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Global value chains and Aid for Trade: an African perspective

Written by Jodie Keane

Although global value chains (GVCs) have existed for decades now, interest in the literature has reignited in recent years, particularly since the global financial crisis. Policy makers have sought to better understand the dynamics and governance of GVCs as well as the opportunities and constraints that this type of trade poses for firms in the various stages of participation. Since the fragmentation of production means that global trade is now characterised by trade in tasks, it is important for policy makers in sub-Saharan Africa (SSA) to identify potential GVCs in which they can effectively participate, as well as obtain a better position within existing GVCs and improve outcomes over time.