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Economic Growth,
Convergence, and
Agricultural Economics
Will Martin (IFPRI)
Discussion by
Daria Taglioni (IFC)
September 27, 2018
Is the GVC
model a
game
changer?
• Many success stories of recent industrialization had a common ingredient—import-to-export (I2E):
• The IMPORTING side: GVCs deliver easier access than ever before to capital, technology, skills, know-
how, tacit knowledge, and the competitive pressure to produce at world-class standards is higher
• The EXPORTING side: GVCs allow to solve a paradox—specialize and reach scale thanks to the access
to global markets
Source: Taglioni and Winkler (2016, 20).
Does the GVC
model let
developing
countries
grow fast?
Source: Taglioni and Winkler, 2016, 28
A smaller
share of a
larger pie
Source: Cusolito, Safadi and Taglioni, 2016
Domestic value added embodied in gross exports, Vietnam
Why have
Latin America
and Africa
been
bypassed?
Source: Taglioni and Winkler, 2016, 28
Thank you
dtaglioni@ifc.org

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Daria Taglioni - Economic growth, convergence, and agricultural economics

  • 1. Economic Growth, Convergence, and Agricultural Economics Will Martin (IFPRI) Discussion by Daria Taglioni (IFC) September 27, 2018
  • 2. Is the GVC model a game changer? • Many success stories of recent industrialization had a common ingredient—import-to-export (I2E): • The IMPORTING side: GVCs deliver easier access than ever before to capital, technology, skills, know- how, tacit knowledge, and the competitive pressure to produce at world-class standards is higher • The EXPORTING side: GVCs allow to solve a paradox—specialize and reach scale thanks to the access to global markets Source: Taglioni and Winkler (2016, 20).
  • 3. Does the GVC model let developing countries grow fast? Source: Taglioni and Winkler, 2016, 28
  • 4. A smaller share of a larger pie Source: Cusolito, Safadi and Taglioni, 2016 Domestic value added embodied in gross exports, Vietnam
  • 5. Why have Latin America and Africa been bypassed? Source: Taglioni and Winkler, 2016, 28