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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

Connecting Local Producers in Developing Countries to Regional and Global Value Chains

Update

This report analyzes the specific factors that affect the competitiveness of developing countries in global value chains (GVCs), and how these factors differ across four major economic sectors: agriculture, extractive industries, manufacturing and offshore services. Although integration into GVCs allows firms in developing countries to participate in international trade without developing the full range of capabilities required to produce a product or service, it will not automatically translate into positive development gains from trade without the appropriate policies to build productive capacity and ensure inclusive growth and upgrading capabilities. In order to inform these policies, it is necessary to identify the various local factors that affected the capacity of developing countries to meet GVC and RVC requirements, including their productive capacity, infrastructure and services, the business environment, trade and investment policies and industry institutionalization. The report identifies the need for further data and analysis in many areas, in particular the trade-related policy implications of TiVA-GVCs for developing countries, including emerging economies. This would provide a starting point for the discussion of the domestic policies and actions needed to promote and support developing countries’ beneficial participation in value chains and inform aid for trade interventions promoting effective integration into markets via GVCs.

English

Keywords: inclusive growth, competitiveness, global and regional value chains, productive capacity, trade integration, developing countries
JEL: F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; F15: International Economics / Trade / Economic Integration; F35: International Economics / International Finance / Foreign Aid; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; F21: International Economics / International Factor Movements and International Business / International Investment; Long-term Capital Movements; F13: International Economics / Trade / Trade Policy; International Trade Organizations; F16: International Economics / Trade / Trade and Labor Market Interactions
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