GVC Participation and Deep Integration in Brazil

Hollweg, Claire H. ; Rocha, Nadia

World Bank, Washington, DC

关键词: GLOBAL VALUE CHAINS;    GRAVITY MODEL;    TRADE AGREEMENT;    DEEP INTEGRATION;    PREFERENTIAL TRADE AGREEMENT;   

DOI  :  10.1596/1813-9450-8646
RP-ID  :  WPS8646

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The production of export goods hasbecome increasingly unbundled, and countries positioning tobecome more integrated in the global economy areincreasingly looking toward global value chains. This paperuses the Organisation for Economic Co-operation andDevelopment/World Trade Organization's Trade inValue Added Database to assess Brazil's currentintegration in global value chains. It uses a structuralgravity model estimated with parts and components to analyzethe scope for Brazil to increase global value chain–relatedtrade. One avenue to raise participation in global valuechains is through (deeper) preferential trade agreements,and to this end the paper characterizes the level ofintegration of Brazil's current preferential tradeagreements. Brazil has witnessed high growth in totaldomestic value added embodied in gross exports since 1995,yet it exhibits lower international engagement in globalvalue chains, but tends to be stronger as a seller than abuyer. Most of the participation on the selling side comesfrom indirect linkages with domestic input sectors, andservices sectors have been important for growing theindirect value added in global value chain–oriented exports.A deep integration agenda focusing not only on bordermeasures, but also on beyond-the-border measures, would helpBrazil to maximize the benefits from participation in globalvalue chains. Other than its natural partners, Brazil shouldintegrate with countries where global value chains aretaking place. New agreements signed by Brazil and Mercosurwith other regional members such as the Pacific Allianceshould also take into consideration provisions such asinvestment, competition policy, and intellectual propertyrights, which are demonstrated to be very important forintegration in global value chains.