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Value chain approaches to reducing policy spillovers on international business

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Listed:
  • Christopher Findlay

    (Australian National University)

  • Bernard Hoekman

    (European University Institute and CEPR)

Abstract

Government policy can add to the costs of doing international business. It can distort the construction of and raise the costs of operation of global value chains (GVCs), to the detriment of the participating economies. Given rising technological and market-driven headwinds confronting GVCs, countries seeking to attract GVC activities have greater incentives to identify and address policies that negatively affect international business investment. Cooperation of businesses with regulators, analysts, and researchers has the scope to develop better policy. This paper suggests principles for the design and operation of such cooperation, drawing on the experience with multi-stakeholder value chain partnerships and the policy responses to the 2020 COVID-19 pandemic.

Suggested Citation

  • Christopher Findlay & Bernard Hoekman, 2021. "Value chain approaches to reducing policy spillovers on international business," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 390-409, September.
    • Handle: RePEc:pal:joibpo:v:4:y:2021:i:3:d:10.1057_s42214-020-00083-5
    DOI: 10.1057/s42214-020-00083-5
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    Cited by:

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    5. Simon J. Evenett & Bernard Hoekman & Nadia Rocha and Michele Ruta, 2021. "The Covid-19 Vaccine Production Club: Will Value Chains Temper Nationalism?," RSCAS Working Papers 2021/36, European University Institute.
    6. Bernard Hoekman & Petros C. Mavroidis, 2021. "WTO Reform: Back to the Past to Build for the Future," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 5-12, April.
    7. Carlo Pietrobelli & Roberta Rabellotti & Ari Van Assche, 2021. "Making sense of global value chain-oriented policies: The trifecta of tasks, linkages, and firms," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 327-346, September.

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