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Structural Changes in Global Value Chains (GVCs): ASEAN and India

China still serves as a leading production hub in Asia, but it is interesting to look at recent production unbundling in ASEAN and India. Catalyzed by increasing labor costs in China, production networks have begun to extend to ASEAN and India. As ASEAN and India have young and large populations, they have definite advantages in labor-intensive processes. Recent trade statistics show that ASEAN and India are importing many intermediate goods and exporting capital goods.  


There are a few noticeable changes in ASEAN and India’s GVC structure. First, ASEAN and India’s GVC integration has risen. Second, the vertical specialization (VS) structure shows potential evidence of GVC upgrad-ing in ASEAN and India. Third, the regional value chain has become more prominent in ASEAN and India over the years. Fourth, the regional trade matrix of intermediate goods and re-export reveals that regional production hubs are more diversified in ASEAN and India. 

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