BATModel’s Highlight | #04

BATModel’s Highlight | #04

Data and Indicators for Global Value Chain Analysis

The international fragmentation of production has increased countries’ and firms’ specialization to the level of tasks or stages of the production process (the “great unbundling”). With production units increasingly focusing on specific tasks rather than on the entire production process, there is a need to combine and coordinate all the different activities carried out at the international level. This includes locating those tasks where it is most efficient and trading the related intermediate products for further processing and assembly: modern global trade is in “tasks” rather than “goods” (Grossman & Rossi-Hansberg, 2008). This structural change in world production and international trade has brought about new implications and gains and created new winners and losers. This new paradigm also changed how economists and policymakers think (or should think) about trade and trade policy issues. Thanks to trade liberalization and technological advancements, the retail and food industries became globalized, and the agri-food sector was greatly impacted by these transformations, establishing the so-called agri-food global value chain (GVC). In the agri-food GVC, perhaps even more than in some other sectors, the globalization process was associated with the market concentration and the diffusion of private standards often imposed by large corporations or simply necessary as a condition to guarantee specific quality requirements and integrate into the international supply chain. The result of this process has been an increased merchants’ and agribusiness market strength within GVCs, which in turn created issues in terms of welfare.

Enrico Marvasi

Enrico Marvasi

URoma Tre University

Member of Work Package 4 – Global Valeu Chains