Global Value Chains: Effects for Integrating Economy

DOI: 10.20542/0131-2227-2017-61-4-16-25
S. Lukyanov (,
State University of Management, 99, Ryazanskii Prosp., Moscow, 109542, Russian Federation;
Ural Federal University, 19, Prosp. Mira, Ekaterinburg, 620002, Russian Federation;
St. Petersburg State University, 62, Chaikovskogo Str., Saint-Petersburg, Russian Federation;
I. Drapkin (
Ural Federal University, 19, Prosp. Mira, Ekaterinburg, 620002, Russian Federation 


Abstract. The paper is devoted to consideration of the effects for the economy integrating into the global value chains (GVCs). The main trends in the development of the global value chains in the modern economy are identified. The concrete indicators that may help to measure the degree of integration of the national economy into the GVCs are singled out and deliberated in details. The authors propose a classification of the GVCs-related effects for an integrating economy. In particular, they outline direct and indirect effects, vertical and horizontal effects, as well as upstream, downstream and feedback inter-industry effects. A conclusion is made that the sign of these effects for an integrating economy basically depends on the form of production fragmentation (international outsourcing, horizontal FDI, vertical FDI or offshoring). The factors that influence the sign and the size of the effects in the integrating economy are pointed out. The authors differentiate the factors that influence intra-industry (horizontal) and inter-industry (vertical) effects. The market structure of the industries, the level of the technological gap between international and national companies, the level of import substitution within the investment project and the level of the export orientation of the project comprise the former group of factors. The level of the intra-industry effect, the level of local sourcing, the remoteness of the headquarter country and the level of the technological gap between international company and national companies in the vertically linked industry represent the latter group of factors. In conclusion is stressed that the Russia needs to further deepen its integration into the global value chains in order to technologically develop the national economy. 

Keywords: global value chains, production fragmentation, spillover effects, vertical FDI, horizontal FDI, international outsourcing, offshoring 


1. World Trade Organization. Annual Report. Geneva, World Trade Organization, 1998. 172 p. Available at: (accessed 31.09.2016).

2. Grossman G., Helpman E. Outsourcing in a Global Economy. Review of Economic Studies, 2005, Jan., vol. 72, no. 250, pp. 135-159.

3. Sturgeon T., Memedovic O. Mapping Global Value Chains: Intermediate Goods Trade and Structural Change in the World Economy. UNIDO Working Paper, 2011, no. 5, 52 .

4. Nicita A., Ognivtsev V., Shiritori M. Global Supply Chains: Trade and Economic Policies for Developing Countries. Geneva, UNCTAD, 2011. 26 p.

5. Kondrat’ev V. Mirovaya ekonomika kak sistema globalnykh tsepochek stoimosti [World Economy as Global Value Chain’s Network]. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2015, no. 3, pp. 5-17.

6. Interconnected Economies: Benefiting from Global Value Chains. Paris, OECD, 2013. 54 p. Available at: (accessed 31.09.2016).

7. Miroudot S., Lanz R., Ragoussis A. Trade in Intermediate Goods and Services. OECD Trade Policy Papers, 2009, no. 93, 66 p.

8. World Investment Report. Non-equity Modes of International Production and Development. Geneva, UNCTAD, 2011. 226 p. Available at: (accessed 31.09.2016).

9. Matouschek N., Venables A. Evaluating Investment Projects in the Presence of Sectoral Linkages. Economics of Transition, 2005, vol. 13, no. 4, pp. 573-603.

10. Dixit A., Stiglitz J. Monopolistic Competition and Optimum Product Diversity. American Economic Review, 1977, vol. 67, pp. 297-308.

11. Findlay R. Some Aspects of Technology Transfer and Direct Foreign Investment. American Economic Review, 1978, May, vol. 682, pp. 275-279.

12. Proença I. Fontoura M., Crespo N. Productivity Spillovers from Multinational Corporations in the Portuguese Case: Evidence from a Short Time Period Panel Data. Instituto Superior de Economia e Gestão – DE Working Papers, no. 6-2002/DE/CEDIN, 2002. 20 p.

13. Rodriguez-Clare A. Multinationals, Linkages, and Economic Development. American Economic Review, 1996, no. 4, vol. 86, pp. 852-873. 

Registered in System SCIENCE INDEX

For citation:
Lukyanov S., Drapkin I. Global Value Chains: Effects for Integrating Economy. World Eonomy and International Relations, 2017, vol. 61, no. 4, pp. 16-25.

Comments (0)

No comments

Add comment






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. 7
Topical Themes of the Issue:
  • The Supporting Structure of Global Security
  • Institutional Features of the Fourth Energy Transition
  • The Evolution of Modern German Christian Democracy
  • The Monarchies of the Persian Gulf and Central Asia
Submit an Article
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.