Global Value Chains and International Trade Dynamics

AuthorDeeparghya Mukherjee,Rupa Chanda
Published date01 November 2022
Date01 November 2022
Subject MatterEditorial
Global Value Chains
and International
Trade Dynamics
International trade through global value chains (GVCs) has helped the world split
production of various goods and services across countries over time, providing a
new dimension to globalisation (Gereffi et al., 2001). This has resulted in most
products being ‘made in the world’. The story of comparative advantage in
production of commodities stands modified as ‘comparative advantage in tasks’
(Blinder, 2006). Today, developing economies have the option of specialising in
exportable tasks which could serve as the engine of trade-driven economic growth
(Kummritz et al., 2017). Accordingly, trade agreements have proliferated to
facilitate trade in parts and components. However, recent de-globalisation
trends—including, the US–China trade war, the withdrawal of the USA and
India from the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) and Regional Comprehensive Economic Partnership
(RCEP) agreements, respectively, the muted effectiveness of the WTO’s dispute
settlement system and, most recently, the disruption of global trade and supply
chains due to the COVID-19 crisis and the ongoing Ukraine crisis—raise questions
about the future prospects of GVCs and more broadly about the future of
globalisation (Amiti et al., 2019; Baldwin & Tomiura, 2020; Miroudot &
Nordström, 2020). There are a number of academic questions that these
developments generate, and this special issue entitled ‘Global Value Chains and
International Trade Dynamics’ deals with a subset of these questions. We are
grateful to the editor, Foreign Trade Review, and his/her team for giving us the
opportunity to guest edit this special issue.
The six articles included in this special issue may be broadly divided into
three specific themes. The first two articles have a global canvas and address
questions such as the effect of GVC participation on long-term growth and the
effects of deglobalisation on Chinese involvement in GVCs and associated
ramifications. The third and fourth articles concentrate on two specific sectors,
namely the garment and wearing apparel sector and the automotive sector in
India, and examine India’s participation in these sectoral GVCs. The last two
articles address questions on the effect of GVC participation on gender-
based wage gap and the problems faced by Micro Small and Medium
Enterprises (MSMEs) in participating in GVCs. Both the articles are based on
experiences in India.
The implications of GVC participation for long-term economic growth is a
fundamental question. Camila do Carmo Hermida, Anderson Moreira Aristides
Foreign Trade Review
57(4) 363–366, 2022
© 2022 Indian Institute of
Foreign Trade
Reprints and permissions:
DOI: 10.1177/00157325221106280

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