Global Value Chains (GVCs)
International production, trade and investments are increasingly organised within so-called global value chains (GVCs) where the different stages of the production process are located across different countries. Globalisation motivates companies to restructure their operations internationally through outsourcing and offshoring of activities.
Firms try to optimise their production processes by locating the various stages across different sites. The past decades have witnessed a strong trend towards the international dispersion of value chain activities such as design, production, marketing, distribution, etc.
This emergence of GVCs challenges conventional wisdom on how we look at economic globalisation and in particular, the policies that we develop around it.
- February 2021: Global value chains: Efficiency and risks in the context of COVID-19
- September 2020: Returns to intangible capital in global value chains: New evidence on trends and policy determinants
- June 2020: COVID-19 and global value chains: Policy options to build more resilient production networks
- February 2020: Measuring employment in global value chains
- November 2019: Global value chains and the shipbuilding industry
- July 2019: Release of AMNE data
- March 2019: Multinational enterprises in domestic value chains
- November 2018: Trade policy implications of global value chains
- June 2018: GVC centrality and productivity: Are hubs key to firm performance?
- March 2018: Multinational enterprises and global value chains: New insights on the trade-investment nexus
- March 2018: Multinational production and trade in services
- February 2018: Multinational enterprises and global value chains: the analytical AMNE database
- October 2017: Investing in innovation and skills: Thriving in global value chains
- September 2017: Global Value Chains - Business as usual or a "new normal"? - STI policy note | full paper
- June 2017: The changing nature of GVCs: Are central hubs key for productivity? background paper for Global Forum on Produtivity, Budapest
- June 2017: Skills and global value chains: A characterisation
- May 2017: Having the right mix: The role of skill bundles for comparative advantage and industry performance in GVCs
- April 2017: The links between global value chains and global innovation networks: An exploration
- December 2016: Where to locate innovative activities? Does co-location matter? - STI policy note | full paper
- February 2016: Routine jobs, employment and technological innovation in global value chains
The OECD provides a broad range of work to help policy makers understand the effects of GVCs on a number of different topics:
The goods and services we buy are composed of inputs from various countries around the world. However, the flows of goods and services within these global production chains are not always reflected in conventional measures of international trade. The joint OECD – WTO Trade in Value-Added (TiVA) initiative addresses this issue by considering the value added by each country in the production of goods and services that are consumed worldwide. TiVA indicators are designed to better inform policy makers by providing new insights into the commercial relations between nations.
Global value chains have become a dominant feature of world trade, encompassing developing, emerging, and developed economies. The whole process of producing goods, from raw materials to finished products, is increasingly carried out wherever the necessary skills and materials are available at competitive cost and quality. Similarly, trade in services is essential for the efficient functioning of GVCs, not only because services link activities across countries but also because they help companies to increase the value of their products. This fragmentation highlights the importance of an ambitious complementary policy agenda to leverage engagement in GVCs into more inclusive growth and employment and the OECD is currently undertaking comprehensive statistical and analytical work that aims to shed light on the scale, nature and consequences of international production sharing.
This OECD initiative is a platform for policy dialogue and knowledge sharing between OECD and non-OECD countries. It aims at improving evidence and identifying policy guidelines to promote development by fostering participation and upgrading in global value chains.