Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteri...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/567861489688859864/Economic-upgrading-through-global-value-chain-participation-which-policies-increase-the-value-added-gains http://hdl.handle.net/10986/26348 |
| Summary: | The emergence of global value chains has
opened up new ways to achieve development and
industrialization. However, new evidence shows that not all
countries have gained from participating in global value
chains, and that country-specific characteristics matter for
economic upgrading in global value chains. This paper uses
two panel data sets of developing and industrialized
countries at the sectoral level to relate global value chain
participation as a buyer and seller to domestic value added.
These are combined with a wide range of policy measures at
the country level that can play a role in economic upgrading
through global value chains, by targeting global value chain
integration or the quality and conditions of input and
output factors. First, the study finds that global value
chain integration increases domestic value added, especially
on the selling side, which holds across all income levels.
Second, the results highlight the importance of policy for
economic upgrading through global value chain integration.
Although the study cannot claim causal evidence, all the
assessed policy areas are consistently shown to mediate the
effects of global value chains and magnify the gains for
domestic value added. Third, a detailed analysis shows that
several policy areas mediate the gains from global value
chains more through integration as a seller. Finally, the
study observes that many of the results are driven by high-
and upper-middle-income countries. |
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