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The impact of regulatory distance from global standards on a country’s centrality in global value chains

Author

Listed:
  • Tomohiko Inui
  • Kenta Ikeuchi
  • Ayako Obashi
  • Qizhong Yang

Abstract

We examine whether and how a country’s centrality in global value chains (GVCs) is dependent upon the extent to which its regulatory regime differs from the global norm, using country and sector-level data from OECD and UNCTAD. We find that the more similar a country’s regulatory regime is to global standards the more likely the country is to play a dominant role in GVCs. Our findings suggest that a country could enhance its centrality in GVCs by harmonising a set of technical regulations to the global standards.

Suggested Citation

  • Tomohiko Inui & Kenta Ikeuchi & Ayako Obashi & Qizhong Yang, 2021. "The impact of regulatory distance from global standards on a country’s centrality in global value chains," International Economics, CEPII research center, issue 166, pages 95-115.
    • Handle: RePEc:cii:cepiie:2021-q2-166-6
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    Cited by:

    1. Mahdi Ghodsi, 2024. "Regulatory convergence within technical barriers to trade," The World Economy, Wiley Blackwell, vol. 47(5), pages 1870-1915, May.
    2. Song, Yuegang & Du, Chongmiao & Zhang, Xiaoyu & Song, Changqing & Lee, Chien-Chiang, 2025. "Global value chain upgrading effects of the renewable energy product trade network: A dual perspective of dynamic evolution and non-linear effects," Renewable Energy, Elsevier, vol. 249(C).
    3. Chiara Castelli & Ronald B. Davies & Javier Flórez Mendoza & Mahdi Ghodsi, 2025. "Drivers of FDI in the EU: Regulatory distance and revealed technological advantage," wiiw Working Papers 264, The Vienna Institute for International Economic Studies, wiiw.
    4. Jihyun Eum, 2023. "Non‐tariff measures along global value chains: evidence from ASEAN countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(2), pages 27-53, November.

    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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