Person:
Taglioni, Daria

Trade and International Integration, Development Research Group

Fields of Specialization

International economics, Trade

ORCID

0000-0003-4973-2053

External Links

RePEc
Blogs
SSRN

Departments

Trade and International Integration, Development Research Group

Last updated: September 13, 2024

Biography

Daria Taglioni is Research Manager, Trade and International Integration, Development Research Group. She joined the World Bank Group in 2011 as Senior Trade Economist in the International Trade Department of the Poverty Reduction and Economic Management Network (PREM). Since then, she has held various positions and roles, including Team-Task Lead for the World Development Report 2020, Principal Economist in the International Finance Corporation, and World Bank’s Global Lead on Global Value Chains. Previously, she worked as Senior Economist at the European Central Bank (ECB) and as Economist at the Organisation for Economic Cooperation and Development (OECD). She has published in the American Economic Review, Journal of International Economics, and other scholarly journals. Her work has been featured in international media outlet such as the New York Times and Forbes. She authored various books on international trade. She is Italian and holds a PhD in International Economics from the Graduate Institute, Geneva.

Full item page

Publication Search Results

Now showing 1 - 10 of 20

The US-China Trade War and Global Reallocations
(World Bank, Washington, DC, 2022-01) Fajgelbaum, Pablo; Goldberg, Pinelopi; Kennedy, Patrick; Khandelwal, Amit; Taglioni, Daria
This paper studies global trade responses to the US-China trade war. It estimates the tariff impacts on product-level exports to the US, China, and rest of world. On average, countries decreased exports to China and increased exports to the US and rest of world. Most countries export products that complement the US and substitute China, and a subset operate along downward-sloping supplies. Heterogeneity in responses, rather than specialization, drives export variation across countries. Surprisingly, global trade increased in the products targeted by tariffs. Thus, despite ending the trend towards tariff reductions, the trade war did not halt global trade growth.
Massive Modularity: Understanding Industry Organization in the Digital Age — The Case of Mobile Phone Handsets
(World Bank, Washington, DC, 2022-09) Thun, Eric; Taglioni, Daria; Sturgeon, Timothy; Dallas, Mark P.
Digitization is transforming the organization and geography of industries. Once digitized, information can be generated, collected, stored, monitored, analyzed, and processed in ways not previously possible, and when common standards are used as modular interfaces, data can be transferred and put to use with greater ease across organizations and geographic space. An important effect of digitization on industrial organization is the emergence of global-scale modular ecosystems associated with specific classes of products, applications, and technologies. The modules and sub-systems in these ecosystems can—albeit with significant engineering effort, because they are complex—be reused, connected, and layered to drive innovation and deliver products and services with immense complexity at scale. The nuances of this transformation have not been lost on the field of technology management and innovation. The primary focus of this literature has been on how to capture value in modular ecosystems, mainly by focusing on how to companies can influence or leverage industry architectures and “win” in an era of digital platforms. This paper makes three contributions to these literatures, as well as to literatures on global value chains (GVCs), industry standards, and industrial policy in the post- “Washington Consensus” era: 1) it develops a broader view of modular and platform ecosystems than has been advanced so far, highlighting the overlapping and layered nature of digital industry ecosystems; 2) it focuses on the multiplicity of standards that bind modular ecosystems together; and 3) it draws attention to the geographic and geopolitical implications of what it calls Massive Modular Ecosystems (MMEs). The case study of the mobile phone handset industry reveals three paradoxes associated with MMEs: 1) they allow for extremely complex products to be produced at scale, unlike more traditional industries; 2) they simultaneously feature high degrees of market concentration at the level of complex sub-systems and components, and market fragmentation at the level of the industry overall and at the level of complementors; and 3) they are concentrated in geographic clusters, but because MMEs integrate work carried out in many specialized clusters in many countries, the system as a whole is geographically dispersed. This leads to a fourth, policy-related paradox: MMEs generate strategic and geopolitical pressures for decoupling when placed under stress, but the same set of circumstances also creates pressures for maintaining the business relationships and institutions that have come to underpin global integration.
Valuing Services in Trade : A Toolkit for Competitiveness Diagnostics
(World Bank, Washington, DC, 2014) Sáez, Sebastián; Taglioni, Daria; Zavacka, Veronika; Hollweg, Claire H.
The Service Trade Competitiveness Diagnostic (STDC) Toolkit is part of a larger agenda of trade competitiveness work developed by the World Bank’s International Trade Unit in recent years. Services are a key input in countries’ trade competitiveness, as well as a new source of trade diversification, making it critical to understand what factors and main constraints matter most for services competitiveness. The Toolkit provides a framework, guidelines, and set of practical tools to conduct a thorough analysis and diagnostic of trade competitiveness in the services sector with a methodology that sheds light on a country’s ability both to export services and improve its export performance through policy change. This Toolkit is designed to be used in a modular way. Either a full country diagnostic can be undertaken or various parts of the toolkit can be used to address specific questions of interest, whether they pertain to existing services performance, the potential for expansion and growth in services trade, or policy options to increase competitiveness in services trade. The output of an STCD can be used to assess either the overall performance of a country’s services sector or the performance of individual sub-sectors. This Toolkit complements the analytical framework for trade in goods provided by the Trade Competitiveness Diagnostic Toolkit (World Bank, 2012), and allows policymakers and experts in developing countries to better integrate services into their overall trade strategies. In addition, it will also be of interest to international organizations and development practitioners in both policymaking institutions and academia.
Economic Consequences of Trade and Global Value Chain Integration: A Measurement Perspective
(World Bank, Washington, DC, 2021-09) Borin, Alessandro; Mancini, Michele; Taglioni, Daria
This paper presents a new approach to measuring Global Value Chain (GVC) participation, essential for informed policy-making. It introduces a tripartite classification of GVC involvement—backward, forward, and two-sided— extending beyond trade to include production data. GVCs, vital for global economic growth, are networks through which companies internationally produce goods and services. The advanced framework accurately assesses how different combinations of domestic output, trade, and GVC integration correlate with growth and output stability. The paper finds that traditional trade-based GVC metrics significantly underestimate global GVC activity and misrepresent participation in key sectors like services and upstream manufacturing. They also exaggerate risks during critical stages like early trade liberalization in large economies. Additionally, it shows that traditional backward-forward classifications overestimate backward linkages. The new metrics, applied to established models, effectively predict trade disruption impacts, indicating that GVC participation increases exposure to external shocks but also enhances overall output stability by mitigating local shocks. Furthermore, GVC participation is a key driver of the positive trade-income growth correlation. The complete dataset of these new measures is available on the World Bank’s WITS Platform, and it is regularly updated, providing a key resource for GVC analysis.
Did the 2022 global energy crisis accelerate the diffusion of low-carbon technologies?
(Washington, DC: World Bank, 2024-05-20) Bastos, Paulo; Greenspon, Jacob; Stapleton, Katherine; Taglioni, Daria
This paper develops measures of the diffusion of a comprehensive range of low-carbon technologies in 35 countries from 2019 to 2022 using text analysis of job postings and earnings calls transcripts. It documents a rapid acceleration in the diffusion of low-carbon technologies in 2022, driven by technologies related to renewable energy, vehicles, thermal performance, and electrical generation and storage. Rapid growth occurred in three quarters of the countries studied and 228 of 300 subnational regions, although was fastest in Europe. Hiring for roles related to low-carbon technologies in these 35 countries doubled between 2019 and the end of 2022, for example. It studies the role of the global energy crisis in triggering this accelerated technology diffusion, focusing on 16 mainly advanced economies. It finds that establishments in countries that had a higher pre-crisis dependence on imports of natural gas, and were thus more exposed to the price shock, differentially increased hiring for low-carbon technology related roles from March 2022 onwards. Within more exposed countries, establishments with a higher pre-crisis energy intensity also saw a differential increase in hiring relative to less energy intensive ones.
The Economic Effects of Market Integration in the Western Balkans
(World Bank, Washington, DC, 2023-07-11) Gómez, María DelMar; Zárate, Román D.; Taglioni, Daria
In the Western Balkans, trade and transport policy reforms that reduce waiting time at the border by just three hours are equivalent to removing a value-based tariff of 2 percent. Reform gains are maximized when they are coordinated across economies and implemented jointly: cross-border coordination in the implementation of the package of national single window and other trade facilitation reforms would generate 8 percent higher gains than if each economy were to carry out the reforms autonomously. The impacts of trade reforms and improvements in road infrastructure would be further amplified if Western Balkan economies belonged to the European Union, which would result in an additional 6 percent boost to welfare. Moreover, the accession of Western Balkan economies to the European Union would have positive spillover welfare effects for countries such as Croatia, Bulgaria, Romania, and Hungary, and negligible effects for other EU members.
Inclusive Global Value Chains: Policy Options for Small and Medium Enterprises and Low-Income Countries
(Washington, DC: World Bank, 2016-08-22) Safadi, Raed; Cusolito, Ana Paula; Taglioni, Daria
This report's focus is making global value chains (GVCs) more inclusive. To achieve inclusiveness is by overcoming participation constraints for Small and Medium Enterprises (SMEs) and facilitation access for Low Income Developing Countries (LIDCs). The underlying assumption is that most firms in LIDCs are SMEs. Even larger firms in LIDCs are likely to face similar challenges to SMEs, including a less supportive domestic operating environment and weaker institutions that lead to higher fixed costs and challenges to compete on the international markets. The two major points of this report are (1) participation in GVCs is heterogeneous and uneven, across and within countries, and (2) available data and survey-based evidence suggest that SMEs’ participation in GVCs is mostly taking place through indirect contribution to exports, rather than through exporting directly. The report makes the case that policy action, at the national and multilateral level, can make a difference in achieving more inclusive GVCs through: a holistic approach to reform spanning trade, investment, and domestic policies countries and investments in expanding the statistical base and analysis of GVCs and in sharing knowledge on best practices on enabling policies and programs. The report elaborates on three broad areas of recommendations: (1) establishing a trade and investment action plan for inclusiveness defining clear and achievable objectives on trade and investment policy and identifying the necessary complementary domestic policy actions; (2) complementing trade, investment, and domestic policy actions by providing the needed political leadership and support to enhance collaboration across the sectors, and establishing global platforms for sharing best practices; and (3) providing political support for the establishment of a multi-year plan to expand and upgrade the statistical foundation necessary to increase the capacity of all countries to identify and implement policies that can contribute to stronger, more inclusive and sustainable growth and development, globally.
Vietnam at a Crossroads: Engaging in the Next Generation of Global Value Chains
(Washington, DC: World Bank, 2017-03-07) Smith, Tanya; Hollweg, Claire H.; Taglioni, Daria
Vietnam is at a crossroads. It can grow as an export platform for GVCs, specializing in low value-added assembly functions with industrialization occurring in enclaves with little connection to the broader economy or society; or it can leverage the current wave of growth, enabled and accelerated by its successful participation in GVCs, to diversify and move up the chain into higher value-added functions. Success will require Vietnam’s policymakers to view the processes of development differently, and to take new realities of the global economy more fully into account. The purpose of this volume is to support Vietnam’s path to economic prosperity by identifying policies and targeted interventions that will drive development through leveraging GVC participation that take major shifts in trade policy and rapid technological advances in ICT into account. The volume is based on a compilation of studies completed by World Bank staff and external consultants in 2015 supporting the “Enabling Economic Modernization and Private Sector Development” chapter of the Vietnam 2035 report. The objective of these studies was to diagnose Vietnam’s current participation in GVCs, visualize where Vietnam could be by 2035 in the context of a changing global environment, and identify the policy actions needed to get there. The studies also supported topics related more broadly to export competitiveness, including firm-level productivity, services, and connectivity. It then identifies targeted strategies and policy interventions that will help overcome challenges, minimize risks, and maximize opportunities. Readers will gain a strong understanding of Vietnam’s current and potential engagement with GVCs—and will learn about strategic GVC policy tools that can help developing countries achieve economic prosperity in the context of compressed development.
Making Global Value Chains Work for Development
(Washington, DC: World Bank, 2016-06-06) Taglioni, Daria; Winkler, Deborah
Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access to resources and technology while advancing development goals. However, participating in global value chains does not automatically improve living standards and social conditions in a country. This requires not only improving the quality and quantity of production factors and redressing market failures, but also engineering equitable distributions of opportunities and outcomes - including employment, wages, work conditions, economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development challenges. Following this perspective, Making Global Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it serves as a repository of analytical tools; and it proposes a strategic framework to guide policymakers in identifying the key objectives of GVC participation and in selecting suitable economic strategies to achieve them.
Economic Upgrading through Global Value Chain Participation: Which Policies Increase the Value Added Gains?
(World Bank, Washington, DC, 2017-03) Kummritz, Victor; Taglioni, Daria; Winkler, Deborah
The emergence of global value chains has opened up new ways to achieve development and industrialization. However, new evidence shows that not all countries have gained from participating in global value chains, and that country-specific characteristics matter for economic upgrading in global value chains. This paper uses two panel data sets of developing and industrialized countries at the sectoral level to relate global value chain participation as a buyer and seller to domestic value added. These are combined with a wide range of policy measures at the country level that can play a role in economic upgrading through global value chains, by targeting global value chain integration or the quality and conditions of input and output factors. First, the study finds that global value chain integration increases domestic value added, especially on the selling side, which holds across all income levels. Second, the results highlight the importance of policy for economic upgrading through global value chain integration. Although the study cannot claim causal evidence, all the assessed policy areas are consistently shown to mediate the effects of global value chains and magnify the gains for domestic value added. Third, a detailed analysis shows that several policy areas mediate the gains from global value chains more through integration as a seller. Finally, the study observes that many of the results are driven by high- and upper-middle-income countries.