The Capabilities Driving Participation in Global Value Chains

Pathikonda, Vilas ; Farole, Thomas

World Bank, Washington, DC

关键词: global value chains;    international trade;    comparative advantage;    competitiveness;    development;   

DOI  :  10.1596/1813-9450-7804
RP-ID  :  WPS7804

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Global value chains have altered thenature of global trade and offer significant opportunitiesfor developing countries to expand exports, accesstechnology, and raise productivity. Policy makers rightlyseek to understand what it takes to participate in globalvalue chains. In practice, this means understanding what ittakes to attract lead firms and upgrade to highervalue-added activities. Recent literature has pointed to arange of underlying characteristics that may driveparticipation in global value chains. Using a modifiedfactor-content methodology, this paper shows that proximityto markets, efficient logistics, and strength ofinstitutions are among the most important capabilities.However, the paper also shows that each sector has a uniquemix of capability requirements. Fixed structuralcharacteristics limit the range of sectoral possibilitiesfor a given country, but, by reducing policy-related gaps, acountry may be able to increase its competitiveness forparticipating in global value chains. The paper applies themethodology to Southern African Customs Union countries, anddemonstrates that, by filling gaps in underlyingcapabilities, these countries could increase participationin certain global value chain sectors.