Global value chains reshape our policy thinking

The international fragmentation of production in global value chains (GVCs) challenges the way we look at the global economy. It is essential to understand how global value chains work, how they affect economic performance, and how policy can help countries to derive benefits from their participation in GVCs. The policy implications are diverse and include trade policy, investment policies, innovation policies, and framework and structural policies that directly affect how, and to what extent economies can benefit from global value chains.