Upgrading in Global Value Chains

Erol Taymaz
Department of Economics
Middle East Technical University

13 December 2017



Global value chains

Global trade (exports of goods and services), by type of TNC involvement, 2010

Source: UNCTAD, 2013: 16.

GVC participation, 1995 and 2009

Source: OECD, WTO and World Bank (2014: 14)

Domestic value added trade shares of the top 25 developing economy exporters, 2010

Source: UNCTAD (2013: 14)

Foreign value added share (foreign value added as a share of exports) indicates what part of a country’s gross exports consists of inputs that have been produced in other countries.

Domestic value added share (the share of the country’s value added incorporated in third countries gross exports) can be used as an indicator for the extent of participation in downstream activities.

GVC participation is simply the sum of foreign and domestic value added shares.

Share of foreign value added in exports, selected industries, 2010