Ana Margarida Fernandes, Hiau Looi Kee, Deborah Winkler · 2021
The World Bank Economic Review · Oxford University Press (OUP)

Determinants of Global Value Chain Participation: Cross-Country Evidence

The past decades have witnessed big changes in international trade with the rise of global value chains (GVCs). Some countries, such as China, Poland, and Vietnam rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of countries’ GVC participation, based on a panel database of more than 100 countries from 1990 to 2015. Results from a three-pronged empirical approach show that factor endowments, geography, political stability, liberal trade policies, foreign direct investment and domestic industrial capacity are very important in determining GVC participation. These factors matter more for GVC trade than traditional trade.

Full publication is available on: DOI 10.1093/wber/lhab017

Contributors from our Network

Deborah Winkler

Deborah Winkler
World Bank

Deborah Winkler is a Senior Consultant in the World Bank Group’s Macroeconomics, Trade and Investment Global Practice. Deborah has worked on issues of global value chains, offshoring, export competitiveness, foreign direct investment, and trade in services; their determinants; and their economic and social effects. She is particularly interested in the role that policy can play in mediating these relationships. She is a former Research Associate of the New School for Social Research and received her PhD in economics from the University of Hohenheim in Germany.Most recently, Deborah was a lead author of the World Bank’s report on Women and Trade: The Role of Trade in Promoting Gender Equality (2020) and a core team member of the World Development Report 2020: Trading for Development in the Age of Global Value Chains (2019). 

Read more about Deborah Winkler ›

Share on:

Stay tuned on the latest news from our research network.