implications concerning the resilience of production networks across Europe. 

Leader: Marco Matani 

NPBs collaboration: 

• IMAD, Slovenia
• National Bank of Slovakia
• GEE, Portugal