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News


Global Value Chains

Participation in global value chains (GVCs), the international fragmentation of production, can lead to increased job creation and economic growth. In order to reap the gains from value chain participation, countries must put in place the right kind of trade and investment policies. The World Bank Group is helping developing countries catch the GVC wave and realize the benefits GVCs can deliver.


CONTEXT

What are GVCs?

  • Companies used to make things primarily in one country. That has all changed. Today, a single finished product often results from manufacturing and assembly in multiple countries, with each step in the process adding value to the end product.
  • Through GVCs, countries trade more than products; they trade know-how, and make things together. Imports of goods and services matter as much as exports to successful GVCs.
  • GVCs integrate the know-how of lead firms and suppliers of key components along stages of production and in multiple offshore locations. The international, inter-firm flow of know-how is the key distinguishing feature of GVCs.
  • How countries engage with GVCs determines how much they benefit from them.
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Why are GVCs important for growth?

Are developing countries part of the new GVC paradigm?

STRATEGY

How does the World Bank Group help countries seize GVC opportunities?

What can developing countries do to optimize participation in GVCs?

What role does the World Bank Group’s The Macroeconomics, Trade and Investment Global Practice play?

Source: http://www.worldbank.org/