The Changing Dynamics of Trade in Global Value Chains Between Developed and Developing Economies

Abstract

This chapter discusses the recent power shift between developed and developing economies in the global value chains (GVC). It starts with a discussion on the domination of developed countries due to three factors, namely technological capabilities, the availability of capital, and the existence of well-established infrastructure. It further discusses critical factors that enable the emergence of developing countries in the GVC, such as the rise of manufacturing capabilities, the democratisation of technology, regional integration, rising consumer markets, and incentives from the government. Two case studies are discussed to illustrate how companies capitalise on this shift. Further, the chap..