Implications of Value Creation and Capture in Global Value Chains – Lessons from 39 Grassroots Cases

Jyrki Ali-Yrkkö and Petri Rouvinen

No 16, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: Abstract This report summarizes 39 detailed ETLA case studies of global value chains (GVCs). The findings suggest that the value added in global value chains is less tied to their tangible aspects than what conventional wisdom suggests. Intangible aspects of GVCs tend to be more important, but their poor measurement in available statistics misguides. With the raise of GVCs, interests of governments and multinational enterprises operating within national borders are increasingly at odds, e.g., when it comes to transfer pricing practices. The evidence from Finland shows that misinterpreted (or ignored) transfer pricing rules have significant impacts on GDP and other macroeconomic measures. Since multinational enterprises, and GVCs they operate, have grown to dominate international trade, the focus of national policymakers should shift from companies and industries to tasks and functions that are conducted within national borders.

Keywords: Global value chains; Finland; Transfer pricing; Case studies; Economic policy (search for similar items in EconPapers)
JEL-codes: F23 L14 M11 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2013-08-19
New Economics Papers: this item is included in nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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