Global value chains: New evidence for North Africa

This paper analyzes the participation and the position of North African countries into global value chains (GVCs). Exploiting the recently released Eora multiregional Input-Output tables, we describe regional and country GVC involvement. North African countries have not been able so far to fully integrate into international production networks. However, large part of their (low) trade is due to value added related activities, mainly in the upstream phases, and the importance of foreign linkages has been increasing over time. We complement the Input-Output analysis with sectoral evidence from selected case studies and policy experiences. Overall, our results suggest that enhancing GVC participation of North African countries has the potential to substantially beneÖt local industries, countries and the whole area. However, the ability to retain such beneÖts relies on speciÖc local conditions, such as a favorable environment for foreign investments and lower trade barriers, thus leaving room for policy intervention.