The Role of Global Services Value Chains for Services-Led Development

Abstract

The emergence of global value chains (GVCs) has lowered the threshold for countries to participate in globalization� They offer a new path for development without having to establish complete production capabilities from upstream inputs to downstream final goods and after-sales services� Developing countries can plug into GVCs and specialize in specific economic activities in accordance with their comparative advantage to benefit from gains from trade and specialization�