Top Highlights

• What explains the region’s weak insertion in GVCs? Public goods such as high-quality transportation infrastructure, reliable communications networks, and efficient customs processes are critical for the coordination of complex relationships among firms and the efficient exchange of products and services that characterize GVCs.
• All LAC countries could realize considerable gains in the number of multinational corporation affiliates by improving their logistics infrastructure to the average level of the EU.
• Other issues such as customs-related trade costs, information constraints, and regulatory overlap also inhibit LAC’s participation in value chains—issues that too often receive inadequate attention of policymakers.

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