Using Foreign Factors to Enhance Domestic Export Performance: A Focus on Southeast Asia

Javier Lopez Gonzalez

No 191, OECD Trade Policy Papers from OECD Publishing

Abstract: A country or firm's position in the value chain will largely depend on its comparative advantage, and therefore the mix of skills and resource endowments it brings to international production. For some, this might initially involve specialising in the labour intensive segments while others may specialise in the high-tech elements. In either case what matters is whether participation leads to growing economic activity. This paper discusses how countries can use foreign value added to enhance their domestic export performance. It shows that foreign sourcing is a complement to, rather than substitute for, the creation of domestic value added and employment in exports highlighting how, with GVCs, export competitiveness is inextricably linked to importing. The paper discusses how ASEAN countries can leverage different policies in order to make the most out of GVCs.

Keywords: exports; global value chains; globalisation; South East Asia; trade (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 F15 F63 F66 F68 (search for similar items in EconPapers)
Date: 2016-10-11
New Economics Papers: this item is included in nep-int and nep-sea
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:191-en

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