International Trade and Global Value Chains
Since the 1990s, achieving integration into the world economy through international trade and foreign direct investment (FDI) has been a central focus of development strategies in the countries of the Global South.
Yet within the last decade, the global business environment has significantly changed. Firstly, the key drivers of growth have moved from the Triad (United States, European Union and Japan) to major “emerging and developing countries”, most notably to China. Secondly, the integration of various countries into free trade zones as well as the conclusion of international investment agreements have changed the economic environment for Global South countries. Thirdly, the increasing organisation of production processes in the form of global value chains has had significant implications for the possibilities and limitations of export-oriented developing strategies.
In light of these developments, ÖFSE focuses on the question of how international trade and FDI can support inclusive and poverty reducing economic development. Furthermore, ÖFSE examines which policies of both partner and donor countries are necessary to achieve this.
Here, the focus currently lies on two topics:
- Global value chains (GVCs)
- EU trade policy and regional free trade agreements