We show that traditional gravity variables play a significant role in explaining trade flows related to global value chain participation. We find evidence that cooperation costs – measured by linguistic and geographical proximity – are more relevant for trade that reflects cross-border...

Could foreign direct investment (FDI) contribute to improving developing countries' participation in global value chains (GVC)? This is the main issue addressed in this paper. Indeed, FDI seems to be, at least theoretically, a mean to speed up developing countries' participation in GVCs in a...