Global Value Chains: Surveying Drivers, Measures and Impacts

The production of most goods and services is nowadays vertically fragmented across different countries.This paper surveys the growing empirical literature on global value chains (GVCs), acknowledged as thecurrent paradigm for the international organisation of production. The paper starts by discussing the drivingforces behind the significant expansion of GVCs in recent decades. Next, it surveys the indicators used tomeasure this phenomenon, accounting for their different scope and required datasets. Finally, the impacts ofGVCs on trade flows, productivity and labour market developments, as well as some policy implications, arereviewed.