The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Kevin Cheng, Sidra Rehman, Dulani Seneviratne, and Shiny Zhang
INTERNATIONAL MONETARY FUND
Against the backdrop of the rise of global value chains (GVCs), particularly in Asia, this
paper documents key developments of GVCs and investigates what factors cause
economies to reap greater benefits from GVC participation. Key findings include: first,
moving toward a more upstream position in production and raising economic complexity
are associated with the country increasing its share of GVC value added. Second, fostering
GVC participation and expanding the share of the domestic value added in a value chain
require efforts to reduce trade barriers, enhance infrastructure, foster human capital
formation, support research and development, and improve institutions.