A decision-support model for productivity upgrading in global value chains
Public agencies must decide which firms should receive scarce support for global-value-chain (GVC) productivity upgrading and which constraint should be addressed first. This paper develops a transparent model-based decision-support system (DSS) architecture that combines export/GVC exposure, operational capabilities, innovation, and frictions. Using 171,947 World Bank Enterprise Survey observations from 167 economies during 2006–2025, weighted high-dimensional fixed-effects models estimate an empirical upgrading kernel that is translated into ranking, sorting, and budget-constrained selection rules. Direct export intensity is positively associated with labor-productivity growth, but the most stable signals are digital presence, audited financial statements, product innovation, and low cash-operations friction; dominance analysis assigns more explanatory importance to innovation and frictions than to GVC exposure alone. The DSS therefore helps agencies classify firms into scale-up, capability-building, friction-reduction, or monitoring categories rather than targeting exporters mechanically. It is an exploratory, associational decision aid that requires local validation and recalibration before use in eligibility or funding decisions.
Authors
- Charilaos Mertzanis (ORCID: https://orcid.org/0000-0002-9028-5585)
- Apostolos Vetsikas (ORCID: https://orcid.org/0000-0003-4118-7433)
- Athanasios Pavlopoulos (ORCID: https://orcid.org/0000-0001-5498-1690)
- Marios Tsioufis
- Mohamed Shaker Ahmed (ORCID: https://orcid.org/0000-0002-4858-3626)
Institutions
- Abu Dhabi University (AE)
- University of Thessaly (GR)
- University of Peloponnese (GR)
- Al Ain University (AE)
Publication Details
- Journal
- Journal of the Operational Research Society
- Published
- 2026-10-05
- DOI
- https://doi.org/10.1080/01605682.2026.2740707
- Primary Topic
- Global trade and economics
- Type
- article
- Field-Weighted Citation Impact
- 0.00