Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges

The present paper, based on a review of available literature and empirical evidence, has pointed out that the opportunities for the least developed countries (LDCs) to participate in the global values chains (GVCs) are expanding discernibly. However, the analyses show that the LDCs remain greatly handicapped in exploiting the full potential that the GVCs offer them due to their participation in low-value segment as well as the assymetric global governance structure of the value chains. Segment-specific analyses of participation in specific products indicate that the LDCs are facing multi-faceted challenges in the GVC process in terms of the production process, logistical and infrastructural requirements as well as complicated business processes. The paper has suggested some supportive measures, adoption of which could strengthen the position of the LDCs in GVCs, particularly in areas such as building productive capacity, development of trade-related infrastructure, access to inputs and logistical services, strengthening trade and industrial policies, and social upgrading.