The income created within Global Value Chains has doubled, on average, over the last 15 years; in China, income associated with GVCs has grown 6-fold. In the area of development aid, donors also increasingly recognise the importance of participation and upgrading in GVCs for private sector development.
Within GVCs the value created by the growing services sector is essential to our economy and society. Teachers, lawyers, architects and medical staff are all service providers, while businesses use the services of specialists in areas such as transportation, information technology and accounting. The services sector represents almost 50% of global trade in advanced economies and a growing share globally, employs the most workers in major economies and creates more new jobs than any other sector.
Through international trade, services can transcend national borders and compete in global markets. Trade in services drives the exchange of ideas, know-how and technology. It helps firms cut costs, increase productivity and boost competitiveness, while consumers benefit from lower costs and greater choice. But international trade in services remains restricted by many barriers, because of the importance of services to developing value and jobs for our economies, it is essential to identify and overcome these barriers.
- Expanding services trade offers major opportunities for growth and jobs
- Global Value Chains (GVCs)
- OECD Initiative on Global Value Chains, Production Transformation and Development
- Measuring Trade in Value Added: An OECD-WTO joint initiative
- Services trade
- OECD work on trade
- The Transatlantic Economy 2014
Study co-authored by Daniel S. Hamilton and Joseph P. Quinlan, 26 March 2014
- New Pact for Europe: First Report, Strategic Options for Europe's Future, December 2013
A publication of the King Baudoin Foundation, the Bertelsmann Stiftung and the European Policy Centre (EPC)
- James Bacchus, Chair, Commission on Trade and Investment Policy, International Chamber of Commerce (ICC)
- Sharan Burrow, General Secretary, International Trade Union Confederation (ITUC)
- Roberto Azevêdo, Director-General, World Trade Organization
- Tim Groser, Minister of Trade, Minister for Climate Change Issues and Associate Minister Foreign Affairs, New Zealand
- Tadayuki Nagashima, Executive Vice-President, Japan External Trade Organization (JETRO)
- Peter Robinson, President and CEO, United States Council for International Business (USCIB)