Using Foreign Factors to Enhance Domestic Export Performance A Focus on Southeast Asia

A country or firm's position in the value chain will largely depend on its comparative advantage, and therefore the mix of skills and resource endowments it brings to international production. For some, this might initially involve specialising in the labour intensive segments while others may...

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Bibliographic Details
Main Author Javier Lopez Gonzalez
Format Paper
LanguageEnglish
Published OECD Publishing 11.10.2016
SeriesOECD Trade Policy Papers
Subjects
exports
global value chains
globalisation
South East Asia
trade
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Summary:A country or firm's position in the value chain will largely depend on its comparative advantage, and therefore the mix of skills and resource endowments it brings to international production. For some, this might initially involve specialising in the labour intensive segments while others may specialise in the high-tech elements. In either case what matters is whether participation leads to growing economic activity. This paper discusses how countries can use foreign value added to enhance their domestic export performance. It shows that foreign sourcing is a complement to, rather than substitute for, the creation of domestic value added and employment in exports highlighting how, with GVCs, export competitiveness is inextricably linked to importing. The paper discusses how ASEAN countries can leverage different policies in order to make the most out of GVCs.
ISSN:1816-6873
DOI:10.1787/5jlpq82v1jxw-en