How much do Central Asian countries participate in Regional Value Chains?

Abstract

This paper estimates the level of Central Asian countries’ participation in regional value chains (RVCs) and global value chains (GVCs) using data from the Eora multi-region input-output table. The contribution of foreign value-added to gross exports is low both absolutely and compared to baseline estimates for Southeast Asia. Moreover, despite their geographic, cultural, and historic closeness, Central Asian countries tend to be more integrated into GVCs, whereas RVCs are at a rudimentary stage. The high trade costs and uncertain trading environment at border-crossing points are among the reasons for underdeveloped RVCs in Central Asia.