Global value chains promoting economic integration in Asia-Pacific : insights from a systematic literature review

Economic integration, encompassing the removal or reduction of trade barriers and the coordination of monetary and fiscal policies, plays a pivotal role in promoting cooperation among nations. This systematic literature review examines the role of global value chains (GVCs) in promoting economic integration, with a specific focus on the Asia-Pacific region. Utilizing the PRISMA methodology, 3028 research papers on economic integration and GVCs were analysed. The study aims to investigate the significance of GVCs in driving economic integration, explore factors influencing GVC participation, and identify the economic variables affected by GVC engagement. The analysis reveals a predominant focus on developed nations rather than developing countries in the research on GVCs, with 75 studies discussing factors influencing GVC participation, such as GDP, servicification, trade agreements, digitalization, exchange rates, and non-tariff trade barriers. Additionally, 95 research papers examine the impact of GVC participation on economic indicators like labour productivity, employment, and GDP growth. However, studies specifically exploring the parameters for enhancing economic integration through GVCs in the Asia-Pacific region are limited and recent, underscoring the need for further research. This review highlights the growing importance of the Asia-Pacific region within the global value chain and emphasizes the potential for leveraging GVCs to foster economic integration.