Distributive Profiles Associated with Domestic versus International Specialization in Global Value Chains

Abstract

The present article sets out trends in functional income distribution implied by countries’ integration in Global Value Chains (GVCs), taking also into account interregional interactions (North-North, South–South and North–South). Through the application of an innovative input-output methodology, it quantifies inter-country differences in functional income distribution by means of a novel indicator to estimate the distributive profile associated with domestic vis-à-vis international specialization. The focus is on trade flows, and the analysis carried out allows to single out the distributive implications of alternative regional integration projects, in view of a more inclusive multilateral trade system.