Trade via global value chains (GVCs) has reached historical highs in 2024. Its share in global GDP remained stable at around 17% in real terms between 2022 and 2024 (i.e. adjusted for inflation), up from about 16% in 2008, prior to the Global Financial Crisis.
Sectors have responded differently to changes in global trade and trade policy, with some increasing and others reducing their reliance on imported inputs between 2011 and 2024. Trade via GVCs remained particularly high in manufacturing and transport-related industries. The manufacture of coke and refined petroleum products was the sector relying most on trade via GVCs at both the beginning and end of the period. The motor vehicles industry reduced its reliance on imported inputs between 2011 and 2024, falling from 6th place in 2011 to 10th by 2024. By contrast, the pharmaceutical industry became more globally integrated over the same period.
Participation in global value chains has increased in most economies. In 2024, 49 of 80 economies covered in the report recorded a higher foreign value-added (VA) share in exports than in 2011. In the post-pandemic period, changes in the structure and composition of GVCs also contributed to higher levels of foreign VA in trade.
Multinational enterprises (MNEs) play a central role in GVCs. Domestic MNEs and their foreign affiliates established abroad together account for more than half of world exports. Around 85% of foreign affiliate production is in the hands of OECD-headquartered MNEs.
Foreign affiliate production is comparable in scale to world trade. In 2023, the gross output of foreign affiliates reached about USD 25.6 trillion, only slightly lower than the total value of world trade in goods and cross-border trade in services (USD 26.6 trillion). This represents one quarter of global GDP. Together, trade and foreign affiliate production account for 45% of global GDP (removing the double counting corresponding to exports of foreign affiliates).
Foreign affiliate activity is concentrated in manufacturing and selected services such as finance, information and communication and business services.
Services are a growing dimension of GVCs. Between 2011 and 2023, services trade grew faster than goods trade, whether measured through cross-border supply or the sales of foreign affiliates (i.e. services supplied through commercial presence). Adding cross-border trade and foreign affiliate activity, trade in services accounts for 21% of global GDP (removing the double counting corresponding to exports of foreign affiliates).
Trends in Global Value Chains
