Global value chains (GVCs) are extending their reach into regions and sectors that have historically been under-involved in this business model. There is considerable interest in the development community as to the complex relationship between GVCs and sustainable development outcomes in low-income countries, including social and environmental issues in addition to economic performance and income generation. This paper analyses that relationship from the specific perspective of trade facilitation—an important set of policies that have been shown to boost GVC involvement in developing countries. If policies are appropriately designed and implemented, there is much that trade facilitation can do to increase GVC involvement, which in turn can have positive implications for sustainable development prospects.
Written by Ben Shepherd