International Economics

<< N°166

Issue Q2 2021  
The impact of regulatory distance from global standards on a country’s centrality in global value chains  
Tomohiko Inui
Kenta Ikeuchi
Ayako Obashi
Qizhong Yang
We examine whether and how a country’s centrality in global value chains (GVCs) is dependent upon the extent to which its regulatory regime differs from the global norm, using country and sector-level data from OECD and UNCTAD. We find that the more similar a country’s regulatory regime is to global standards the more likely the country is to play a dominant role in GVCs. Our findings suggest that a country could enhance its centrality in GVCs by harmonising a set of technical regulations to the global standards.

Non-tariff measure ; Regulatory distance ; Centrality in global value chains ; Keywords
F13 ; F14 ; JEL classification
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