ABSTRACT
The international fragmentation of production (wherein different processes of the value chain are sliced up and different fragments are produced in different countries) has transformed international trade. As a consequence, international trade is dominated by trade in parts and components. More than 60% of global trade consists of trade in intermediate goods and services (UNCTAD 2013). This chapter aims to review the evidence of GVC trade and examines why engagement in GVCs is limited for some countries. The literature review provides a key for building the framework on integration and learning which is used in the book. It also helps identify the gaps existing in literature, especially with regard to India. The review is divided into the following sections: (i) measurement of GVC-related trade and (ii) barriers to integration.
