"International trade expanded rapidly after 1990, powered by the rise of global value chains (GVCs). This expansion enabled an unprecedented convergence: poor countries grew faster and began to catch up with richer countries. Poverty fell sharply.
These gains were driven by the fragmentation of production across countries and the growth of connections between firms. Parts and components began crisscrossing the globe as firms looked for efficiencies wherever they could find them. Productivity and incomes rose in countries that became integral to GVCs … .
… GVCs can continue to boost growth, create better jobs, and reduce poverty, – provided that developing countries undertake deeper reforms and industrial countries pursue open, predictable policies."
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Source: “World Bank. 2020. World Development Report 2020 : Trading for Development in the Age of Global Value Chains. Washington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/32437 License: CC BY 3.0 IGO.”