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Key variables regarding participation and distance

Key variables regarding participation and distance

In order to better understand which elements influence a country’s or bloc’s positioning in GVCs, it is useful to analyse factors which can be influenced by policy-makers. The logic is simple – apart from structural factors, which cannot be easily changed, there may be other factors which can be modified by political actors, and which have an impact on GVC position.

A European Centre for International Political Economy study: Positioning on the Global Value Chain Map: Where do You Want to Be?, analysed 58 countries against a set of policy variables in order to find those with a significant correlation to participation rate or the distance of final demand (both describe the country’s position in the GVCs). The following results were obtained:

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