KDI FOCUS Korea's Participation in Global Value Chains and Policy Implications 2015.07.16
□ The expansion of global value chains during the past 20 years has widened the gap between export value and domestic value added, diminishing the per-unit contribution of exports to the country’s economic growth. Thus, policies now need to target creating value added rather than increasing gross exports and focus on enhancing the competitiveness of input and production activities. In particular, regulatory reform must take place in the service sector to eliminate unnecessary obstacles to competitiveness. Moreover, to utilize global value chains more effectively, efforts should be made to enhance the efficiency of offshoring and attract production to the country’s shores in order to create more domestic valued added and jobs.
Ⅱ. Exports and Industrial Structures from a GVC Perspective
Ⅲ. Creation of Value added through GVC Participation
Ⅳ. Policy Implications
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