Global value chains : new evidence for North Africa
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2110-7017
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International economics, 2018, Vol. 153, pp. 42-54
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DEL PRETE, Davide, GIOVANNETTI, Giorgia, MARVASI, Enrico, Global value chains : new evidence for North Africa, International economics, 2018, Vol. 153, pp. 42-54 - https://hdl.handle.net/1814/60890
Abstract
This paper analyzes the participation and the position of North African countries in global value chains (GVCs). Exploiting the recently released Eora multiregional Input-Output tables, we describe regional and country GVC involvement. North African countries have not so far been able to fully integrate into international production networks. However, a large part of their (low) trade is due to value added related activities, mainly in the upstream phases, and the importance of foreign linkages has been increasing over time. We complement the Input-Output analysis with sectoral evidence from selected case studies and policy experiences. Overall, our results suggest that enhancing the GVC participation of North African countries has potential to substantially benefit local industries, countries and indeed the whole area. However, the ability to retain such benefits relies on specific local conditions, such as a favorable environment for foreign investments, and lower trade barriers, thus leaving room for policy intervention.
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Available online 24 March 2017