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Determinants of Global Value Chain Participation: Cross-Country Evidence

Ana Fernandes (), Hiau Looi Kee () and Deborah Winkler ()

No 9197, Policy Research Working Paper Series from The World Bank

Abstract: The past decades witnessed big changes in international trade with the rise of global value chains. Some countries, such as China, Poland, and Vietnam, rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of participation in global value chains, based on empirical evidence from a panel data set covering more than 100 countries over the past three decades. The evidence shows that factor endowments, geography, political stability, liberal trade policies, foreign direct investment inflows, and domestic industrial capacity are very important in determining participation in global value chains. These factors affect participation in global value chains more than traditional exports.

Keywords: International Trade and Trade Rules; Common Carriers Industry; Food&Beverage Industry; Plastics&Rubber Industry; Business Cycles and Stabilization Policies; Construction Industry; General Manufacturing; Pulp&Paper Industry; Textiles; Apparel&Leather Industry; Industrial and Consumer Services and Products; Transport and Trade Logistics; Trade and Multilateral Issues (search for similar items in EconPapers)
Date: 2020-03-26
New Economics Papers: this item is included in nep-geo, nep-int, nep-sea, nep-tid and nep-tra
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