GLOBAL VALUE CHAINS IN SERVICES - A NEW OPPORTUNITY FOR DEVELOPING COUNTRIES

Abstract

This paper argues in favour of increasing the participation of developing countries in global value chains in services, given the facilities offered by digital technologies in trading services and the current global economic situation marked by the pandemic. The analysis highlights the increasing contribution of services in achieving the key economic development indicators, as well as in global value chains, the role of digital technologies in supporting the service components of global value chains and indicators for measuring the performance of global value chains of services. From the perspective of the possibility of obtaining net benefits from an increased participation of developing countries in global value chains in the growing service segments, the paper provides arguments to support economic policy decisions in these countries in favour of prioritizing the investments in human capital and the necessary technological infrastructure, as well as the reconsideration of regulations on foreign trade in services.

Keywords

• global value chains
• services
• digital technologies
• developing countries
• benefits