Economics & Finance / Macroeconomics / International Trade & Globalization

Exporters vs. Domestic Firms: Who's Really Winning in Global Value Chains? (Belgium Case)

Joep Konings

Think all companies in the same industry are the same? Think again. This video breaks down a groundbreaking 2018 NBER study (No. 25155) that used microdata from 40,194 Belgian manufacturing firms to expose the hidden truth about global value chains. We reveal how exporters—who dominate 75% of manufacturing output—are actually more dependent on foreign inputs, creating lower domestic value-added and multiplier effects compared to their domestic-focused counterparts. The study, led by researchers like Joep Konings and others, integrates a firm-level split into the World Input-Output Database (WIOD), showing a clear division: exporters drive backward participation (importing to export), while services lead forward participation (exporting intermediates). Discover why traditional input-output models lie, and what this means for economic policy, competitiveness, and your understanding of globalization. Get ready for a paradigm shift—this isn't just academic, it's the real story behind the numbers.