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.


GVC Participation and Economic Transformation: Lessons from three sectors

Integration into Global value chains (GVCs) provides opportunities for economic growth and development. However, the nature and extent of these opportunities differ across countries and sectors, and participation in GVCs can support processes of economic transformation in a variety of ways depending on the type of GVC. This paper explores some of the linkages between GVC participation and economic transformation at the sectoral level, with a view to assisting countries in assessing the various policy options for maximising their comparative advantages and their benefits from GVC participation. Three aspects of the relationship between GVC participation – defined as the use of foreign intermediates and integration into international production networks – and economic transformation are explored: i) sectoral differences in upgrading dynamics; ii) the role of services; and iii) resilience to external shocks. A range of qualitative and empirical approaches are used to explore and test the robustness of the relationship for three sectors presenting different characteristics in terms of their trade dynamics and links with economic transformation: mining and quarrying; motor vehicles, trailers and semi-trailers; and transport and storage services.


Keywords: Services; Resilience, Multi-Regional Input Output, Sectoral Analysis, Economic Transformation, Network Analysis, Developing Countries, Upgrading, Global Value Chain
JEL: F60: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: General; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; F14: International Economics / Trade / Empirical Studies of Trade
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