Nature, sector, and GVC participation of firms: empirical insights from firm-level data in selected SSA countries

Abstract Global value chains (GVC) are currently an important developmental issue among development practitioners. Empirical studies on the peculiar nature of sub-Sahara African firms in the GVC are limited. This study examines the nature of firms and their likelihood of participating in GVC, focusing on contextual factors and the differences that exist in SSA countries. We employ the logit model and the Enterprise Survey data for four sub-Saharan African countries, namely Gambia, Kenya, Rwanda, and Zambia. The findings show that firm type, sector of operation, legal status, and firm ownership type are positively associated with firms’ GVC participation. We found factors such as firm size, firm location, the legal status of the firm, firm productivity, firm type, firm access to ICTs, finance, and managerial experience to significantly and positively affect firms participating in GVC with differences in the countries. Policies should be geared towards giving firms access to ICT infrastructure to give businesses global visibility. Small-scale firms should be supported to expand and take advantage of economies of scale and scope. Firms should be encouraged to become shareholding or partnership firms to boost their GVC chances.Impact statement This paper analysis the GVC participation of firms in sub-Saharan Africa by arguing that the Nature of firm, the Sector of operation and other firm characteristics greatly drives firm GVC participation in SSA. The study offers guide and policy implications as to what SSA should concentrate to boost firms GVC participation.