Global value chains and world trade: Prospects and challenges for Latin America

Scant empirical evidence is available on how the Latin American and Caribbean region participates in global value chains (GVCs) and what drives this process. Frequent questions in this connection are: How has the spread of information and communications technologies and free trade agreements facilitated the region’s participation in GVCs? To what extent do small firms participate in GVCs? What learning mechanisms and production and technological feedbacks operate in different types of GVCs? How can countries and firms take advantage of upgrading processes in GVCs? What role do policies play to influence these processes?