Climbing up global value chains: Is the regional trade agreement network stepping stones or stumbling blocks?

Since the 1990s, the number and depth of regional trade agreements (RTAs) have grown rapidly, forming a network structure and playing an important role in global value chain (GVC) cooperation. This paper theoretically and empirically investigates the effect of RTA network centrality on GVC positions. We use social network analysis to construct network centrality indicators from three dimensions—individual, local, and global—based on network characteristics, which capture countries’ advantageous positions, and use upstreamness to measure GVC positions. We find that RTA network centrality can enhance GVC positions. Such effects are more pronounced in “WTO-extra” provisions and lower-middle-income countries. Total factor productivity and human capital levels are essential mechanisms. Moreover, we confirm that the RTA network improves GVC positions by promoting regionalization rather than globalized international fragmentation. In the face of increasing international competition, we reveal that regional economic integration is beneficial for improving GVC welfare.