Global Value Chains, Productive Development Policies and Job Creation

Abstract

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.