productivity gains. Contrary to previous work that neglects dependencies between suppliers in global value chains, we explicitly … account for input linkages that impact both channels of productivity improvement. Using sector-level data from the World Input …-Output Database, we show that market share reallocation has a markedly larger effect on productivity change than innovation. …

is highly disaggregated at the industry level with an input-output network structure. Measured productivity in the model …-specific, uncorrelated across industries. The bulk of the aggregate fluctuations, including those in aggregate measured productivity, are … data. Our second finding is that about half of the decrease in the cyclicality of measured productivity in the U.S. after …