The United States, Asia and Europe were three production centers in the global value chain for bulk trade of parts, a report said on Monday.
Released by the World Bank, the World Trade Organization and the Organization for Economic Co-operation and Development, the report aimed to provide solutions to uneven distribution under economic globalization, as well as to provide suggestions for developing countries to benefit from globalization.
The Chinese mainland, Japan and South Korea were deeply involved, along with Germany, the report said.
The report said geological location was a crucial factor in the big role those countries played in the global value chain.
All the developing economic entities, apart from the Chinese mainland, were on the outskirts of the three centers. And they tended to establish trade with the center most close to them geologically, according to the report.
However many developing economies barely participated in the global production network or value chain, including countries in Africa, which are far from any of the centers above, it said.
Trading cost, instead of tax, was the biggest barrier for developing economies to participate in the value chain, the report said.
Transportation expenses, insurance premium and other charges related with cross-border business were higher than any existing import tariff, it said.
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