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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Tatiana Vorobeva
The Impact of Regional Integration on the Participation of Countries in Global Value Chains: the Case of the European Union
World Economy
(Bachelor’s programme)
2018
International fragmentation of production is one of the dominant trends in the world economy. Different production stages are located in different parts of the world, linking them with global value chains. Along with this, approaches to the definition of trade policy are being transformed: regional trade agreements granting special conditions for participating countries replace multilateral agreements. Today there is no consensus among experts on the relationship between the increase in the number of RTAs and the rapid development of the GVC. Some experts believe that the local nature of RTAs and the global reach of GVCs contradict each other. In this paper, the theoretical prerequisites for the relationship between regional integration and the development of GVCs were analyzed. Thus, a hypothesis about the presence of a positive correlation between the host country in the process and its integration into GVCs was formulated. Based on the analysis of the experience of European integration, using methods of econometric modelling positive correlation between the two phenomena was found. In particular, it was concluded that intraregional European integration contributes to economic development of regional production networks, while active interregional integration of the EU stimulates the involvement of European economies into the GVCs system.

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