The impact of global value chains on the dynamics and structure of world trade

Abstract

This paper examines the impact of global value chains (GVCs) on the dynamics and structure of world trade, taking into account current global economic trends and challenges. The analysis of globalization processes in the world economy reveals that GVCs have evolved in parallel with globalization itself, serving as a critical foundation for the development of the global economic system. GVCs interconnect the processes of social reproduction in individual countries and regions into a global network of production, services, and product consumption. Their role as a system-forming factor lies in integrating national economies into the global economy by facilitating international labor division, global logistics, and product distribution.
Global value chains enable enterprises controlling their key segments to optimize resource utilization, reduce production and distribution costs, and expand access to end markets. Moreover, GVCs function as a mechanism for creating added value, which acts as a strategic benchmark for enterprises pursuing production modernization, workforce upskilling, and innovation implementation.
The study also explores the structure of value chains within national economies and demonstrates that their development contributes to economic growth, technological progress, and improved national welfare—effects particularly visible in developing countries. GVCs foster economic modernization and enhance both resilience and prosperity at the national level.
Furthermore, an analysis of structural shifts between categories of technological stages in value chains shows their correlation with global price fluctuations and economic activity cycles, often mirroring broader economic crises. At present, we observe a gradual convergence of production and export profiles among industrially developed nations. These countries are reconfiguring their production chains, increasing both raw material output and exports, while maintaining a positive trajectory in high-tech product exports. For developing economies, GVCs represent a vital driver of economic advancement. Their high-tech industrialization enables some to narrow the gap in export potential and, in time, to approach the levels of socioeconomic development observed in advanced economies.