Global value chains (GVCs) break up the production process so that different steps can be carried out in different countries. Many smart phones and televisions, for example, are designed in the United States or Japan. They have sophisticated inputs, such as semiconductors and processors, which are produced in Korea or Taiwan Province of China. And they are assembled in China. They are then marketed and receive after-sale servicing in Europe and the United States. These complex global production arrangements have transformed the nature of trade. But their complexity has also created difficulties in understanding trade and in formulating policies that allow firms and governments to capitalize on GVCs and to mitigate negative side effects.
This publication provides a detailed map of GVCs, enabling policymakers to have a better understanding of the ongoing development and evolution of GVCs and the relationship between economic development and GVC participation. Copublished with the World Bank, OECD, IDE-JETRO, and the Research Center for Global Value Chain Research. The joint research undertaken by these organizations aims to synthesize the parties’ knowledge and expertise on GVC studies and to contribute to better policymaking by the international community.