Programme 2021

Thursday 25 February, 17:00

(Central European Time – CET, GMT+1)

Global Value Chains: Some New Challenges and Opportunities

“The focus on Global Value Chains, building on the innovative initiative to develop the World Input-Output Database, has renewed interest in input-output analysis (IOA). The task ahead is to sustain this momentum and to more firmly and extensively integrate IOA in other parts of economics. The main focus of the presentation will address some new challenges and opportunities with especial focus on the following. The Rebuilding Macroeconomic Theory Project (RMTP) has presented some responses to the failures of macroeconomic models to forecast and interpret the Great Recession and IOA has a potentially important role to play. Additional opportunities exist to connect to the evolving New Economic Geography and the Fragmentation literatures to enhance their generality and to integrate IOA by providing enhanced insights into the role of economic structure. Little work has been done to link GVCs with notions of risk and resilience as more countries and regions become embedded in the global production system. There is a further additional opportunity to connect with Smart Specialization Strategy (S3) and EU regional development policy in more creative ways. While a great deal of attention has been directed to trade in value added (TiVA), much less attention has been directed to the notion of Trade in Human Capital (TiHC), essentially addressing movement of people between countries and regions and linking it to TiVA. Finally, there is an important opportunity to address one major problem in the RMTP, namely agent heterogeneity, and the impacts of GVCs on income distribution.”

Geoffrey J. D. Hewings

- Professor, University of Illinois