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global trade growth during the period prior to the global crisis and a major factor contributing

to recovery from the global crisis.

Figure 6: Evolution of the Share of Developing Countries in World Exports

Source: ITC Trade Map

Fourth pattern in global trade is the maturation of global value chains (GVCs). Increasing

participation to the GVCs in particular of the developing countries was a key factor driving the

dramatic increase in developing countries’ trade and in turn the world trade in the period prior

to the global crisis. However, a recent trend has been the slowing pace of global value chains,

which has negative impacts on world trade growth. The shift to domestic production of

intermediate inputs by China, Japan and US firms contributed to the slowdown in GVCs.

Figure 7 below illustrates evolution of foreign value added in production (FVA) and domestic

value added in production (DVA) as a percentage of exports. FVA which is considered as a key

measure of GVCs increased steadily until 2010. However growth of FVA declined in 2015-2016

period and remained weak in 2017 where the share of FVA in total exports declined to 30 per

cent. This represents a reversal in increasing trend of FVA.

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Figure 7: Evolution of Value Added in Global Trade, 1990-2017 (trillions of dollars and

per cent)

Source: Reprinted from “World Investment Report, 2018, Investment and New Industrial Policies” UNCTAD.

Retrieved from

https://unctad.org/en/PublicationsLibrary/wir2018_en.pdf

.

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UNCTAD, World Investment Report 2018

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

per cent

Developing Countries' exports as % of World Exports

South-South Exports as % of Total Developing Countries' Exports