Review of Value Chains: The New Economic Imperialism.

The influence of globalization on international competitiveness is considered in the article. Two strategies of economic growth are pointed out: the low road, that is producing more at lower cost and lower wages, with increasingly intensive exploitation of labor and environment, and the high road, that is upgrading capabilities in order to produce better basing on knowledge. Restrictions for developing countries trying to reach global competitiveness are formulated. Special attention is paid to the concept of upgrading and opportunities of joining transnational value chains. The importance of learning and forming social and political institutions for successful upgrading of the economy is stressed.

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International trade: Research of the reasons for the fall

Voprosy Ekonomiki ◽

10.32609/0042-8736-2019-1-79-91 ◽

2019 ◽

pp. 79-91 ◽

Cited By ~ 2

Author(s):

V. S. Nazarov ◽

S. S. Lazaryan ◽

I. V. Nikonov ◽

A. I. Votinov

Keyword(s):

Growth Rate ◽

International Trade ◽

Exchange Rate ◽

Global Economy ◽

Structural Changes ◽

Global Value Chains ◽

Value Chains ◽

Negative Contribution ◽

Basic Commodity ◽

The Impact

The article assesses the impact of various factors on the growth rate of international trade. Many experts interpreted the cross-border flows of goods decline against the backdrop of a growing global economy as an alarming sign that indicates a slowdown in the processes of globalization. To determine the reasons for the dynamics of international trade, the decompositions of its growth rate were carried out and allowed to single out the effect of the dollar exchange rate, the commodities prices and global value chains on the change in the volume of trade. As a result, it was discovered that the most part of the dynamics of international trade is due to fluctuations in the exchange rate of the dollar and prices for basic commodity groups. The negative contribution of trade within global value chains in 2014 was also revealed. During the investigated period (2000—2014), such a picture was observed only in the crisis periods, which may indicate the beginning of structural changes in the world trade.

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