Global value chains: Opportunities and challenges for development

Abstract

Fragmentation of global production, resulting from the rise of technological innovations in communication and transportation, creates global value chains (GVCs), a dominant feature of World trade, encompassing groups of developing, emerging, and advanced economies. This paper will: (i) firstly, review the nature, and scope of global value chains; (ii) then, elaborate the precious opportunities can be offered for less- developed and emerging countries into the World economy, albeit at unparalleled paces; (iii) finally, consider obstacles that are exposed on participations and policies, designed in correlation with rapid change in global value chains landscape.