Summary

The  present  paper  summarizes  the  recent  findings  of  the  empirical  and academic  literature  on  global  value  chains,  including  policy  analysis  conducted  by the Economic and Social Commission for Asia and the Pacific (ESCAP) secretariat, and  provides  suggestions  on  policy  implications  and  recommendations  for consideration by the Governments of Asia and the Pacific. In the paper, alternative measures  are  used  to  provide  stylized  facts  on  participation  of  Asia-Pacific economies in regional and global value chains. The main factors contributing to those levels  of  participation  are  also  examined.  Moreover,  the  paper  explores  the relationship  between  global  value  chains  and  regional  integration  processes,  in particular the linkages between  different types  of  preferential  trade agreements and the evolution of global value chains.  It also includes an analysis of the prospects for Asia-Pacific  developing  economies  to  enhance  their  participation  in  regional  and global  value  chains  as  a  way  to  achieve  the  sustainable  development  goals.  The linkages between corporate and global value chains’ sustainability are explored, with special attention given to small and medium-sized enterprises. More specifically, the paper  highlights  development  implications  and  challenges  for  small  and  medium-sized  enterprises  in  the  context  of  specific  industries  (agribusiness,  garments  and apparel,  and  automotive  parts).  The  concepts  of  circular  economy  and  social investment are also examined in the context of relevance for and linkages with global value chains.

The  analysis  concludes  with  a  number  of  policy  options  for  national  trade strategies  and  the  design  of  economic  policies  to  enhance  the  competitiveness  of firms and  value-added content  of  production.  The  paper emphasizes  that no  simple “one-size-fits-all” prescriptions are available or desirable and that in fact some of the factors influencing developments in this area  may  not  even  be under  the control  of trade  policymakers.  Several  initiatives  for  ESCAP  to  undertake  are  offered  for consideration by the Commission.