Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296777 
Year of Publication: 
2023
Series/Report no.: 
ADBI Working Paper No. 1382
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This study investigates the patterns of global value chain (GVC) participation of Pacific island countries (PICs) at the country, industry, and firm levels, utilizing UNCTAD-Eora GVC data (1999-2018) and the World Bank's Enterprise Survey data (2009 and 2015). It also uses the survey data to examine the relationship between firm and country characteristics and firm-level GVC participation. At the country level, the study found a limited role of the PICs in global and regional production networks, hindering foreign technological and knowledge transfer, industrialization, and economic development, while, at the industry level, the PICs generally engage in low-value-added activities. The firm-level analysis reveals that the PICs' domestic firms, particularly SMEs, face difficulties joining value chains. Although firm characteristics, i.e., labor productivity and quality certification, are essential for firms to engage in GVCs initially, they are insufficient to deepen the GVC participation level. The analysis also emphasizes the significance of macro-level business-enabling environment factors, including good governance, trade openness, and foreign direct investment.
Subjects: 
global value chain
islandness
Pacific island
production network
trade in value added
JEL: 
F13
F14
O24
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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