The Integration of Global Value Chain in the EU: Stylized Facts and Drivers

IMF Working Papers, January 9, 2026

Source details

Canonical URL: The Integration of Global Value Chain in the EU: Stylized Facts and Drivers

Authors: Younghun Shim, Iglika Vassileva, Mengxue Wang
Publication date: January 9, 2026
Series: Working Paper No. 2026/002
Issue: 002; Volume: 2026; Pages: 36
DOI: https://doi.org/10.5089/9798229035057.001
Stock No: WPIEA2026002
ISBN: 9798229035057
ISSN: 1018-5941
Methodology: Analysis of EU global value-chain (GVC) integration using machine learning models; case studies of Portugal and Belgium.

GVC participation appears to boost productivity and technology upgrading.
GVC participation also brings concentration risks in the current environment.
Results indicate the following as key drivers of GVC integration:
- labor cost
- labor productivity
- human capital
Additional supportive factors identified:
- infrastructure
- manufacturing base
- governance quality
Case study outcomes:
- Portugal remains downstream, constrained by low high-tech intensity.
- Belgium is highly integrated but exposed to sectoral shocks.

Strengthen the EU single market to bolster resilience while preserving benefits of openness.
Advance capital-market integration across the EU.
Encourage individual countries’ investment in:
- skills
- innovation
- diversification

Subject: Economic sectors; Exports; Global value chains; Globalization; International trade; Manufacturing
Keywords: Backward Linkages; EU single market; Europe; Export; Exports; Forward Linkages; Global; Global Value Chain Integration; Global value chains; gvc driver; gvc integration; gvc participation; IMF working papers; Machine Learning Methods; Manufacturing

IMF Working Papers. The Integration of Global Value Chain in the EU: Stylized Facts and Drivers (Working Paper No. 2026/002), January 9, 2026.