Tag Archives | GVC participation
Economics, Governance and public sector management, Industry and trade, Private sector development

SMEs in global value chains: Catalysts for dynamic and inclusive economic growth

SMEs in global value chains: Catalysts for dynamic and inclusive economic growth
The world has been witnessing the active construction of global value chains (GVCs) by multinational corporations (MNCs) in recent decades. According to the World Bank (2020), the share of GVC trade in world trade increased rapidly from approximately 40% in 1990 to over 50% in 2007 before declining somewhat after the global financial crisis in 2007–2008. MNCs fragment production processes into various stages and locate them in various countries and places where the particular stages can be conducted most efficiently, or at least cost, in order to achieve an efficient production system.