Industrializing across Global Value Chains 95
GVC integration (%)
Figure 4.3 Links to All Manufacturing GVCs, by Country Group 100 90 80 70 60 50 40 30 20 10 0 –10 –20
59 55 45
23
37
All nonresource rich
Non-oilresource rich
Oil exporters
Non-resourcerich MICs
33
Non-resourcerich LICs
Backward integration 2015
Forward integration 2015
∆ GVC participation 2015–1995
∆ Backward integration 2015–1995
∆ Forward integration 2015
Benchmark group
GVC participation 2015
Source: Abreha et al. 2019. Note: GVC = global value chain; LICs = low-income countries; MICs = middle-income countries.
while rising by 10 percent in minerals and metals exporters (non-oil-resource rich) and 6 percent in the external comparators. Therefore, minerals and metals exporters were integrating into manufacturing GVCs more than the external comparators during that period. Oil exporters and minerals and metals exporters show higher forward links compared with non-resource-rich countries, whereas non-resource-rich countries have higher backward links relative to the other two groups. This evidence suggests that the higher forward links are potentially associated with exports of natural resources, which in turn explains a significant part of the higher GVC participation rates of oil exporters and minerals and metals exporters. Thus, the FVA content of exports of countries endowed with natural resources tends to be low, whereas the DVX tends to be high, predominantly constituting exports of low-value-added oil, minerals, and metals.
Resource Endowment and Participation in Manufacturing GVCs Variation between Oil Exporters, Minerals and Metals Exporters, and Non-Resource-Rich Countries
In the non-resource-rich group, Rwandan manufacturers have greater linkage rates to GVCs in aggregate compared with their counterparts in Malawi, Senegal, and Uganda. However, backward links are stronger in Uganda and