373
RWANDA AND WEST BENGAL CASE STUDY
a. Agriprocessing
b. Textiles, apparel, and leather
Sourcing: imports vs. local
Sourcing: imports vs.local
20,000
Amount sourced (US$, thousand)
Amount sourced (US$, thousand)
FIGURE 11.9 The effect of global value chain participation (direct exporting) on firm imports and employment in Rwanda, 2008–17
15,000
10,000
5,000 −2
−1
0
1
2
20,000 15,000 10,000 5,000 0
3
−2
Years since exporting in GVC Imports
0
1
2
3
Local purchases
Total employment dynamics
Total employment dynamics 300 Employment numbers
500 Employment numbers
−1
Years since exporting in GVC
400 300 200 100
200
100
0
0 –2
–1
0
1
2
3
−2
Years since exporting in GVC
−1
0
1
2
Years since exporting in GVC Total
Formal
Casual
Source: World Bank calculations. Note: GVC = global value chain.
likely to export and contribute a disproportionally high share of exports, and regression analysis suggests FDI is positively correlated with a sector’s export share. Using firm- and transaction-level data, network analysis helps illustrate interfirm relationships in selected value chains. The network analysis shows that foreign firms tend to be positioned at the end of domestic value chains, given that they are more likely to export. Network analysis further suggests that GVC participation across multiple sectors is dominated by a small number of foreign-owned firms. This approach can show which types of firms are engaging in GVCs as exporters and as suppliers
3
