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Global value chains: New evidence for North Africa

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  • Del Prete, Davide
  • Giovannetti, Giorgia
  • Marvasi, Enrico

Abstract

This paper analyzes the participation and the position of North African countries in global value chains (GVCs). Exploiting the recently released Eora multiregional Input-Output tables, we describe regional and country GVC involvement. North African countries have not so far been able to fully integrate into international production networks. However, a large part of their (low) trade is due to value added related activities, mainly in the upstream phases, and the importance of foreign linkages has been increasing over time. We complement the Input-Output analysis with sectoral evidence from selected case studies and policy experiences. Overall, our results suggest that enhancing the GVC participation of North African countries has potential to substantially benefit local industries, countries and indeed the whole area. However, the ability to retain such benefits relies on specific local conditions, such as a favorable environment for foreign investments, and lower trade barriers, thus leaving room for policy intervention.

Suggested Citation

  • Del Prete, Davide & Giovannetti, Giorgia & Marvasi, Enrico, 2018. "Global value chains: New evidence for North Africa," International Economics, Elsevier, vol. 153(C), pages 42-54.
    • Handle: RePEc:eee:inteco:v:153:y:2018:i:c:p:42-54
    DOI: 10.1016/j.inteco.2017.03.002
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    1. Jean Balié & Davide Del Prete & Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2017. "Agriculture and Food Global Value Chains in Sub-Saharan Africa: Does bilateral trade policy impact on backward and forward participation?," Working Papers 4/17, Sapienza University of Rome, DISS.
    2. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    3. Armando Rungi & Davide Del Prete, 2017. "The 'Smile Curve': where Value is Added along Supply Chains," Working Papers 05/2017, IMT School for Advanced Studies Lucca, revised Mar 2017.
    4. Colovic, Ana & Misganaw, Bisrat A. & Assefa, Dawit Z., 2022. "Liability of informality and firm participation in global value chains," Journal of World Business, Elsevier, vol. 57(1).
    5. Davide Del Prete & Giorgia Giovannetti & Enrico Marvasi, 2017. "Global value chains participation and productivity gains for North African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(4), pages 675-701, November.
    6. Gniniguè, Moukpè & Wonyra, Kwami Ossadzifo & Tchagnao, Abdou-Fataou & Bayale, Nimonka, 2023. "Participation of developing countries in global value chains: What role for information and communication technologies?," Telecommunications Policy, Elsevier, vol. 47(3).
    7. González-Ramírez, María Guadalupe & Santoyo-Cortés, Vinicio Horacio & Arana-Coronado, José Jaime & Muñoz-Rodríguez, Manrrubio & Albis-Salas, Nadia, 2023. "Global traders and the integration of Chile and Mexico into the configuration of the global value chain of berries," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 26(2), February.
    8. Rym Ayadi & Giorgia Giovannetti & Enrico Marvasi & Giulio Vannelli & Chahir Zaki, 2022. "Demand and supply exposure through global value chains: Euro‐Mediterranean countries during COVID," The World Economy, Wiley Blackwell, vol. 45(3), pages 637-656, March.
    9. Makrem Ben Doudou & Ridha Nouira & Sami Saafi & Aram Belhadj, 2022. "Do exchange rate changes have threshold effects on the trade balance? Evidence from Tunisia," Economic Change and Restructuring, Springer, vol. 55(1), pages 511-537, February.
    10. Anja Slany, 2019. "The Role of Trade Policies in Building Regional Value Chains – Some Preliminary Evidence From Africa," South African Journal of Economics, Economic Society of South Africa, vol. 87(3), pages 326-353, September.
    11. Takpara, Moukaila Mouzamilou & Fouopi Djiogap, Constant & Sawadogo, Bouraima, 2022. "Trade Policy and African Participation in Global Value Chains: Does Trade Facilitation Matter?," Conference papers 333499, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Bhushan Praveen Jangam & Hari Venkatesh & Aviral Kumar Tiwari, 2024. "Global value chains and economic growth: A study of resilience during the COVID‐19 pandemic," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(4), pages 2096-2128, May.
    13. Sunghun Lim, 2021. "Global Agricultural Value Chains and Structural Transformation," NBER Chapters, in: Risks in Agricultural Supply Chains, pages 29-57, National Bureau of Economic Research, Inc.
    14. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    15. Nidhi Bagaria, 2022. "Analysing Opportunities for India in Global Value Chains in Post COVID-19 Era," Foreign Trade Review, , vol. 57(3), pages 261-282, August.
    16. Asanka Wijesinghe & Chathurrdhika Yogarajah, 2022. "Trade Policy Impact on Global Value Chain Participation of the South Asian Countries," Journal of Asian Economic Integration, , vol. 4(1), pages 24-48, April.
    17. Ajide, Folorunsho M. & Sakariyahu, Rilwan & Lawal, Rodiat & Etudaiye-Muhtar, Oyebola Fatima & Johan, Sofia, 2023. "Mobile money innovation and global value chain participation: Evidence from developing countries," Finance Research Letters, Elsevier, vol. 58(PD).
    18. Ayadi, Rym & Giovannetti, Giorgia & Marvasi, Enrico & Zaki, Chahir, 2024. "Trade networks and the productivity of MENA firms in global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 10-23.
    19. Federico Carril‐Caccia & Elena Pavlova, 2020. "Mergers and acquisitions & trade: A global value chain analysis," The World Economy, Wiley Blackwell, vol. 43(3), pages 586-614, March.
    20. Ilaria Fusacchia & Jean Balié & Luca Salvatici, 2022. "The AfCFTA impact on agricultural and food trade: a value added perspective," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 49(1), pages 237-284.
    21. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    22. Abdulkareem Alhassan & Joshua Dzankar Zoaka & Salim Hamza Ringim, 2021. "Africa as headwaiter at the dining table of global value chains: Do institutions matter for her participation?," African Development Review, African Development Bank, vol. 33(3), pages 560-576, September.
    23. Eduardo Rodrigues Sanguinet & Augusto Mussi Alvim & Miguel Atienza, 2022. "Trade agreements and participation in global value chains: Empirical evidence from Latin America," The World Economy, Wiley Blackwell, vol. 45(3), pages 702-738, March.
    24. Zhiheng Wu & Guisheng Hou & Baogui Xin, 2020. "The Causality between Participation in GVCs, Renewable Energy Consumption and CO 2 Emissions," Sustainability, MDPI, vol. 12(3), pages 1-26, February.
    25. Reddy, Ketan & Sasidharan, Subash, 2024. "Global value chains, productivity and markup: Evidence from India," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 250-271.

    More about this item

    Keywords

    International production networks; Global value chains; Multi-Regional Input-Output tables; North Africa;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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