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GVC Participation and Economic Transformation: Lessons from three sectors

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  • Marie-Agnes Jouanjean
  • Julien Gourdon
  • Jane Korinek

Abstract

Integration into Global value chains (GVCs) provides opportunities for economic growth and development. However, the nature and extent of these opportunities differ across countries and sectors, and participation in GVCs can support processes of economic transformation in a variety of ways depending on the type of GVC. This paper explores some of the linkages between GVC participation and economic transformation at the sectoral level, with a view to assisting countries in assessing the various policy options for maximising their comparative advantages and their benefits from GVC participation. Three aspects of the relationship between GVC participation – defined as the use of foreign intermediates and integration into international production networks – and economic transformation are explored: i) sectoral differences in upgrading dynamics; ii) the role of services; and iii) resilience to external shocks. A range of qualitative and empirical approaches are used to explore and test the robustness of the relationship for three sectors presenting different characteristics in terms of their trade dynamics and links with economic transformation: mining and quarrying; motor vehicles, trailers and semi-trailers; and transport and storage services.

Suggested Citation

  • Marie-Agnes Jouanjean & Julien Gourdon & Jane Korinek, 2017. "GVC Participation and Economic Transformation: Lessons from three sectors," OECD Trade Policy Papers 207, OECD Publishing.
    • Handle: RePEc:oec:traaab:207-en
    DOI: 10.1787/617d7a19-en
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    References listed on IDEAS

    as
    1. Julien Gourdon & James Messent, 2017. "How government procurement measures can affect trade," OECD Trade Policy Papers 199, OECD Publishing.
    2. Charles Cadestin & Julien Gourdon & Przemyslaw Kowalski, 2016. "Participation in Global Value Chains in Latin America: Implications for Trade and Trade-Related Policy," OECD Trade Policy Papers 192, OECD Publishing.
    3. Julien Gourdon & Véronique Bastien & Laurence Folliot-Lalliot, 2017. "OECD taxonomy of measures affecting trade in government procurement processes," OECD Trade Policy Papers 198, OECD Publishing.
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    Cited by:

    1. Owusu, Solomon, 2021. "Powering structural transformation and productivity gains in Africa: The role of global value chains and resource endowments," MERIT Working Papers 2021-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Georgios Angelidis & Charalambos Bratsas & Georgios Makris & Evangelos Ioannidis & Nikos C. Varsakelis & Ioannis E. Antoniou, 2021. "Global Value Chains of COVID-19 Materials: A Weighted Directed Network Analysis," Mathematics, MDPI, vol. 9(24), pages 1-19, December.
    3. Wang, Jing & Rickman, Dan S. & Yu, Yihua, 2022. "Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model," Energy Economics, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Developing Countries; Economic Transformation; Global Value Chain; Multi-Regional Input Output; Network Analysis; Sectoral Analysis; Services; Resilience; Upgrading;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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