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GLOBAL VALUE CHAINS
CHALLENGES,
OPPORTUNITIES AND IMPLICATIONS FOR POLICY
OECD Global Parliamentary Network meeting Paris, 2 October 2014 Trudy Witbreuk, Head of the Development Division, OECD Trade and Agriculture Directorate
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GVC participation, 1995 and 2009
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GVC participation in non-OECD economies
• Y
OECD Trade and Agriculture Directorate 3 OECD (2013) Interconnected economies
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Services value-added in gross exports
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Jobs in the business sector sustained by foreign final demand, 1995 and 2008
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Implications: Trade and Investment Policies
• GVCs are about imports and exports;
• Barriers to import = taxes on exports
• Trade facilitation + efficient services
• Standards
6
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OECD Trade Facilitation Indicators
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OECD Trade Facilitation Indicators country profile
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Countries with high regulatory barriers import less, but also export less services
0%
1%
2%
3%
4%
5%
6%
7%
8%
Air Legal services Insurance Banking
Imports
Exports
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OECD Services Trade Restrictiveness Index country profiles
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Regulatory transparency
Barriers to competition
Other discriminatorymeasures
Restrictions to movement ofpeople
Restrictions on foreign entry
Average
Minimum
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OECD Services Trade Restrictiveness Index
» The STRI provides a snapshot of individual countries, relative to average and best practise
» Allows countries to benchmark,
» …trade negotiators to target bottlenecks,
» …and firms to identify requirements to enter new markets
» The STRI does not prescribe generic solutions,
» …but helps governments to identify opportunities to improve their services policy performance.
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The Importance of Complementary Policies
• The efficient functioning of GVCs (hence the participation of countries in GVCs) depends on the easy/smooth circulation of productive resources within GVCs: goods (final and intermediate), services, capital, people, human capital, technology
– Strong social, environmental and governance frameworks and policies
– Sound public institutions
– Competition policy
– Innovation systems
– Financial systems
– Active labour market policies
– Investment in education, skills and training
– Adequate social safety nets
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For More Information
OECD Trade and Agriculture Directorate
visit our website
www.oecd.org/tad
download our publications www.oecd-ilibrary.org
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www.twitter.com/OECDtrade
contact us [email protected]