Working Paper: CEPR ID: DP14191
Authors: Pol Antras
Abstract: I offer an overview of some key conceptual aspects associated with the rise of global value chains (GVCs). I outline a series of alternative interpretations and definitions of what the rise of GVCs entails, and I trace the implications of these alternative conceptualizations for the measurement of the phenomenon, as well as for elucidating the key determinants and implications of GVC participation, both at the country level and at the firm level. In the process, I offer some speculative thoughts about the future of GVCs in light of the advent of an array of new technologies.
Keywords: global value chains; GVCs; international trade; economic development
JEL Codes: D5; F1; F2; F4; F6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Rise of GVCs (F12) | Finer international division of labor (F29) |
| Finer international division of labor (F29) | Greater income gains from trade (F11) |
| GVC participation (F63) | Firm-level productivity (D21) |
| GVC participation (F63) | Income inequality within countries (D31) |
| GVC participation (F63) | Wage inequality (J31) |
| GVC participation (F63) | Access to lower-cost inputs (L11) |
| GVC participation (F63) | Increased scale of operations (F12) |