Global Value Chains and Regional Value Chains
Picture:Courtesy of UNCTAD and International Trade
GVCs and RVCs are conduits for economic development.These chains take advantage of economies of scale and are effective in technology transfer.The AfCFTA is a deep agreement that will enable African countries to venture or increase the member states participation in global value chains as well as regional value chains.
Recent research is rejecting the long held perception that GVC are drawn to developing countries by the low cost of labour.On the contrary , for a country to attract FDI it has to be well endowed with factors of production as well as strong institutions.
GVCs in developed countries have increased gender inequality while in developing countries are contributors to economic inclusion however the women though employed do not get to experience personal growth in a GVC setting as they are confined to roles with repetitive tasks.
Please read my article below in the Herald as it unpacks the AfCFTA and GVCs.