un escap research on global value chains · trade,investment’and’innovation’division research...

Trade, Investment and Innovation Division

UN ESCAP Research On Global value Chains

Mia [email protected]

29 Feb 2016,Bangkok

Just Jobs in Global value Chains: Inclusive Industrialization in ASEAN


Focus of work in trade and investment


Research and analysis

Policymakers need access to high-quality information and analysis.

ESCAP produces: • Annual Asia-Pacific Trade and

Investment Report• Working papers and

commentaries• Analyses in response to country

or organization’s demands

Building up capacity for research and analysis across the region.

Some knowledge outputsCommentariesMonographsAnnual publication


Capacity BuildingTraining on multiple areas: trade policy, economics, and analysis;

trade facilitation; CSR and private sector developmentApproximately 1,890 participants were trained in our capacity-

building workshops in last 2 years. Both regional and national levels


An open regional network of leading trade research institutions across the ESCAP region.

ARTNeT has 61 member institutions, 6 core partners and 9 associate partners working towards this aim.

Members include leading national trade research and academic institutions in 21 developing countries from all Asia-‐Pacific subregions.

ARTNeT now reaches large community of individual researchers.

Asia-‐Pacific Research and Training Network on Trade

artnet.unescap.org

ESCAP’S WORK ON GLOBAL VALUE CHAINS



Research and analysis

Regional cooperation/Normative

Capacity building


GVC Research and analysis

• Measurement of participation in GVCs at country / regional levels

• Features of participation at national and sectoral levels

• Role of services, FDI, transfer of technologyüIdentification of stylized facts, common features /lessons, etc., to formulate policy recommendations

1.The Asia-‐Pacific region is a major exporter of GVC-‐final products, but not yet a major source of final demand.

2. In post-‐crisis period, the core of final demand has started to shift towards Asia-‐Pacific.

3. GVCs participation is concentrated on 10 Asian countries.

4. The low-‐income countries are largely bypassed by GVCs.

5. Intraregional trade (especially South-‐South trade) is playing an increasing role.

6. Services create significant value in industrial exports.

Global Value Chains: Some stylized facts on Asia-‐Pacific participation

From technology diffusion to national upgrading – the role of absorptive capacity

Global Value Chains can support technology transfer and innovation

Key policy priorities for different stages of GVC participation

•Hard Infrastructure: connectivity , energy and logistics•Domestic regulatory reforms•Trade and investment liberalization and trade facilitation

Securing entry to GVCs

•Competitive environment and strong domestic services• Preferential trade agreements to support regional integration• Soft infrastructure: open financial services backed by strong regulation, education and training to increase absorptive capacity of firms and workers, ICT development

Expanding participation in GVCs

•Building innovative, human and firm capital•Governance and intellectual property protection•Harmonization of rules and standards with international norms•Openness to FDI and imported technology

Upgrading within GVCs and creating new GVCs


GVC Capacity building• Awareness – concepts and definitions, stylized facts• Capacity for generating evidence for policymaking (i.e. research): through

ARTNeT and in partnership with other organizations (ADBI, OECD..)• Policymakers: Understanding constraints to participation in GVCs:

– Trade policy instruments– FTAs– Trade facilitation– FDI promotion– Business environment– Innovation and TT environment

• Other stakeholders; NGOs, parliamentarians, businesses, etc.– Handbooks for SMEs, policymakers

• Other UN staff and agencies: internal knowledge sharingü To strengthen local capacity to formulate policies towards enabling

participation in GVCs and to be able to assess impacts


GVC Regional cooperation• Asia-‐pacific fragmented through formal subregional groupings and(to lesser

degree) historical production networks• Lack of pan-‐Asia (–Pacific) cooperation mechanisms spanning all elements of

trade and investment:– Ongoing and promising imitative to negotiate a region-‐wise paperless trade

agreement (to deal with some trade facilitation measures0– Ongoing but less promising RECI initiative – too “big” for current countries’

ambition?– One Belt, One Road (OBOR) – top down?– Other initiatives are not spanning Asia: EAEU, RCEP, FTAAP

• Looking at FTA and linkage to GVCs, literature is still divided but solid evidence about ROO often being an obstacle, especially for small players in the market– ESCAP work on regional cooperation to “harmonize” RoO for LDCs

• ASEAN and GVCs– Elephant in the room: TPP

ü To provide a platform for intergovernmental, B2G And B2B dialogues possibly leading to enhanced regional cooperation


Mia [email protected]

Thank you for your attention!

un escap research on global value chains · trade,investment’and’innovation’division research...

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