Background paper

New Technologies, Global Value Chains, and the Developing Economies

Rodrik, D. 2018. New Technologies, Global Value Chains, and the Developing Economies. Pathways for Prosperity Commission Background Paper Series; no. 1. Oxford. United Kingdom

Technology and access to global value chains are seen as two key levers for development for many of the world’s poorest countries. Many developing countries, inspired by the Asian Tigers and looking at the transformative impact of mobile technology in the financial inclusion space are looking to craft policies and invest in development strategies that better connect them to the global economy. This paper suggests that the evidence of global value chains and their impact on development is mixed at best, and that technology, while good in some cases, may further disadvantage developing countries in the global export market. It suggests instead that countries focus on building up domestic markets and regional integration.