2022 Fiscal Year Annual Research Report
Digitalisation, global value chains, and enterprise formalisation: A cross-country, firm-level analysis
Project/Area Number |
21K13296
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Research Institution | Waseda University |
Principal Investigator |
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Project Period (FY) |
2021-04-01 – 2023-03-31
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Keywords | digitalisation / firm-level analysis / formalisation / global value chains / informal enterprises |
Outline of Annual Research Achievements |
This study assesses the role of digitalisation in enterprise formalisation and participation in global value chains (GVCs). This study employs probit and tobit estimations, using pooled cross-sectional firm-level data from the World Bank’s Enterprise Surveys, including 116 countries and 56,304 enterprises from 2007 to 2019. The estimated results show that enterprises with digital connectivity are more likely to operate in the formal sector. Moreover, formalisation enables enterprises to engage in the GVCs and increase their participation level. The findings underscore the importance of digitalisation and formalisation in facilitating enterprises’GVC participation.
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