From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Nepal Integration into Value Chains
The rise of global value chains (GVCs) is one of the most important transformation in global trade and investment occurred in the last decades. Once concentrated among a few large economies, global flows of goods, services, and capital now reach an...
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| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26564244/evidence-policy-supporting-nepal’s-trade-integration-strategy-policy-note-2-nepal-integration-value-chains-stylized-facts-policy-options http://hdl.handle.net/10986/24935 |
| Summary: | The rise of global value chains (GVCs)
is one of the most important transformation in global trade
and investment occurred in the last decades. Once
concentrated among a few large economies, global flows of
goods, services, and capital now reach an ever larger number
of economies worldwide. Falling transport costs due to
important innovations such as containerization, lower trade
costs achieved both through a general reduction in tariffs
worldwide and by the proliferation of trade and investment
agreements, the Information and Communication Technologies
(ICT) revolution, and trends in global business to
outsource, non-core business functions paired with a drive
towards cutting costs on goods produced for export, have led
to, second unbundling of globalization in the 1990s and
2000s (Baldwin and Lopez-Gonzalez 2015). Nepal’s National
Trade Integration Strategy 2015 (NTIS 2015) was developed
with the objective of enhancing the contribution of the
trade sector to growth and to overcome the constraints and
challenges associated with trade development and export
promotion. This note explores some stylized facts about
Nepal’s integration in GVCs and identifies policy
recommendations in cross-cutting areas that relate to most
of the export sectors prioritized by the NTIS 2015. These
recommendations are not meant to be specific to individual
value chains or products and are based on the challenges
identified through data analysis and interviews with firms
in key export sectors and based on good practices observed
elsewhere. The report is structured in three sections beside
the introduction. The second section presents five stylized
facts about Nepal’s exports that are related to GVC
participation. The third section proposes some policy
recommendations to address the issues highlighted in the
analysis. The last section concludes. |
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