Washington, DC: World Bank eBooks· 2019
World Development Report 2020: Trading for Development in the Age of Global Value Chains
- 1,029citations
- 2019year
Short summary
Global value chains (GVCs) drove trade growth and economic convergence since 1990, accounting for nearly half of global trade, but have stalled since 2008 due to new technologies and geopolitical conflicts.
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Key points
- GVCs powered international trade growth and economic convergence after 1990, now representing nearly 50% of global trade.
- Trade and GVC expansion have stalled since the 2008 global financial crisis.
- Emerging threats include new technologies potentially reducing labor demand and geopolitical conflicts leading to GVC fragmentation.
- Continued development through GVCs is possible with deeper reforms in developing countries, open policies in industrial nations, and revived multilateral cooperation.
AI-generated from the title and abstract; the full text is not read.
Abstract
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. New technologies could draw production closer to the consumer and reduce the demand for labor. And conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. This book examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
The authors' abstract, as published at the source. Washington, DC: World Bank eBooks, 2019 · DOI ↗
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Field: General Economics, Econometrics and Finance
General Economics, Econometrics and FinanceEconomics, Econometrics and Finance