Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. This book examines whether there is still a path to development through GVCs and trade.

Table of Contents

• Foreword
• Preface
• Acknowledgments
• Abbreviations
• Overview
• Global value chains: What are they?
• The new face of trade
• Drivers of participation
• What are the effects of GVCs?
• Consequences for development
• Macroeconomic implications
• Impact on the environment
• Technological change
• What domestic policies facilitate fruitful participation?
• Policies to enhance participation
• Policies for inclusion and sustainability
• How can international cooperation help?
• Cooperation on trade
• Cooperation beyond trade
• Appendix A: Databases used in this Report
• Appendix B: Glossary