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dc.titleThe Reorganization of Global Value Chains: What’s in it for Latin America and the Caribbean?
dc.contributor.authorMesquita Moreira, Mauricio
dc.contributor.authorBlyde, Juan S.
dc.contributor.authorVolpe Martincus, Christian
dc.contributor.authorDolabella, Marcelo
dc.contributor.authorMarra de Artiñano, Ignacio
dc.contributor.orgunitProductivity, Trade and Innovation Sector
dc.coverageLatin America and the Caribbean
dc.date.available2022-12-05T00:12:00
dc.date.issue2022-12-05T00:12:00
dc.description.abstractAs Latin America and the Caribbean bounce back from a sanitary crisis of historic proportions, the search is on for policies that can accelerate recovery while boosting long-term growth. In a scenario of tight fiscal constraints, trade and integration (T&I) policies seem to fit this description. There are particularly high expectations in some policy circles that the benefits of T&I policies will be boosted by an impending reorganization of global value chains. Yet little is known about the relevance, shape, and impacts of this reorganization. Will this lead to reshoring, nearshoring, or some slightly modified version of the status quo? Will this benefit the region? This paper takes a stab at answering these questions. It begins with a critical review of the most frequently cited drivers of the reorganization. This is then followed by an analytical exercise that uses the 20182019 US import tariff hike as a quasi-natural experiment. The results seem more consistent with modest trade and investment gains for the region, associated with incremental rather than major adjustments to global value chains. It concludes by arguing that whatever the future brings, minimizing trade and investment costs is likely to remain the regions dominant strategy.
dc.format.extent54
dc.identifier.doihttp://dx.doi.org/10.18235/0004592
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Reorganization-of-Global-Value-Chains-Whats-in-it-for-Latin-America-and-the-Caribbean.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectValue Chain
dc.subjectIntegration and Trade
dc.subjectGlobal Value Chain
dc.subjectTariff System
dc.subjectNearshoring
dc.subjectManufacturing Industry
dc.subjectLabor
dc.subjectSmall Business
dc.subject.jelcodeF14 - Empirical Studies of Trade
dc.subject.jelcodeF23 - Multinational Firms • International Business
dc.subject.jelcodeF63 - Economic Development
dc.subject.jelcodeO14 - Industrialization • Manufacturing and Service Industries • Choice of Technology
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.jelcodeO24 - Trade Policy • Factor Movement Policy • Foreign Exchange Policy
dc.subject.keywordsValue Chains;Trade;Latin America;Nearshoring
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01414
idb.operationRG-E1717
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