Connecting Local Producers in Developing Countries to Regional and Global Value Chains: Update

Penny Bamber, Karina Fernandez-Stark, Gary Gereffi and Andrew Guinn
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Penny Bamber: Duke University Center on Globalization, Governance and Competitiveness
Karina Fernandez-Stark: Duke University Center on Globalization, Governance and Competitiveness
Gary Gereffi: Duke University Center on Globalization, Governance and Competitiveness
Andrew Guinn: University of North Carolina

No 160, OECD Trade Policy Papers from OECD Publishing

Abstract: This report analyzes the specific factors that affect the competitiveness of developing countries in global value chains (GVCs), and how these factors differ across four major economic sectors: agriculture, extractive industries, manufacturing and offshore services. Although integration into GVCs allows firms in developing countries to participate in international trade without developing the full range of capabilities required to produce a product or service, it will not automatically translate into positive development gains from trade without the appropriate policies to build productive capacity and ensure inclusive growth and upgrading capabilities. In order to inform these policies, it is necessary to identify the various local factors that affected the capacity of developing countries to meet GVC and RVC requirements, including their productive capacity, infrastructure and services, the business environment, trade and investment policies and industry institutionalization. The report identifies the need for further data and analysis in many areas, in particular the trade-related policy implications of TiVA-GVCs for developing countries, including emerging economies. This would provide a starting point for the discussion of the domestic policies and actions needed to promote and support developing countries’ beneficial participation in value chains and inform aid for trade interventions promoting effective integration into markets via GVCs.

Keywords: competitiveness; developing countries; global and regional value chains; inclusive growth; productive capacity; trade integration (search for similar items in EconPapers)
JEL-codes: F13 F15 F16 F21 F23 F35 F63 (search for similar items in EconPapers)
Date: 2014-01-08
New Economics Papers: this item is included in nep-geo and nep-int
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Citations: View citations in EconPapers (14)

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