DIRECTOR of the INSTITUTE ALEXANDER DANILTSEV TOOK PART in the EASTERN ECONOMIC FORUM

The Far East and Asia Pacific: Fostering CollaborationIncluding the Far East in Global Value Chains: Effective Strategies

Considering the current changes in the structure of the global economy, a country’s involvement in global trade is largely determined by its participation in global value chains (GVCs). There has been a rapid increase in the proportion of intermediate goods traded in the global economy. Industries are moving into a high-tech, knowledge-intensive sphere with a growing share of service sectors. The way added value is distributed geographically within global production chains has changed, as the Asia Pacific comes to play an increasingly important role in this process. Given the Far East’s geographical proximity to Asia-Pacific nations that are actively involved in global value creation processes, it is important to create an effective strategy for companies in the region to participate in GVCs, as well as consider the conditions and mechanisms needed to implement it. This will include developing cooperation with the key foreign countries of the region. Success will require an optimal combination of domestic policies promoting the effective integration of Russia into GVCs with the participation of Asia Pacific countries, as well as increasing cooperation and joint projects (including of an integrative nature) that are capable of maximizing mutually beneficial results from involvement in shared GVCs. Modern trends in the development of global trade: what are the effects of globalization on trade today? What is the Russian Far East's role and place in modern international trade? What are the parameters for the Far East’s participation in global and regional value chains? How can the margins of participating in these chains be increased? What strategy should the region take to effectively participate in global trade and GVCs? What factors affect the formation of stable and mutually beneficial GVCs? How can vertical growth via GVCs be achieved? How do trade policies affect the formation of GVCs and how can policy instruments be used effectively? What benefits can be expected from trade agreements, including free-trade agreements, in the context of increasing the effectiveness of GVC participation?