Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?

The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteri...

Full description

Bibliographic Details
Main Authors:	Kummritz, Victor, Taglioni, Daria, Winkler, Deborah
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	GLOBAL VALUE CHAIN GLOBALIZATION ECONOMIC UPGRADING STANDARDS POLICY
Online Access:	http://documents.worldbank.org/curated/en/567861489688859864/Economic-upgrading-through-global-value-chain-participation-which-policies-increase-the-value-added-gains http://hdl.handle.net/10986/26348

id	okr-10986-26348
recordtype	oai_dc
spelling	okr-10986-263482021-06-08T14:42:48Z Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains? Kummritz, Victor Taglioni, Daria Winkler, Deborah GLOBAL VALUE CHAIN GLOBALIZATION ECONOMIC UPGRADING STANDARDS POLICY The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteristics matter for economic upgrading in global value chains. This paper uses two panel data sets of developing and industrialized countries at the sectoral level to relate global value chain participation as a buyer and seller to domestic value added. These are combined with a wide range of policy measures at the country level that can play a role in economic upgrading through global value chains, by targeting global value chain integration or the quality and conditions of input and output factors. First, the study finds that global value chain integration increases domestic value added, especially on the selling side, which holds across all income levels. Second, the results highlight the importance of policy for economic upgrading through global value chain integration. Although the study cannot claim causal evidence, all the assessed policy areas are consistently shown to mediate the effects of global value chains and magnify the gains for domestic value added. Third, a detailed analysis shows that several policy areas mediate the gains from global value chains more through integration as a seller. Finally, the study observes that many of the results are driven by high- and upper-middle-income countries. 2017-04-12T21:29:57Z 2017-04-12T21:29:57Z 2017-03 Working Paper http://documents.worldbank.org/curated/en/567861489688859864/Economic-upgrading-through-global-value-chain-participation-which-policies-increase-the-value-added-gains http://hdl.handle.net/10986/26348 English en_US Policy Research Working Paper;No. 8007 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	GLOBAL VALUE CHAIN GLOBALIZATION ECONOMIC UPGRADING STANDARDS POLICY
spellingShingle	GLOBAL VALUE CHAIN GLOBALIZATION ECONOMIC UPGRADING STANDARDS POLICY Kummritz, Victor Taglioni, Daria Winkler, Deborah Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
relation	Policy Research Working Paper;No. 8007
description	The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteristics matter for economic upgrading in global value chains. This paper uses two panel data sets of developing and industrialized countries at the sectoral level to relate global value chain participation as a buyer and seller to domestic value added. These are combined with a wide range of policy measures at the country level that can play a role in economic upgrading through global value chains, by targeting global value chain integration or the quality and conditions of input and output factors. First, the study finds that global value chain integration increases domestic value added, especially on the selling side, which holds across all income levels. Second, the results highlight the importance of policy for economic upgrading through global value chain integration. Although the study cannot claim causal evidence, all the assessed policy areas are consistently shown to mediate the effects of global value chains and magnify the gains for domestic value added. Third, a detailed analysis shows that several policy areas mediate the gains from global value chains more through integration as a seller. Finally, the study observes that many of the results are driven by high- and upper-middle-income countries.
format	Working Paper
author	Kummritz, Victor Taglioni, Daria Winkler, Deborah
author_facet	Kummritz, Victor Taglioni, Daria Winkler, Deborah
author_sort	Kummritz, Victor
title	Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
title_short	Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
title_full	Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
title_fullStr	Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
title_full_unstemmed	Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?
title_sort	economic upgrading through global value chain participation : which policies increase the value added gains?
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/567861489688859864/Economic-upgrading-through-global-value-chain-participation-which-policies-increase-the-value-added-gains http://hdl.handle.net/10986/26348
_version_	1764461758813044736

Economic Upgrading through Global Value Chain Participation : Which Policies Increase the Value Added Gains?

Similar Items