Russia in Global Value Chains: Levels of Participation and Distribution of Gains

Abstract

One of the most important economic processes in the world economy over the recent decades has been increasing fragmentation of international production that resulted in expansion of global value chains (GVCs). National economies started to get involved in GVCs in order to get value-added gains from this participation; Russia is not an exception. To analyze Russia’s GVCs participation, we need to adopt new statistical methodology based on input–output approach that allows estimating trade flows in terms of value added, including foreign and domestic value added as parts of gross exports. The author comes to the conclusion that Russia’s participation in GVCs was growing during the last decades mostly by forward participation connected with supply of oil and gas along GVC; moreover, Russia had net gains from this participation. Future trends in Russia’ involvement in GVCs can be described by two scenarios. The first one is based on expanding forward manufacturing participation in order to increase and diversify nonoil exports. This scenario is strongly supported by Russian Federation Ministry for Economic Development. The second scenario covers the continuation of mineral participation in GVCs that Russia implements till now. Both scenarios have their pro and contra. The author argues that the first scenario is better correlated with long-term economic interests and possibilities for sustainable development in Russia.

Citation

Volgina, N. (2018), "Russia in Global Value Chains: Levels of Participation and Distribution of Gains", Sergi, B.S. (Ed.) Exploring the Future of Russia’s Economy and Markets, Emerald Publishing Limited, Leeds, pp. 219-234. https://doi.org/10.1108/978-1-78769-397-520181012