IDEAS home Printed from https://ideas.repec.org/p/oec/traaab/179-en.html
   My bibliography  Save this paper

Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies

Author

Listed:
  • Przemyslaw Kowalski

    (OECD)

  • Javier Lopez Gonzalez
  • Alexandros Ragoussis

    (OECD)

  • Cristian Ugarte

Abstract

Although global value chains (GVCs) are often considered a defining feature of the current wave of globalisation, little is known about: i) what drives GVC participation; ii) what the benefits associated to growing participation are; or iii) how developing countries engage and benefit from GVCs. This paper tackles these questions empirically. The evidence indicates there are important benefits to be had from wider participation in terms of enhanced productivity, sophistication and diversification of exports. Structural factors, such as geography, size of the market and level of development are found to be key determinants of GVC participation. Trade and investment policy reforms as well as improvements of logistics and customs, intellectual property protection, infrastructure and institutions can, however, also play an active role in promoting further engagement. A more in-depth analysis of GVC participation and policy context in five developing sub-regions in Africa, the Middle East and Asia highlights key differences and similarities, and can be a starting point for policy makers in the regions to assess their countries’ GVC engagement and to consider policy options.

Suggested Citation

  • Przemyslaw Kowalski & Javier Lopez Gonzalez & Alexandros Ragoussis & Cristian Ugarte, 2015. "Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies," OECD Trade Policy Papers 179, OECD Publishing.
  • Handle: RePEc:oec:traaab:179-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/5js33lfw0xxn-en
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ludwig Schulz & Helge Tolksdorf & Ayşe Yüreklí & Erdal Yalcin & Galina Kolev, 2016. "Die schwierige Beziehung der EU zur Türkei: Wie sieht die Zukunft der Türkei aus?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(21), pages 03-25, November.
    2. repec:ksp:journ6:v:4:y:2017:i:3:p:278-286 is not listed on IDEAS
    3. Jan Hagemejer, 2015. "Productivity spillovers in the GVC. The case of Poland and the New EU Member States," Working Papers 2015-42, Faculty of Economic Sciences, University of Warsaw.
    4. K. Buysse & E. Vincent, 2015. "Factors explaining emerging economies’ growth slowdown," Economic Review, National Bank of Belgium, issue ii, pages 61-79, september.
    5. World Bank Group, 2016. "Global Economic Prospects, January 2016," World Bank Publications, The World Bank, number 23435.
    6. Zaclicever, Dayna, 2018. "Beyond the copper sector: Chile’s engagement in international production networks," Comercio Internacional 139, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Aslihan Atabek & Dan Andrews & Rauf Gonenc, 2017. "Rebalancing Turkey’s Growth by Improving Resource Allocation and Productivity in Manufacturing," Working Papers 1704, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    8. Huriye Alkin, 2018. "Gelen Dogrudan Yabanci Sermaye Yatırimlari ile Geri Bag Arasindaki Iliski," EconWorld Working Papers 18002, WERI-World Economic Research Institute, revised Mar 2018.
    9. ye, ming, 2016. "Trace the goods and value-added route in exports," MPRA Paper 73476, University Library of Munich, Germany.
    10. repec:spr:ssefpa:v:9:y:2017:i:6:d:10.1007_s12571-017-0682-2 is not listed on IDEAS
    11. Cecilia Jona Lasinio & Stefano Manzocchi & Valentina Meliciani, 2017. "Knowledge Based Capital and Value Creation in Global Supply Chains," Working Papers LuissLab 17134, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    12. repec:pal:eurjdr:v:30:y:2018:i:3:d:10.1057_s41287-017-0127-y is not listed on IDEAS
    13. repec:ers:journl:v:xx:y:2017:i:3a:p:942-960 is not listed on IDEAS
    14. Bratti, Massimiliano & Felice, Giulia, 2018. "Product innovation by supplying in domestic and foreign markets," Working Papers 2018-03, Joint Research Centre, European Commission (Ispra site).
    15. Ye, Ming & Meng, Bo & Wei, Shang-jin, 2015. "Measuring smile curves in global value chains," IDE Discussion Papers 530, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. repec:taf:oaefxx:v:5:y:2017:i:1:p:1389252 is not listed on IDEAS
    17. Ceren Gündoğdu & Dürdane Şirin Saracoğlu, 2016. "Participation of Turkey in Global Value Chains: An Analysis Based on World Input Output Database," ERC Working Papers 1610, ERC - Economic Research Center, Middle East Technical University, revised Sep 2016.
    18. Oecd, 2017. "Making trade work for all," OECD Trade Policy Papers 202, OECD Publishing.
    19. Montalbano, Pierluigi & Nenci, Silvia & Pietrobelli, Carlo, 2017. "Opening and linking up: Firms, global value chains and productivity in Latin America," MERIT Working Papers 030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    20. Roy, Martin, 2017. "The contribution of services trade policies to connectivity in the context of aid for trade," WTO Staff Working Papers ERSD-2017-12, World Trade Organization (WTO), Economic Research and Statistics Division.
    21. Zaclicever, Dayna, 2017. "Trade integration and production sharing: A characterization of Latin American and Caribbean countries’ participation in regional and global value chains," Comercio Internacional 137, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Keywords

    developing countries; East and Southern Africa; global value chains; GVCs; intermediate inputs; investment; Middle East and North Africa; regional trade agreements; South Asia; South East Asia; trade policy; upgrading; West and Central Africa;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F6 - International Economics - - Economic Impacts of Globalization

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:traaab:179-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/tdoecfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.