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Trade Policy Implications of Global Value Chains: Case Studies

Author

Listed:
  • Sébastien Miroudot

    (OECD)

  • Dorothée Rouzet

    (OECD)

  • Francesca Spinelli

    (OECD)

Abstract

Taking global value chains (GVCs) into account has important implications for trade policy. When production is vertically fragmented and trade in intermediate inputs is prevalent, one has to look differently at a certain number of issues. Through case studies, this paper provides new evidence on the incidence on services of tariffs levied on goods (case study 1) and then discusses effective rates of protection in a world of GVCs and what the removal of tariffs on intermediate inputs implies, using the example of Canada (case study 2). To illustrate how trade agreements could be made more relevant for GVCs, the paper further looks at sectoral approaches in trade negotiations through the example of the Information Technology Agreement (case study 3) and finally compares the network of regional trade agreements in force with global production networks (case study 4).

Suggested Citation

  • Sébastien Miroudot & Dorothée Rouzet & Francesca Spinelli, 2013. "Trade Policy Implications of Global Value Chains: Case Studies," OECD Trade Policy Papers 161, OECD Publishing.
  • Handle: RePEc:oec:traaab:161-en
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    File URL: http://dx.doi.org/10.1787/5k3tpt2t0zs1-en
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    References listed on IDEAS

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    4. Sébastien Miroudot & Rainer Lanz & Alexandros Ragoussis, 2009. "Trade in Intermediate Goods and Services," OECD Trade Policy Papers 93, OECD Publishing.
    5. Schuschny, Andrés Ricardo & Durán Lima, José Elías & De Miguel, Carlos J., 2007. "El modelo GTAP y las preferencias arancelarias en América Latina y el Caribe: reconciliando su año base con la evolución reciente de la agenda de liberalización regional," Manuales 53, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    8. Alvarez, Mariano & Durán Lima, José Elías, 2011. "Manual de comercio exterior y política comercial: nociones básicas, clasificaciones e indicadores de posición y dinamismo," Documentos de Proyectos 430, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", pages 129-137.
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    11. Maurer, Andreas & Degain, Christophe, 2010. "Globalization and trade flows: What you see is not what you get!," WTO Staff Working Papers ERSD-2010-12, World Trade Organization (WTO), Economic Research and Statistics Division.
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    Cited by:

    1. repec:spr:weltar:v:153:y:2017:i:4:d:10.1007_s10290-017-0292-2 is not listed on IDEAS
    2. Davide Del Prete & Giorgia Giovannetti & Enrico Marvasi, 2017. "Global value chains participation and productivity gains for North African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 675-701, November.
    3. Pasadilla, Gloria O. & Wirjo, Andre, 2016. "Services-Manufacturing Linkage and the Role of Policy," Philippine Journal of Development PJD 2014-2015 Vol. 41-42 , Philippine Institute for Development Studies.
    4. AfDB AfDB, . "Africa Competitiveness Report 2015," Africa Competitiveness Report, African Development Bank, number 2165, July-Dece.
    5. World Economic Forum & World Bank & African Development Bank & Organisation for Economic Co-operation and Development, 2015. "The Africa Competitiveness Report 2015," World Bank Publications, The World Bank, number 22014.

    More about this item

    Keywords

    cumulative tariffs; effective rates of protection; fragmentation of production; global value chains; network trade; regional trade agreements; trade in intermediate inputs; vertical specialization;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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