Title page 1

Contents 5

Acknowledgements 4

Abbreviations and acronyms 7

Key findings 8

1. Measuring global value chains in an era of reconfiguration 9

2. Key trends in GVCs in nominal and real terms 11

Trade via global value chains has reached historical highs in 2024 in real terms 11

Industries differ markedly in their reliance on trade via GVCs, with some remaining highly globally integrated 13

Most economies rely more on foreign inputs in 2024 than in 2011, although patterns differ widely 14

Post-pandemic changes in global value chain participation reflect shifts in sourcing and production structures 17

Gross and value-added trade point to different bilateral dynamics among major economies 19

3. Key trends in multinational production 20

Multinational production is comparable in scale to world trade 20

Multinational enterprises are disproportionately important in trade 21

The location and ownership of foreign affiliate production remain unevenly distributed 22

Foreign-owned firms are more internationally embedded than domestic-owned firms 24

Foreign affiliates matter most in manufacturing and selected services 26

4. Key trends in services trade by mode of supply 27

International trade in services is growing faster than trade in goods 27

Mode 3 remains the largest channel of international services supply 28

Different services industries rely on different modes of supply 29

Services global value chain participation differs across countries and modes of supply 30

Manufacturing exports embody substantial services content, including through Mode 3 31

Domestic consumption of services involves a different mix of modes of supply across countries 33

5. Implications: Towards a more nuanced assessment of supply chain trends 35

6. About the GVC datasets presented in this report 36

The OECD PYP ICIO dataset 36

The Analytical AMNE database 37

The Trade in Value Added Indicators for Services by Mode of Supply (TiVA-MoS) database 38

Interpreting input-output-based GVC indicators: Key caveats and limitations 39

Annex A. Projection of ICIO tables in current and previous year's prices 41

Glossary 43

References 44

Notes 46

Figure 2.1. Trade via global value chains has reached historical highs in the post-pandemic period in real terms 12

Figure 2.2. Commodity price swings distort nominal measures of trade via GVCs 13

Figure 2.3. Industries differ markedly in their reliance on trade via GVCs 14

Figure 2.4. Most economies have become more reliant on foreign value added in their exports 16

Figure 2.5. Post-pandemic increases in GVC participation reflect structural change more than greater foreign sourcing 18

Figure 2.6. Value-added linkages among major economies persist beyond direct bilateral trade 19

Figure 3.1. Multinational production is comparable in scale to world trade 21

Figure 3.2. Multinational enterprises account for a disproportionate share of world trade 22

Figure 3.3. Foreign affiliate production remains concentrated in a small group of host and parent economies 23

Figure 3.4. The geography of multinational production is becoming more diversified 24

Figure 3.5. Foreign-owned firms are more internationally embedded but remain closely linked to domestic suppliers 25

Figure 3.6. Foreign affiliates matter most in manufacturing and selected services 26

Figure 4.1. International trade in services is growing faster than trade in goods 28

Figure 4.2. Commercial presence is the largest channel for supplying services internationally 29

Figure 4.3. The dominant mode of international supply differs sharply across services industries 30

Figure 4.4. Services GVC participation depends on both cross-border trade and foreign affiliate activity 31

Figure 4.5. Foreign services make a substantial contribution to manufacturing exports 32

Figure 4.6. Countries rely on markedly different modes to meet domestic demand for foreign services 33

Boxes 12

Box 2.1. Commodities price fluctuations and their impact on GVC measurement 12