Global Value Chains, Productive Development Policies and Job Creation

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As Latin America’s role in global value chains (GVCs) expands, a new set of issues has emerged regarding how the region can maximize its potential gains from engaging in the global economy. Central to this challenge is how countries can move up the value chain by engaging local firms, assimilating new knowledge and improving employment conditions, with appropriate policies and institutions to facilitate economic, social and environmental upgrading. The various examples of GVC participation in Latin America reviewed in this chapter highlight multiple options that countries could consider in trying to improve their global competitiveness. Several targeted recommendations are provided that highlight what countries in the region can do to improve their positions in GVCs.








Gary Gereffi

Professor Emeritus of Sociology

Gary Gereffi is Emeritus Professor of Sociology and Director of the Global Value Chains Center at Duke University (  He has published over a dozen books and numerous articles on globalization, industrial upgrading, and social and economic development, and he is one of the originators of the global value chains framework.  His most recent books are:  Handbook on Global Value Chains (co-edited by Stefano Ponte, Gary Gereffi and Gale Raj-Reichert), Cheltenham, UK: Edward Elgar Publishing. 2019); and Global Value Chains and Development: Redefining the Contours of 21st Century Capitalism (Cambridge University Press, 2018).  Current projects include:  (1) the impact of U.S. protectionism on jobs and regional trade agreements; (2) evaluating how the digital economy and Industry 4.0 are likely to affect international business strategies and industrial upgrading; and (3) shifting regional interdependencies in East Asia and North America, with a focus on China, South Korea and Mexico vis-à-vis the United States.

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