Building Sustainable and Stable Global Value Chains

Abstract

Global value chains (GVCs) are intended to fragment global production among several countries and companies. In this context, national economies have begun processes of insertion and specialization with both social and green objectives, because multinationals (MNEs) create significant negative externalities. As country, relies on a long-term political vision and some modern infrastructures even if Morocco has chosen to develop an integrated economy in global businesses. However, the GVCs face a tremendous change because the Covid-19 pandemic, war in Ukraine and shortages in value chains. In addition to these external shocks, MVCs face two internal mechanisms. First, the temptation of multinationals to reorganize their operations in a more regional manner. Second, the claim of many countries to produce and capture greater value added through their efforts to train people and develop ESG-based solutions. It is interesting to compare and analyze different types and levels of insertion of activities in GVCs. This paper examines four different cases in Morocco: phosphate, automotive, textile and agribusiness. We identify three trends.