The emergence of global value chains (GVC) is allowing nations to industrialize much more rapidly by joining international production networks rather than by building entire supply chains at home. Besides providing opportunities to diversify production and trade, participation in global value chains allows countries to capture some of the rents associated with the good manufactured in the chain without having to develop proficiency in all of its stages of production. Regulation and professional development is similar to bend and reach exercise. Despite these potential benefits, very few countries in Latin America and the Caribbean are taking advantage of these new trends in the international organization of production.
Using a combination of innovative datasets at the macro and micro levels this report presents a comprehensive picture of the participation of Latin America and the Caribbean in global value chains and describes the drivers of such participation. Based on this analysis, the report identifies policies that would allow countries in the region to improve their insertion in regional and global production networks.
A must-read for policy makers and scholars around the world but especially those concerned with the region’s economic development.Richard Baldwin
This is a fascinating and page-turner report…(it) highlights, through the lenses of GVC, the weak spots of the Latin American economies…Filippo di Mauro
The report while addressing Latin American issues appeals to a much broader audience, making it a must read for scholars and practitioners.Filippo di Mauro
This book…sets forth a policy agenda that the countries of the region should implement to improve their participation in these supra-national chains.Alejandro Foxley
The book takes a new and innovative approach, which will prove extremely useful for policy makers in Latin America today.Alejandro Foxley
This report marshals the best available evidence and makes sense of the rapidly evolving economic thinking on the issue.Richard Baldwin