Global Value Chains: The Basics

World trade statistics show that approximately 70% of world trade in goods and services is related to Global Value Chains. Despite the importance of GVCs for integrating into the world economy, developing countries face a number of challenges to participating in GVCs. The objective of this series is to provide both staff and clients an understanding of GVCs and how to connect the analysis to op... view more


What are Global Value Chains? Concepts and Measurements

GVCs represent the principle of international division of production that goes beyond physical production of goods, and includes activities such as R&D, design, assembly, marketing and post-sales services; the potential to connect globally by entering the value chain by doing one or a few tasks; and the importance of domestically generated value added.


Strategic Segmentation for Global Value Chains

Analysis of GVCs provides a relatively good understanding of where value is created. But how is that value is created? By using the example of the apparel sector, one of the earliest value chains to globalize its production, this module explains how to evaluate the sources of competitive advantage of a cluster/industry strategic positioning of firms in terms of existing business segments, industry characteristics, geographic scope and interactions among its agents.


Building Public Strategic Analysis Capabilities

This module introduces knowledge products to train client governments to provide local entrepreneurs and businesses with high-quality information that can influence their business interventions, enhance competitiveness and strengthen global value chains. A World Bank program in Haiti is used to illustrate the approach and the goals of the program.


Investment Policy and Global Value Chains

Foreign direct investment (FDI) is the most common vehicle for countries to participate in GVCs. What the global patterns of FDI flows show and what types of FDI has the most transformative potential for a country. To attract and sustain GVC participation, the importance of creating an attractive enabling environment for investment.


The Importance of Trade Policy for Global Value Chains

As countries become more interconnected by virtue of their participation in global or regional values chains, changes in the trade policy environment have a profound impact on the ability of firms to succeed in international markets. Overview of priority border and behind the border trade policy issues to leverage GVC participation for development.


Global Value Chains and Jobs

What are the implications of GVCs for jobs in terms of number, quality, returns, scale and nature of jobs? The potential negative impact of GVCs on jobs; and GVC upgrading strategies to deal with these challenges.

About the Presenters

Michael Ferrantino

Michael J. Ferrantino is Lead Economist in the World Bank Group Trade and Competitiveness Global Practice. Prior to joining the Bank, he was Lead International Economist at the US International Trade Commission. Michael's published research spans a wide array of topics relating to international trade, including non-tariff measures and trade facilitation, global value chains, the relationship of trade to the environment, innovation, and productivity, and US-China trade. He has taught at Southern Methodist, Youngstown State, Georgetown, American, and George Washington Universities. Michael's recent work includes: "The Benefits of Trade Facilitation: A Modelling Exercise," prepared for the World Economic Forum's January 2013 report on supply chains, "Enabling Trade: Valuing Growth Opportunities;" a chapter on non-tariff measures in The Ashgate Research Companion to International Trade Policy (2012); and "Evasion Behaviors of Exporters and Importers; Evidence from the U.S.-China Trade Data Discrepancy," with Xuepeng Liu and Zhi Wang, Journal of International Economics, 2012. Michael holds a PhD from Yale University.

Emiliano Duch

Emiliano Duch is the Lead Finance and Private Sector Development Specialist in the World Bank Group's Trade and Competitiveness Global Practice. He is considered the leading expert in helping countries and regions to develop competitive private sectors. His start in the industry began 20 years ago together with Professor Michael Porter and has since specialized in the implementation of regional competitiveness strategies. In 1994, he founded, the first consulting firm specialized strengthening the development of strategies based on clusters. As CEO of the firm, Emilio has led more than 120 initiatives of clusters in Europe and Latin America. He is an architect of the Polytechnic University of Catalonia, and holds an MBA and MPA from the University of Harvard. Duch has served as advisor to the public administration institutions and the regional governments, as well as multilateral institutions, such as the European Union and the Inter-American Development Bank. He has taught group seminars to USAID, IADB, and many national organizations. Emiliano serves as coordinator for the Clusters Summer School for the innovation of the Universidad Adolfo Ibañez in Santiago (Chile). He is considered the leading expert in cluster competitiveness methodologies, that now have been adopted widely worldwide.

Peter Kusek

Peter Kusek is a Senior Investment Policy Officer in the World Bank Group’s Trade and Competitiveness Global Practice, advising client governments on business environment reforms. He specializes in foreign direct investment regulation and administrative practices. He also leads the investment climate analytics program. Prior to joining the World Bank Group, Peter worked on small-enterprise development in Bangladesh and on microfinance in Tanzania. He was also program manager at the Center for Strategic and International Studies, a Washington-based foreign and security policy think tank. Peter holds a master’s degree in economic policy and international development from Princeton University’s Woodrow Wilson School of Public and International Affairs.

Jose Daniel Reyes

Jose Daniel Reyes is a senior economist in the Trade and Competitiveness Global Practice of The World Bank Group. He has several years of research and professional experience, working on issues of trade policy, competitiveness, and globalization. Prior to joining the Bank, Daniel worked for the Inter-American Development Bank and for the Colombian government monitoring country performance in the Latin American region. His recent policy work focuses on the economic incidence of Non-Tariffs Measures, the vulnerability of a country's exports to fluctuations in the economic activity of foreign markets, and firm-level dynamics. He has worked of trade and competitiveness issues in Central-America, Africa, Europe, and Asia. He holds a PhD in Economics from Georgetown University, where he received an award for the best dissertation.

Thomas Farole