Kossi-Messanh Agbekponou, Angela Cheptea, Karine Latouche.
Working Papers SMART
The present paper investigates the link between the participation of French agri-food firms to retailer-driven value chains and their integration in global value chains (GVCs). We propose an empirical methodology based on the econometric estimation of firms’ extensive trade margins with multivariate models. We combine firm-level data from the AMADEUS database, French customs and the exhaustive list of firms certified with the private International Featured Standard (IFS) over the period 2006-2011. Our results show that firms that participate to retailer-driven value chains (IFS-certified firms) are by 5.83 percentage points more likely to integrate GVCs, i.e. to jointly import and export, than other firms in the sector. These results are confirmed by alternative estimations. Moreover, we show that the integration in GVCs is primarily driven by the higher probability to export of these firms.