Deepening of Global Value Chains

Abstract

The proliferation and deepening of global value chains (GVCs) have significantly reshaped many aspects of the global economy, including trade procurement patterns, business models, labor market, and environmental pressures. The structures of GVCs in textiles, ICT equipment, and motor vehicles are analyzed from both demand and supply perspectives, i.e., the structural changes in global demand and the supply perspective of these industries highlight in which industries and countries the products produced by the respective industry end up. For motor vehicles, the global demand had already increased significantly prior to 2005, mainly driven by Europe. The global increase in demand for ICT and electronics is mainly due to the increasing final demand in Asia and the RoW after 2005, while the demand in North America and Europe stagnated after 2005. Services play an important role along GVCs. Their share in the textiles and ICT GVCs remained constant throughout the years.