Analytical Frameworks for Global Value Chains: An Overview

Abstract

The paper aims to trace the development of analytical frameworks for global value chains (GVC). This is not an encyclopedic literature survey; it focuses only on the strands of research that explicitly consider vertical (supply–use) relations of cross-border production sharing and their impact on distributing value among the parties — which is at the heart of GVC studies.

The first section of the paper considers why GVC studies are important from the viewpoint of their contribution to the history of international trade theories. The second traces the development of the GVC concept, with some reference to the evolution of global production networks. The third introduces the main theoretical achievement in GVC studies. The fourth summarizes the challenges for a quantitative description of GVCs, particularly for the innovative use of multicountry input-output tables. The fifth addresses pressing issues for advancing GVC research. The last section presents some meta-methodological considerations on the development of GVC analyses.

Keywords: global value chain, GVC, production network, input-output analysis

JEL Classification: F10, F20, F60