Trade facilitation and Global Value Chains harmony

In recent decades, the development and expansion of Global Value Chains (GVCs) have offered the production process an international scale, with an increasing number of countries contributing to the production of a single final product. The prominence of emerging economies in global value chains is on the rise, despite persisting disincentives that hinder the growth of international trade. Hence, to mitigate these impediments and foster international trade growth, the Aid for Trade initiative is launched. This study seeks to discern the nexus between the implementation of the Aid for Trade initiative in emerging economies and its prospective influence on the performance of these nations within global value chains. Existing literature expresses a positive outlook on the influence of aid for trade on global value chains, attributing this impact to the reduction of trade costs across various sectors involved in these chains.

Keywords: aid for trade, global value chains, emerging economies