[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-113041-en":3,"doc-seo-113041-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},113041,1099513958607,"Jiven","https://ap-avatar.wpscdn.com/avatar/100002390cf8733938c?x-image-process=image/resize,m_fixed,w_180,h_180&k=1778829742770036399",8,"Research & Report","Determinants of Global Value Chain Participation - Cross-Country Evidence","Global value chains have reshaped international trade, producing sharp divergence in country outcomes: some nations expanded rapidly while others—particularly in parts of Africa—integrated less. This paper investigates the determinants of countries’ global value chain participation using panel data covering more than 100 countries from 1990 to 2015. An empirical strategy with multiple components highlights the key roles of factor endowments, geography, political stability, liberal trade policies, foreign direct investment, and domestic industrial capacity, with these drivers often exerting stronger effects for value-chain trade than for traditional trade.","Pub lic Disclosure Authorized Pub lic Disclosure Authorized  \nThe World Bank Economic Review, 36(2), 2022, 329–360  \n[https://doi.org10.1093/wber/lhab017](https://doi.org10.1093/wber/lhab017)  \nArticle  \nDeterminants of Global Value Chain Participation: Cross-Country Evidence  \nAna Margarida Fernandes, Hiau Looi Kee, and Deborah Winkler Abstract  \nThe past decades have witnessed big changes in international trade with the rise of global value chains (GVCs) . Some countries, such as China, Poland, and Vietnam rode the tide, while other countries, many in the Africa region, faltered. This paper studies the determinants of countries’GVC participation, based on a panel database of more than 100 countries from 1990 to 2015 . Results from a three-pronged empirical approach show that factor endowments, geography, political stability, liberal trade policies, foreign direct investment and domestic industrial capacity are very important in determining GVC participation. These factors matter more for GVC trade than traditional trade.  \nJEL classification: F13, F14, F23, O2  \nKeywords: global value chain, factor endowments, trade policy, foreign direct investment, institutions  \n1. Introduction  \nIn the early 1990s, Argentina tried to develop a homegrown auto industry, hiding behind an average tariff of more than 13 percent. Over the past two decades, Argentina’s auto exports have stagnated at a dismal 0.2 percent of global auto exports. Around the same period, General Motors (GM), one of the world’s largest automakers, set up GM Poland to import Opel cars for the large Polish domestic market. In 1994, production activities of GM Poland started, and today Poland is one of the world’s major auto exporting countries. Similar to the auto industry in Poland, Vietnam’s electronics export sector expanded sharply in less than a decade, fueled by foreign direct investment (FDI) . Today, Vietnam is the world’s second largest  \nAna Margarida Fernandes is Lead Economist at the Development Research Group at the World Bank; her email address is [afernandes@worldbank.org. Hiau Looi Kee](afernandes@worldbank.org. Hiau Looi Kee) (corresponding author) is Lead Economist at the Development Research Group atthe World Bank; her email address [is hlkee@worldbank.org. Deborah Winkler is Senior Consultant](is hlkee@worldbank.org. Deborah Winkler is Senior Consultant) in Macroeconomics, Trade and Investment Global Practice at the World Bank; her email address [is dwinkler2@worldbank.org. This paper](is dwinkler2@worldbank.org. This paper) is a substantial revision of the background paper “Factors Affecting Global Value Chain Participation across Countries,” prepared for the World Development Report 2020, Trading for Development in the Age of Global Value Chains. The authors thank Pol Antràs, Caroline Freund, Penny Goldberg, Aaditya Mattoo, and other colleagues for helpful comments. We are grateful to Alejandro Rojas, Bishakha Barman, and Natalia Camelo for research assistance and to Farid Toubal, Mary Hallward-Driemeier, and Gaurav Nayyar for sharing data on English language and foreign direct investment. We acknowledge financial support from the World Bank’s Multidonor Trust Fund for Trade and Development and the Strategic Research Program on Economic Development. Finally, we thank editor Nina Pavcnik and two anonymous referees for their helpful comments. The findings of this paper are those of the authors and do not necessarily represent the views of the World Bank, or its member countries. A supplementary online appendix for this article can be found at The World Bank Economic Review website.  \n© The Author(s) 2021 . Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK.  \nAll rights reserved. For permissions, please e-mail: [journals.permissions@oup.com](journals.permissions@oup.com)  \nDownloaded from [https://academic.oup.com/wber/article/36/2/329/6359883 by LEGVP Law Library user on 08 ","cbCair9vHQENf6C4","https://ap.wps.com/l/cbCair9vHQENf6C4","pdf",694114,1,32,"English","en",105,"# Introduction\n## Empirical motivation and country examples\n# Conceptual framework for GVC participation\n## Fragmentation of production and firm-to-firm relationships\n## Economic effects of participation\n# Determinants and empirical approach\n## Three-pronged empirical strategy\n## Key factors and differential impacts","[{\"question\":\"What question does the paper address about global value chains?\",\"answer\":\"It asks which country-level factors determine global value chain participation and whether those factors affect GVC trade differently from traditional trade.\"},{\"question\":\"Which dataset and time period are used to study determinants?\",\"answer\":\"The analysis uses a panel database covering more than 100 countries from 1990 to 2015.\"},{\"question\":\"What main factors are found to be important for GVC participation?\",\"answer\":\"Factor endowments, geography, political stability, liberal trade policies, foreign direct investment, and domestic industrial capacity are identified as very important 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