Global Value Chains (GVCs) Trade (original) (raw)
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Taking Global Value Chains seriously. Studying GVCs: Why and How?
2017
Even classical economists, more accustomed to macro modelling and to black boxing organisations, recognize today that we need a fine comprehension of the multinationals' operations (Milberg and Winkler, 2013). We should understand the ways in which they organize, reorganize configure and reconfigure, govern and control their production chains, in which they create, capture and distribute value. Without this understanding the world economy becomes incomprehensible and impossible to fix. The liberalization and deregulation policies at regional and international levels as well as advances in transport and information/communication technologies allowed funds, goods, services and knowledge to move easily across borders. The disintegration of production chains, both by externalization and internationalization, by outsourcing and off shoring, was thus made easier. The multinationals companies (MNCs) could benefit, in order to enhance their competitive advantage, from lower costs of labour and more flexibility, from the most advantageous tax and environmental context. They could drive producers and territories to continuous competition, exploit the material resources and competences everywhere in the world, contribute to create new markets while deferring a great part of the risks of their activity on their suppliers, their subcontractors and employees. It is in this context that the digital revolution is taking place: the rise of robots replacing routine (intellectual as well as manual) workers (Brynjolfsson and McAfee, 2016; Ford, 2015) polarizing and deflating the job market
Global Value Chains: Measurement, Trends and Drivers
SSRN Electronic Journal, 2022
Non-technical summary 1 Introduction 2 Tracking GVCs: measurement and recent trends 2.1 Measuring GVC participation 2.2 Recent trends in GVCs Box 1 The role of MNEs in GVCs Box 2 A new tracker of GVC participation 3 Drivers of GVC participation 3.1 Factors contributing to the early rise of GVC participation 3.2 Drivers of the recent slowdown in GVC participation Box 3 Drivers of GVC participation: a gravity approach 4 The role of GVCs in the international transmission of shocks 4.1 Literature review 4.2 GVCs and the international transmission of shocks: recent experiences Box 4 The impact of the COVID-19 shock in China on GVCs 5 Discussion: the future of GVCs References
2017
This work is a product of the World Bank Group, the Institute of Developing Economies, the Organisation for Economic Cooperation and Development, the Research Center of Global Value Chains within the University of International Business and Economics, and the World Trade Organization and is based on joint research efforts to better understand the ongoing development and evolution of global value chains and their implications for economic development. The findings, interpretations, and conclusions expressed in this work are those of the authors and do not necessarily reflect the views of the co-publishing partners, their Boards of Executive Directors, or the governments they represent. The co-publishing partners do not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the co-publishing partners concerning the legal status of any territory or the endorsement or acceptance of such boundaries.
2020
Concerns over employment in Global Value Chains (GVCs) have risen in recent years, particularly following the 2008 financial crisis. This has led to the publication of a number of reports by international institutions, on the possible labour impact of chains. Some of these reports insist on win-win scenarios, where GVCs are supposed to promote growth whilst also leading to poverty reduction. The World Development Report 2020, for instance, hardly highlights the many points of tension linked to GVCsbased capitalism, despite decades of studies indicating the very fragile type of transnational business relations and employment it relies on (a critique by Leyden and Selwyn can be found here). On the other hand, the WTO GVC Development Report 2019 seems to suggest a more cautious approach to the issue. In particular, the report recognises the skills-polarising effects GVCs had on employment, and the missing link between rises in low-skill employment and real wages, theorised on the basis of classical models of international trade. In the executive summary, David Dollar openly acknowledges that comparative advantage and the Stopler-Samuelson theorem (arguing that international trade leads to convergence of the prices of production factors-wages in the case of employment) may not really work that well in developing regions. Indeed, his statement acknowledges a truth that has been recognised by many others for some time.
Reaping the Benefits from Global Value Chains
IMF Working Papers, 2015
Against the backdrop of the rise of global value chains (GVCs), particularly in Asia, this paper documents key developments of GVCs and investigates what factors cause economies to reap greater benefits from GVC participation. Key findings include: first, moving toward a more upstream position in production and raising economic complexity are associated with the country increasing its share of GVC value added. Second, fostering GVC participation and expanding the share of the domestic value added in a value chain require efforts to reduce trade barriers, enhance infrastructure, foster human capital formation, support research and development, and improve institutions.
2014
This briefing paper summarises how the policy and academic literature on global value chains (GVCs) has evolved, focusing on what’s new, what’s innovative, and more importantly – what’s missing. We draw conclusions for consideration by development agencies and their development partners. Such consideration matters, given that future processes of globalisation may well reflect the relative success of countries in entering GVCs and upgrading within them. July 2014
Do global value chains create jobs?
IZA World of Labor, 2016
The employment effects of GVC integration are mixed in developing countries, with both winners and losers emerging in the process. Labor market impacts go well beyond jobs and include changes in relative payoffs to skills, levels of inclusion, and skills development (upgrading) potential. Some of the key determinants of labor market outcomes in GVCs are not within the control of domestic policy. Women take a large share of jobs in labor-intensive chains, but lose out from upgrading.