Global Value Chains

By Faezeh Raei, A. Ignatenko, Borislava Mircheva. IMF Working Papers, 2019

132 citations recorded by the source corpus.

Over the last two decades, world trade and production have become increasingly organized around global value chains (GVC). Recent theoretical work has shown that countries can benefit from participation in GVCs through multiple channels. However, little is known empirically about the economic importance of supply chains. We use the Eora MRIO database to compute different measures of GVC participation for 189 countries and illustrate global patterns of supply chains as well as their evolution over time in order to contribute to this topic. We find that GVC-related trade, rather than conventional trade, has a positive impact on income per capita and productivity, however there is large heterogeneity and the gains appear more signifcant for upper-middle and high-income countries. We document that “moving up” to more high-tech sectors while participating in major supply chains does take place but is not universal, suggesting other factors matter. We confirm the findings of the standard gravity literature for GVC trade; highlighting the key role of institutional features such as contract enforcement and the quality of infrastructure as determinants of GVC participation.

Subfields: Sociology and Political Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/090ba069d118a5ac7f14c14cd01f7ae72becd699

Citations in the corpus

• Determinants of Global Value Chain Participation: Cross-Country Evidence (2020, unknown): “…to the empirical literature on the determinants of GVC participation (Baldwin and Taglioni 2012; Brooks and Ferrarini 2012; Noguera 2012; Blyde 2014; Cheng et al. 2015; Kowalski et al. 2015; United Nations 2015; Buelens and Tirpak 2017; Balié et al. 2019; Ignatenko, Raei, and Mircheva 2019).”