Washington, DC, April 16-17, 2013
Compnet Research Network, European Central Bank and Eurosystem
Peterson Institute for International Economics
International Trade Department, World Bank
Global Value Chains (GVCs) have grown substantially due to the increased supply of cheap labor, growing domestic markets in developing economies, and reductions in economic barriers to international trade and transportation costs. Recently, however, GVCs have undergone dramatic changes as companies seek to improve performance in their product life-cycles, unlock untapped value, and grow in a sustainable manner. New important determinants of value chain location are emerging, such as the advantages of manufacturing proximity to demand, the importance of integrated regional markets, and the increasing competitiveness of the North. The latter is driven by the so-called "digital energy revolution", which is making US energy costs among the lowest worldwide. This conference explored the domestic policy options for countries with different levels of income and economic endowment to attract investment and host segments of 21st century value chains in a durable and profitable way.
Day 2 drew on the analytical insights from the academic papers presented on Day 1 via a luncheon policy panel. The panel brought together top experts from the private sector, academia and policymaking institutions to explore the effective needs of the private sector, as well as public policy’s role in helping countries fully benefit from their participation in value chains, in upgrading their position within GVCs and in creating spillovers to the domestic economy.