{
  "title": "Global Value Chains: What are the Benefits and Why Do Countries Participate?",
  "publication": "IMF Working Papers, January 18, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2019/01/18/global-value-chains-what-are-the-benefits-and-why-do-countries-participate-46505",
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  "summary": "Over the last two decades, world trade and production have become increasingly organized around global value chains (GVC). Recent theoretical work has shown that countries can benefit from participation in GVCs through multiple channels.",
  "sections": [
    {
      "heading": "Summary and scope",
      "content": "- Over the last two decades, world trade and production have become increasingly organized around global value chains (GVC).\n- The study uses the Eora MRIO database to compute different measures of GVC participation for 189 countries and to illustrate global patterns of supply chains and their evolution over time.\n- The paper aims to assess empirical importance of supply chains and channels through which GVC participation affects countries."
    },
    {
      "heading": "Empirical approach and data",
      "content": "- Data source: Eora MRIO database.\n- Coverage: 189 countries.\n- Focus: measures of GVC participation, global patterns, evolution over time, and econometric analysis linking GVC-related trade to income per capita and productivity."
    },
    {
      "heading": "Main findings",
      "content": "- GVC-related trade, rather than conventional trade, has a positive impact on income per capita and productivity.\n- There is large heterogeneity in gains from GVC participation; gains appear more significant for upper-middle and high-income countries.\n- “Moving up” to more high-tech sectors while participating in major supply chains does take place but is not universal, suggesting other factors matter.\n- The study confirms findings from the standard gravity literature for GVC trade."
    },
    {
      "heading": "Determinants of GVC participation",
      "content": "- Institutional features are highlighted as key determinants of GVC participation:\n  - Contract enforcement.\n  - Quality of infrastructure."
    },
    {
      "heading": "Policy-relevant implications (implicit from findings)",
      "content": "- Strengthening institutional features such as contract enforcement can support greater GVC participation.\n- Improving infrastructure quality can facilitate integration into GVCs.\n- Policies aimed at enabling movement into higher-technology sectors may be necessary but not sufficient, given that upward movement is not universal and other factors matter."
    },
    {
      "heading": "Metadata and publication identifiers",
      "content": "- Authors: Faezeh Raei, Anna Ignatenko\n- Date: January 18, 2019\n- Pages: 31\n- Series: Working Paper No. 2019/018\n- Issue: 018\n- DOI: https://doi.org/10.5089/9781484392928.001\n- ISBN: 9781484392928\n- ISSN: 1018-5941\n\nSource: IMF Working Paper \"Global Value Chains: What are the Benefits and Why Do Countries Participate?\"\n\n---\n\n Content in this bundle\n\n- Global Value Chains: What are the Benefits and Why Do Countries Participate?, WP/19/18, January 2019\n  - Global Value Chains: What are the Benefits and Why Do Countries Participate?, WP/19/18, January 2019 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Global Value Chains: What are the Benefits and Why Do Countries Participate?, WP/19/18, January 2019 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/01/18/global-value-chains-what-are-the-benefits-and-why-do-countries-participate-46505"
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    "Authors: Faezeh Raei, Anna Ignatenko",
    "Published: January 18, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484392928.001",
    "Over the last two decades, world trade and production have become increasingly organized around global value chains (GVC).",
    "The study uses the Eora MRIO database to compute different measures of GVC participation for 189 countries and to illustrate global patterns of supply chains and their evolution over time.",
    "The paper aims to assess empirical importance of supply chains and channels through which GVC participation affects countries.",
    "Data source: Eora MRIO database.",
    "Coverage: 189 countries.",
    "Focus: measures of GVC participation, global patterns, evolution over time, and econometric analysis linking GVC-related trade to income per capita and productivity.",
    "GVC-related trade, rather than conventional trade, has a positive impact on income per capita and productivity.",
    "There is large heterogeneity in gains from GVC participation; gains appear more significant for upper-middle and high-income countries.",
    "“Moving up” to more high-tech sectors while participating in major supply chains does take place but is not universal, suggesting other factors matter.",
    "The study confirms findings from the standard gravity literature for GVC trade.",
    "Institutional features are highlighted as key determinants of GVC participation:",
    "Strengthening institutional features such as contract enforcement can support greater GVC participation.",
    "Improving infrastructure quality can facilitate integration into GVCs.",
    "Policies aimed at enabling movement into higher-technology sectors may be necessary but not sufficient, given that upward movement is not universal and other factors matter.",
    "Authors: Faezeh Raei, Anna Ignatenko",
    "Date: January 18, 2019",
    "Pages: 31",
    "Series: Working Paper No. 2019/018",
    "Issue: 018",
    "DOI: https://doi.org/10.5089/9781484392928.001",
    "ISBN: 9781484392928",
    "ISSN: 1018-5941",
    "**Global Value Chains: What are the Benefits and Why Do Countries Participate?, WP/19/18, January 2019**"
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