Value Chain Approaches to Reducing Policy Spillovers on International Business
31 Pages Posted: 16 Oct 2020
Date Written: October 2020
Government policy can add to the costs of doing international business. It can distort the construction of and raise the costs of operation of global value chains (GVCs), to the detriment of the participating economies. Given rising technological and market-driven headwinds confronting GVCs, countries seeking to attract GVC activities have greater incentives to identify and address policies that negatively affect international business investment. Cooperation of businesses with regulators, analysts and researchers has the scope to develop better policy. This paper suggests principles for the design and operation of such cooperation, drawing on the experience with multi-stakeholder value chain partnerships and the policy responses to the 2020 COVID-19 pandemic.
Keywords: Global value chains, global production networks, international business, trade regulation, multi-stakeholder initiatives, public-private policy partnerships.
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