Connectivity and Global Value Chain Participation: Cost and Capability Considerations

This issue of Commonwealth Trade Hot Topics presents new findings from an up-to-date empirical analysis of trade costs across Commonwealth member countries and their subsequent interaction with Global Value Chain (GVC) participation, as currently defined. Focusing on small states in the Pacific, Caribbean and sub-Saharan Africa (SSA), the analysis first uses a metric which provides an overall indication of trade costs derived from a global trade costs database across sectors and then between countries. Subsequently, it explores GVC participation based on analysis of changes in value added in exports. Finally, it analyses institutional variables related to logistic capabilities which can be directly influenced by policy.