Some Applications of tralac’s Value Chain Database
Cross-border value chains are a form of trade in which intermediate value (whether product or service) passes from one country to another, to be beneficiated by the recipient country either for final export or export as beneficiated intermediate product. Since cross-border value chain participation allows specialisation of a component of the production process, without mastery of the entire production process, it is a potential entry point by developing countries into manufacturing activity that results in value-adding industrialisation. For this reason, analysing within the data can lead valuable insights about the potential entry points into value chains both between peers (typically regional value chains) and hierarchically (typically global value chains).
This brief follows on from a previous brief entitled ‘Introducing tralac’s value chain database’ (Stuart 2023). It is intended to showcase several applications of the use of the database, when integrated with additional data dimensions such as REC membership, sub-region, development status (LDC or not), export speciality, revealed comparative advantage (RCA) and export diversification. The data can be used to gain insights into trade and industrial policy formulation and implementation, especially in light of the unfolding African Continental Free Trade Area (AfCFTA).
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