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

_IMF Working Papers, January 9, 2026_

## Source details

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## Bibliographic details
- Authors: Younghun Shim, Iglika Vassileva, Mengxue Wang
- Published: January 9, 2026
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798229035057.001

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### Overview and scope
- 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.

### Key findings on GVC participation and outcomes
- 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.

### Policy implications and recommendations
- 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 classification and keywords
- 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.*

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_Source: https://www.imf.org/en/publications/wp/issues/2026/01/09/the-integration-of-global-value-chain-in-the-eu-stylized-facts-and-drivers-573063_