Global Value Chain and Total Factor Productivity in Africa

This paper examines the impact of global value chain (GVC) participation on total factor productivity in African economies. The analysis is based panel corrected standard errors, IV-estimation technique and novel Method Moment (MM)-panel quantile regression. results reveal that there positive significant relationship between Specifically, we discover GVC significant. result consistent across all quartiles after employing MM-panel quartile coefficients chains improve as approach a higher quantile. study concludes allows access to larger market which local firms may explore gain from scale economies, learn using modern technology innovations. It facilitates connections cheaper quality inputs for domestic production, while efficiency guaranteed.