Determinants of Global Value Chain Participation: Cross-Country Evidence

This paper is based on empirical evidence from a panel data set covering more than 100 countries over the past three decades

From:
Foreign, Commonwealth & Development Office
Published
26 March 2020
Document Type:
Working Paper
Theme:
Economic Growth
Authors:
Fernandes, A.M, Kee, H.L, Winkler, D.E.

Abstract

The past decades witnessed big changes in international trade with the rise of global value chains. Some countries, such as China, Poland, and Vietnam, rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of participation in global value chains, based on empirical evidence from a panel data set covering more than 100 countries over the past three decades. The evidence shows that factor endowments, geography, political stability, liberal trade policies, foreign direct investment inflows, and domestic industrial capacity are very important in determining participation in global value chains. These factors affect participation in global value chains more than traditional exports.

This is an output of the World Bank’s Strategic Research Program

Citation

Fernandes, Ana Margarida; Kee, Hiau Looi; Winkler, Deborah Elisabeth.(2020). Determinants of Global Value Chain Participation: Cross-Country Evidence. Policy Research working paper;no. WPS 9197 Washington, D.C. : World Bank Group

Determinants of Global Value Chain Participation: Cross-Country Evidence

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Published 26 March 2020
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