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Review Article Open Access

Global Value Chain Evolution, Feature and Significance: Literature Review


In every firm, products are produced through the collective value adding activities starting from product concept development to product delivery to the consumers and value chain describes these whole collective activities of firms which is said to be “global” (Global Value Chain) when it involves different actors from two or more different countries. With the rise of the Global Value Chains paradigm, it is believed that the integration of developing countries into global production and marketing network are an opportunity for the advancement of their economic competitiveness and for the better access to global markets. And regarding the opportunities of GVCs for the developing country, several positive aspects of it have been mentioned many times in many research and reports like, advantages of concentrating in a specific production process instead of building the whole production process, employment opportunities creation through participating in GVCs. However, there is still a literature gap related to the social upgrading gained and social impacts of GVC on developing country. Therefore, this literature review aims to solve at the aforementioned information piece mill on GVC and avail comprehensive information on GVC with the special consideration of developing countries. For the purpose, desk review has been conducted on different published and unpublished research works with regards to GVC. To this effect, this paper through the intensive literature review on the GVC explored the literate gaps and has contributed to knowledge in the GVC relating to social upgrading and impacts in developing countries. At the result of this review social policy is needed strongly on equally distribution of economic and social opportunities outcomes from GVC participation.

Mereru W Rundassa and Daniel K Azene

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