Domestic Foundations of Global Value Chains

17 Pages Posted: 29 Dec 2015

See all articles by Cosimo Beverelli

Cosimo Beverelli

World Trade Organization (WTO); European University Institute

Robert B. Koopman

World Trade Organization (WTO) - Economic Research and Analysis Division

Victor Kummritz

World Trade Organization (WTO); Graduate Institute of International and Development Studies (IHEID)

Simon Neumueller

Graduate Institute of International and Development Studies

Date Written: December 29, 2015

Abstract

We analyze the relationship between domestic value chains (DVCs) and global value chains (GVCs). We study whether the development of DVCs has an effect on – or can even be considered a precondition for – the integration into GVCs. We provide evidence that DVC integration positively affects GVC integration. In other words, a functioning DVC is an important determinant for a successful integration into GVCs. The results hold in particular for backward linkages, namely, when intermediates sourced from abroad are used as proxy for GVC integration.

Keywords: Domestic value chains, global value chains, input-output linkages

JEL Classification: F14, F15, F63

Suggested Citation

Beverelli, Cosimo and Koopman, Robert B. and Kümmritz, Victor and Neumueller, Simon, Domestic Foundations of Global Value Chains (December 29, 2015). Available at SSRN: https://ssrn.com/abstract=2708980 or http://dx.doi.org/10.2139/ssrn.2708980

Cosimo Beverelli

World Trade Organization (WTO) ( email )

Rue de Lausanne 154
Geneva, 1202
Switzerland

European University Institute ( email )

Villa Schifanoia
133 via Bocaccio
Firenze (Florence), Tuscany 50014
Italy

Robert B. Koopman

World Trade Organization (WTO) - Economic Research and Analysis Division ( email )

Rue de Lausanne 154
CH-1211 Geneva
Switzerland

Victor Kümmritz (Contact Author)

World Trade Organization (WTO) ( email )

Rue de Lausanne 154
Geneva 21, CH-1211
Switzerland

Graduate Institute of International and Development Studies (IHEID) ( email )

Maison de la Paix
Chemin Eugène-Rigot 2
Geneva, 1202
Switzerland

Simon Neumueller

Graduate Institute of International and Development Studies ( email )

Maison de la paix
Chemin Eugène-Rigot 2
Geneva, CH-1202
Switzerland

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