Upgrading the global value chain with regime-wide rules of origin

Thang Doan and Ha Thanh Le

Applied Economics Letters, 2021, vol. 28, issue 2, 143-147

Abstract: Participation in the global value chain (GVC) is defined as the value added contained in exports, looking both backward and forward from a reference nation. This article applies the gravity model to investigate the effects of the regime-wide rules of origin (RoO), including diagonal cumulation, de minimis, and self-certification requirements, on GVC participation with 40,568 observations covering 61 countries from 2005–2015. Our main finding is that the liberal RoO can help upgrade both types of GVC participation.

Date: 2021
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DOI: 10.1080/13504851.2020.1739223

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