This paper is the first to create a comprehensive mapping of the Global and Regional Value Chain participation for Georgia and other CAREC region countries using the Eora Multi-Regional Input-Output Model (MRIO). The paper was written with support from the CAREC Think Tank Network Research Grant.
Mapping Global and Regional Value Chains (GVCs and RVCs) participation of particular countries and/or country groups is an essential tool for understanding the structure and the driving forces behind global and regional trade. While many studies measure the GVC and RVC participation indices for OECD and some non-OECD countries, the CAREC (Central Asia Regional Economic Cooperation Program) countries were until now never studied as a separate group. This paper is the first one to create a comprehensive mapping of the GVCs and RVCs for the CAREC region by using the Eora multi-regional input-output (MRIO) model. This research paper further contributes to the empirical literature on RVC by assessing the trade linkages between countries in this group, and empirically identifies policy factors that may be associated with RVC participation at the country level. In addition, this paper presents case studies of particular industries in order to explain and supplement the empirical findings; these are particularly useful for the evidence-based trade policy of the CAREC countries.