Global parliamentary-network-oct2014 g20-trade

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OECD - Organisation for Economic Co-operation and Development

Data & Analytics

GLOBAL VALUE CHAINS CHALLENGES, OPPORTUNITIES AND IMPLICATIONS FOR POLICY
OECD Global Parliamentary Network meeting
Paris, 2 October 2014
Trudy Witbreuk, Head of the Development Division, OECD Trade and Agriculture Directorate

GVC participation in non-OECD economies
•
Y
OECD Trade and Agriculture Directorate 3
OECD (2013) Interconnected economies

Jobs in the business sector sustained by foreign final demand, 1995 and 2008

Implications: Trade and Investment Policies
•GVCs are about imports and exports;
•Barriers to import = taxes on exports
•Trade facilitation + efficient services
•Standards
6

Countries with high regulatory barriers import less, but also export less services
0%
1%
2%
3%
4%
5%
6%
7%
8%
Air
Legal services
Insurance
Banking
Imports
Exports

OECD Services Trade Restrictiveness Index country profiles
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Regulatory transparency
Barriers to competition
Other discriminatory
measures
Restrictions to movement of
people
Restrictions on foreign entry
Average
Minimum

OECD Services Trade Restrictiveness Index
»
The STRI provides a snapshot of individual countries, relative to average and best practise
»
Allows countries to benchmark,
»
…trade negotiators to target bottlenecks,
»
…and firms to identify requirements to enter new markets
»
The STRI does not prescribe generic solutions,
»
…but helps governments to identify opportunities to improve their services policy performance.

The Importance of Complementary Policies
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The efficient functioning of GVCs (hence the participation of countries in GVCs) depends on the easy/smooth circulation of productive resources within GVCs: goods (final and intermediate), services, capital, people, human capital, technology
–
Strong social, environmental and governance frameworks and policies
–
Sound public institutions
–
Competition policy
–
Innovation systems
–
Financial systems
–
Active labour market policies
–
Investment in education, skills and training
–
Adequate social safety nets

For More Information
OECD Trade and Agriculture Directorate
visit our website
www.oecd.org/tad
download our publications
www.oecd-ilibrary.org
connect with us
www.twitter.com/OECDtrade
contact us
tad.contact@oecd.org

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