1st Edition

Harnessing Global Value Chains for regional development How to upgrade through regional policy, FDI and trade

By Riccardo Crescenzi, Oliver Harman Copyright 2023
    120 Pages 9 B/W Illustrations
    by Routledge

    This Regional Studies Policy Impact Book brings together the latest academic evidence and public policy insights with global value chains (GVCs) and foreign direct investment (FDI). It comprises a comprehensive description and explanation of why they matter for regional development and policy. It focuses on how sub-national regions can leverage them for innovation and upgrading, or "levelling up". Specifically, its attention is on how regions can build, embed and reshape GVCs to their local enhancement.

    The book makes the case for proactive sub-national public policy, on the engagement of GVCs. Vertically engaging with FDI rather than setting the ground and letting manna drop from heaven. Its chosen approach is three-fold. First, it looks at why. Why GVCs and FDI matter and why sub-national policymakers should focus their attention on upgrading. It critically reviews different streams of research and evidence. This is in order to identify key definitions and conceptual foundations for the analysis of the link between GVCs, FDI and innovation at the sub-national and local level. Second, it looks at what. This is through new conceptualisations and critical insights on the regional drivers and impacts of global connectivity, bridging macro-international and micro-firm level approaches. Third, is the critical how. How policymakers can leverage GVCs and FDI for their regional benefit. It aims to review empirical evidence and available policy evaluation in order to highlight what works (and what does not) when leveraging these concepts to shape public policies with particular reference to less developed regions.

    If the above is of interest, then the book is for you. It is based on leading academic literature but uses non-technical language throughout making it engaging for policymakers, researchers and students alike.

    1. Introduction 2. Why do GVCs matter for regions: Key concepts, definitions and trends 3. How to upgrade through regional policy: building GVCs through FDI 4. How to upgrade through regional policy: embedding GVCs through FDI 5. How to upgrade through regional policy: reshaping GVCs through FDI 6. Looking to the future and useful tools for leveraging GVCs


    Riccardo Crescenzi is a Professor of Economic Geography at the London School of Economics and Political Science (LSE), UK.

    Oliver Harman is a Cities Economist for the International Growth Centre’s (IGC) Cities that Work initiative based at the Blavatnik School of Government, University of Oxford, UK, and Associate Staff at the London School of Economics and Political Science (LSE), UK.

    "The new frontier for regional policy makers is to understand how the recent reshaping of trade, investment flows and GVCs through pandemic and conflict will affect regional innovation capabilities. This important new book brings together key insights from the most recent research to provide tools to understand these changes. It should be essential reading for anyone interested in developing regional policies to manage the green transition and disruptive technological change in a rapidly changing world." — Peter Berkowitz, Director - Policy, Directorate General for Regional and Urban Policy, European Commission

    "Often national policies neglect existing country interdependencies through trade and globalization. This book shows how subnational policies can go beyond insights from country by country analyses that assume that each economy is isolated from the others and that markets of products and factors are isolated from one another. It shows that once we factor in the degree of integration among countries through trade and production networks new opportunities can be identified for driving up local competitiveness and value addition using trade and FDI. It is a timely new book shares how reforms and policy change can harness GVCs, blending academic evidence with practitioner lessons. Changing the paradigm of subnational policies is a core message in this book. The policy recipes in this book can inform readers how to act upon GVC’s potential—boosting growth, creating better jobs and reducing poverty." — Daria Taglioni, Research Manager, Trade and International Integration, Development Research Group, The World Bank.