Abstract
Purpose - This study investigates the relationship between geographic proximity and location and global value chain (GVC) trade. Design/methodology/approach - It conducts multidimensional scaling to analyze GVC trade within the European Union 15 (EU15). Using value-added trade data for - 2015 from the Organisation for Economic Co-operation and Development (OECD), we analyze the dissimilarities in the following four types of trade flows from the geographic and industry perspectives: (1) grossexports; (2) gross imports; (3) gross exports of intermediate products; (4) and gross exports of final products. Findings - The results show that GVC trade flows are related to geographic location and proximity, resource endowment, and service links. Research implications and Originality - A country with a rich resource endowment is not an unreciprocated exporter; rather, it imports as much as it exports in GVC industries. However, the relationship between geographic proximity and location with trade is at its lowest level during the export of final products, in which the location of the assembly plant is the most important factor.
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