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Development Unchained: Trade and Industrialization in the Era of International Production

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  • Richard Kozul‐Wright
  • Piergiuseppe Fortunato

Abstract

Following a period of strong growth across all developing regions during the first decade of the millennium and a rapid rebound from the 2008 financial crisis, a combination of falling commodity prices, increasing financial market volatility and weak global demand has negatively affected growth performance in recent years. This growth slowdown has exposed the absence of structural transformation in many developing countries even under robust growth conditions. As a result, increasing attention has turned to the trade and industrialization opportunities offered by participation in global value chains (GVCs). However, while the evidence suggests a positive association between participation in GVCs and increased exports and inward FDI flows, evidence on their supporting structural transformation is weak. This paper discusses strategic approaches to participation in GVCs as part of a broader development agenda. In particular, it focuses on the opportunities offered by regional value chains (RVCs) and South‐South cooperation and examines the role of industrial policy, with reference to the case of Southern Africa.

Suggested Citation

  • Richard Kozul‐Wright & Piergiuseppe Fortunato, 2019. "Development Unchained: Trade and Industrialization in the Era of International Production," Global Policy, London School of Economics and Political Science, vol. 10(1), pages 29-40, February.
    • Handle: RePEc:bla:glopol:v:10:y:2019:i:1:p:29-40
    DOI: 10.1111/1758-5899.12601
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    References listed on IDEAS

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    Cited by:

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    2. Karishma Banga & Neil Balchin, 2023. "Linking Southern Africa to South Africa's exports: New opportunities for regional value chains," The World Economy, Wiley Blackwell, vol. 46(2), pages 346-362, February.

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