World Economy as Global Value Chains Network

379
DOI: 10.20542/0131-2227-2015-3-5-17

V. Kondrat’ev, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23 Profsoyuznaya Str., Moscow, 117997, Russian Federation (v.b.kondr@imemo.ru).

Abstract. World trade and production are increasingly structured around “global value chains” (GVCs). A value chain identifies the full range of activities that firms undertake to bring a product or a service from its conception to its end use by final consumers. Technological progress, cost, access to resources and markets and trade policy reforms have facilitated the geographical fragmentation of production processes across the globe according to the comparative advantage of the locations. This international fragmentation of production is a powerful source of increased efficiency and firm competitiveness. Today, more than half of world manufactured imports are intermediate goods (primary goods, parts and components, semi-finished products), and more than 70% of world services imports are intermediate services. The emergence of GVCs during the last two decades has implications in many areas, including trade, investment and industrial development. Some of these implications have been explored in recent OECD work but the empirical evidence on GVCs remains limited. The last few years have witnessed a growing number of case studies on the globally integrated value chains at the product level, but such analyses only depict the situation for a specific product. The main objective of the article is to provide more and better evidence allowing to examine the position of countries within international production networks. The author deals with quantitative indicators that give a more accurate picture of the integration and position of countries in GVCs. A detailed assessment of global value chains is provided in six industries: agriculture and food products, chemicals, electrical and computing machinery, motor vehicles, business services, financial services.

Keywords: global value chain, trade policy, vertical integration, fragmentation of production, regional organization


Registered in System SCIENCE INDEX

For citation:
Kondratev V. World Economy as Global Value Chains Network. World Eonomy and International Relations, 2015, no. 3, pp. 5-17. https://doi.org/10.20542/0131-2227-2015-3-5-17



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 4
Topical Themes of the Issue:
  • Financial Contagion Propagation in Europe under the Impact of Global Shocks
  • Regional Powers on the African Continent: Trends and Prospects
  • Investment Activity of the PRC in the Kyrgyz Republic
  • “Land Grabbing” Concept: Global and National Aspects
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.