Participation of Kazakhstan in Global Value Chains

Global value chains (GVCs) shape the new realities of production organization. Multicomponent products are designed in one country, their components are manufactured in another, and assembled at the final destination. Today, two-thirds of global trade is accounted for GVC. In this regard, World Trade Organization has proposed producing statistics on international trade on value-added basis in order to share the value that was added to product at each stage of the value chain between all of the participants. To analyze participation in GVC, it is proposed to use backward and forward participation ratios. Backward participation ratio refers to contribution made by foreign components to the value of exported product. Forward participation ratio represents to what extent local components are included into the value of foreign products. Kazakhstan demonstrates rather low backward participation ratio (about 6%) and high forward participation ratio (about 80%). It is explained by the fact that country's economy focuses on natural resources exports and occupies a leading position in primary production for GVC. Investments attracted by Kazakhstan were forwarded to the primary sectors of economy, only a small part of them was used to promote production for GVC. Automotive industry is a successful example of integration into GVC. Further analysis also shows that Kazakhstan participates in the lowest links of GVC, which calls for adoption of necessary policies and directives in order to provide conditions for various sectors of the economy to move up the value chain.

глобализация, этапы производства, добавленная стоимость, коэффициенты участия, сырье, ресурсы, экономика, globalization, stages of production, value added cost, participation ratios, raw materials, resources, economics, жаһандану, өндіріс кезеңі, қосылған құн, қатысу коэффиценті, шикізат, ресурстар, экономика

1. OECD, WTO and UNCTAD. Implications of global value chains for trade, investment, development and jobs. August 2013: https://unctad.org/en/PublicationsLibrary/unctad_oecd_wto_2013d1_en.pdf.

2. World bank. Global value chain development report 2019: technological innovation, supply chain trade and workers in a globalized world. April 2019: https://www.worldbank.org/en/topic/trade/publication/global-value-chain-development-report-2019.

3. Asian Development Bank. Key indicators for Asia and the Pacific 2018. September 2018: https://www.adb.org/sites/default/files/publication/443671/ki2018.pdf.

4. https://comtrade.un.org/.