Global value chains and intra-BRICs trade in value-added
We analyze the BRICs countries' role in Global Value Chains (GVCs) and their trade patterns in value-added and vertical specialization, using the World Input-Output Database (WIOD) from 2000-2014 with a decomposition model of intermediate goods and trade flows. Our findings reveal increased con...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-01-01
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| Series: | Journal of Government and Economics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667319324000314 |
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| Summary: | We analyze the BRICs countries' role in Global Value Chains (GVCs) and their trade patterns in value-added and vertical specialization, using the World Input-Output Database (WIOD) from 2000-2014 with a decomposition model of intermediate goods and trade flows. Our findings reveal increased connectivity within global value chains, particularly for China and India. China significantly advances GVCs and intra-BRICs trade, focusing on high and medium-high technology industries. Brazil and Russia, however, have limited participation in GVCs, mainly engaging in value-added trade for medium-low and low-technology industries. Our network analysis reveals increasing connections between countries in global value chains, particularly for China and India. India excels in medium-technology goods and has increased its share in GVCs. While India and China demonstrate strong vertical specialization, Brazil and Russia concentrate major component exports on domestic value-added. Our study emphasizes the importance of expanding coordinated government policies among BRICs countries to foster value-added trade gains and industrial development. Governments in BRICs must address the strategic gaps to leverage their domestic resources effectively within the GVC framework. |
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| ISSN: | 2667-3193 |