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End of an Era? Global Value Chains, Trade and Development

Global value chains (GVCs) powered an economic revolution over the past three decades: growth accelerated, incomes rose, and poverty rates plunged. Almost 50% of global trade involves GVCs, but rising trade tensions and uncertainties over market access threaten their future.

Penny Goldberg, World Bank Group Chief Economist together with Arturo Herrera Gutierrez, Mexico’s Finance Minister... view more

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Part 1: Why did the World Bank decide for the first time since the 1990s to have a report focus on Global Value Chains? The last time a report on trade was written it was 30 years ago... With the trade tensions escalating the report is particularly timely and policy relevant.

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Part 2: Trade has big benefits to the economy as a whole but there are winners and losers - resulting in inequalities among and within courntries. Some countries are concerned they may get stuck producing low value goods and get trapped in the middle-income trap. Watch the Bite video to learn more about this phenomenon... 

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Part 3: What can countries do to raise their investment in human capital? What is the relationship between economic growth and the environmental costs of growth in trade? How do we make trade more inclusive and sustainable?  

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Part 4: How does technology and digitization of the economy fit into the trade and global value chains story? Pinelopi Goldberg, Chief Economist, World Bank Group points out that new technologies and automation are actually good news for trade. 

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Part 5: What is the EU or Finnish perspective of what the authorities in EU are doing to keep the trade open? Are capital transfers a way to increase 'stable stay' or are they other factors that could increase total factor productivity?