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Making global value chains work for development (English)

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.


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    Taglioni,Daria, Winkler,Deborah Elisabeth

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    The World Region,

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    Making global value chains work for development

  • Keywords

    small and medium enterprise;information and communication technology;marginal cost of production;machinery and equipment;domestic value added;global value chain;computer storage device;form of governance;export value;refined petroleum product;foreign direct investment;export processing zone;labor value;economic policy analysis;book value;intellectual property rights;trade in services;quality of infrastructure;privileges and immunity;dynamics of change;business process outsourcing;growth and development;special economic zone;transmission of knowledge;implications for development;trade and competitiveness;implications for policy;flow of good;fragmentation of production;quality and quantity;intermediate imports;equitable distribution;middle-income nation;absorptive capacity;supply chain;International Trade;Labor Market;transmission channel;foreign investor;domestic supplier;analytical tool;local actors;trade system;foreign input;international production;crossing border;gross exports;trade partner;global market;policy option;downstream product;domestic economy;organizing production;Technology Transfer;environmental regulation;environmental sustainability;import substitution;trade flow;power relation;global economy;aerospace industry;skill upgrading;statistical information;international market;social gains;intangible asset;global network;labor standard;country risk;positive spillover;foreign asset;product standard;sustainable way;informed choice;living condition;legal system;business service;policy perspective;contract cost;local trade;integrated system;dynamic knowledge;managerial practice;national strategy;world income;textile mill;fragmented production;strategic framework;open borders;advanced technology;home countries;production cost;trade relationship;partner country;trade network;participation strategy;regulatory infrastructure;survey data;binding constraint;labor demand;local sale;foreign technology;export production;export competitiveness;multinational corporation;european community;equipment manufacturer;comparative advantage;national academy;capitalist development;financial market;peer-reviewed journal;international economics;welfare effect;sell side;imported inputs;interview guide;comparator country;firm-level analysis;enterprise survey;Industrial Policies;black box;home country;conventional wisdom;domestic investor;labor productivity;analytical instruments;engagement strategies;macro data;expanding export;measurement tool;Industrial Policy;bottom-up approach;exchange goods;global chain;policy prescriptions;business school;computer chip;competitiveness reinforcement;logistics performance;labor skills;market failure;social cohesion;living standard;working condition;productive factor;Gender Equality;production process;individual sectors;source country;foreign value;quality good;quantitative measure;policy suggestions;remedial action;basic structure;supplier development;apparel industry;firm-level productivity;commercial purpose;original work;sole responsibility;copyright owner;market structure;diagnostic work;logical framework;automotive industry;protecting investor;customs efficiency;upward mobility;foreign source;sale decision;production network;traditional production;



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Taglioni,Daria Winkler,Deborah Elisabeth

Making global value chains work for development (English). Trade and Development Washington, D.C. : World Bank Group.