Globalization in Transition: The Future of Trade and Value Chains
The report by McKinsey Global Institute looks at globalization by measuring global flows of goods, services, finance and people. However, this year, the report views globalization through the lens of global value chains. The report states that goods-producing value chains have become less trade-intensive.
Firstly, output and trade both continue to grow in absolute terms, but smaller share of the goods rolling off the world’s assembly lines is now traded across border. Between 2007 and 2017, exports declined from 28.1% to 22.5% of gross output in goods-producing value chains. Secondly, cross-border services are growing more than 60% faster than trade in goods, and they generate more economic value than traditional trade statistics capture.
Source: McKinsey and Company