Assessing the gains from moving along the global value chain: Evidence from Costa Rica’s electronics sector

Alessandro Maravalle and Elena Vidal Muñoz

No 1874, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper develops a framework to evaluate the potential economic gains from deeper participation in global value chains (GVCs). The approach combines measures of revealed comparative advantage with estimates of value-added distribution along GVCs to identify opportunities for upgrading into higher–value-added production stages. It then quantifies the long-term economic effects of such upgrading using a structural gravity model. The framework is applied to Costa Rica’s electronics sector, a key focus of the country’s strategy to expand its role in the semiconductor value chain. The findings indicate that strengthening Costa Rica’s position within the electronics GVC could lead to substantial long-term increases in exports, output, and real wages.

Keywords: Global Value Chains; gravity model; revealed comparative advantages; trade policy (search for similar items in EconPapers)
JEL-codes: F1 F13 F14 (search for similar items in EconPapers)
Date: 2026-07-17
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1874-en

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