1887

OECD Trade Policy Papers

This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

English

Using Foreign Factors to Enhance Domestic Export Performance

A Focus on Southeast Asia

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.

English

Keywords: trade, globalisation, South East Asia, exports, global value chains
JEL: F15: International Economics / Trade / Economic Integration; F12: International Economics / Trade / Models of Trade with Imperfect Competition and Scale Economies; Fragmentation; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; F68: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Policy; F66: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Labor; F14: International Economics / Trade / Empirical Studies of Trade; F13: International Economics / Trade / Trade Policy; International Trade Organizations
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