Taglioni, DariaWinkler, Deborah2014-05-292014-05-292014-05https://hdl.handle.net/10986/18421Global value chains (GVCs) are playing an increasingly important role in business strategies, which has profoundly changed international trade and development paradigms. GVCs now represent a new path for development by helping developing countries accelerate industrialization and the servicification of the economy. From a firm perspective, production in the context of GVCs highlights the importance of being able to seamlessly connect factories across borders, as well as protect assets such as intellectual property. From the policy maker perspective, the focus is on shifting and improving access to resources while also advancing development goals, and also on the question of whether entry into GVCs delivers labor-market-enhancing outcomes for workers at home, as well as social upgrading. GVCs can lead to development, but, at the country level, constraints such as the supply of various types of labor and skills and inadequate absorptive capacity remain. GVCs can create new opportunities on the labor demand side, but supply and demand cannot meet if the supply is missing. This potential gap illustrates the importance of embedding national GVC policies into a broader portfolio of policies aimed at upgrading skills, physical and regulatory infrastructure, and enhancing social cohesion.en-USCC BY 3.0 IGOAGRICULTUREASSETSAUTOMOBILEAVERAGE PRODUCTIVITYBACKBONEBIDBUSINESS FUNCTIONSBUSINESS MODELSBUSINESS RELATIONSHIPSBUSINESS STRATEGIESBUYERSCAPABILITYCAPACITY BUILDINGCITIESCOLLABORATIONCOLLECTIVE BARGAININGCOMMUNICATION TECHNOLOGYCOMPETITIVE ADVANTAGECOMPETITIVENESSCONNECTIVITYCONTRACT DISPUTESCUSTOMER BASECUSTOMSDEMOCRACYDEVELOPING COUNTRIESDOMESTIC MARKETDOMESTIC MARKETSDRIVERSE-COMMERCEECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC CONSTRAINTSECONOMIC DEVELOPMENTECONOMIC INTEGRATIONECONOMICSELECTRONIC PLATFORMELECTRONIC TRANSFERSELECTRONICS ENGINEERSEMPLOYMENTENTRY POINTEQUITY STAKEEQUITY STAKESEXPENDITURESEXPORT BARRIERSEXPORTSEXTERNALITIESFOREIGN DIRECT INVESTMENTFOREIGN EQUITYFOREIGN EXCHANGEFOREIGN INVESTMENTFOREIGN INVESTORSGLOBAL ECONOMYGLOBAL SUPPLY CHAINSGLOBALIZATIONHOST COUNTRYHOST ECONOMYHUMAN CAPITALIMPORT BARRIERSINCOMEINCOMPLETE CONTRACTINGINCOMPLETE CONTRACTSINDUSTRIAL DEVELOPMENTINDUSTRIALIZATIONINNOVATIONINTANGIBLEINTANGIBLE ASSETSINTELLECTUAL PROPERTYINTEREST RATEINTERNATIONAL DEVELOPMENTINTERNATIONAL ECONOMICSINTERNATIONAL MARKETSINTERNATIONAL TRADEINTERNATIONAL TRANSACTIONSINVESTMENT DECISIONINVESTOR PROTECTIONJOINT VENTUREJOINT VENTURESLABOR COSTSLABOR DEMANDLABOR MARKETLABOR MARKETSLABOR POLICIESLABOR PRODUCTIVITYLABOR SUPPLYLABOR TURNOVERLABOURLANDOWNERSLEGAL SYSTEMSLICENSESLIVING STANDARDSLOCAL ECONOMYLOCALIZATIONMANUFACTURINGMARKET FAILURESMARKET SEGMENTSMARKETINGMARKETING STRATEGIESMATERIALMEDIUM ENTERPRISESNETWORK · TECHNOLOGYNETWORKSNICHE MARKETOUTSOURCINGPATENTSPOLICY FRAMEWORKPOLITICAL ECONOMYPORTFOLIOPREFERENTIAL MARKET ACCESSPRIVATE PARTNERSHIPSPRODUCTION PROCESSESPRODUCTIVITYPROGRAMSPROPERTY RIGHTSPUBLIC INVESTMENTREGULATORY INFRASTRUCTURERELIABILITYRESULTSAFETYSEARCHSITESSKILLED LABORSOCIAL COHESIONSUPPLIERSSUPPLY CHAINSUPPLY NETWORKTAXTAXONOMYTECHNICAL ASSISTANCETECHNICAL COOPERATIONTECHNOLOGY TRANSFERSTELECOMMUNICATIONSTIMELY ACCESSTRADE BARRIERSTRADE LIBERALIZATIONTRADE UNIONSTRADINGTRAINING INITIATIVESTRAINING INSTITUTESTRANSMISSIONVALUE CHAINVALUE CHAINSWAGESWEBWEB SITEWORLD TRADE10.1596/18421