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[Asian Steel Watch] Vol.6 (2018.12)

[Asian Steel Watch] Vol.6 (2018.12)

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On the Cover Global Value Chains: A Framework for Analyzing the Steel Industry

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GVC develops when the influence of a value chain transcends the borders of a country and spreads into cross-country activities. GVC refers to the fragmentation and decentralization of production processes into networks of vertically and horizontally intertwined countries, industries, and enterprises, as well as the subsequent value-added activities. Global steelmakers are targeting emerging markets and focusing on an expansion of value-added products. Given the international fragmented production structure, it is hard to trace value-added contributions because of this double counting issue. To address this issue, exports are divided into domestic value added absorbed abroad (DVA), domestic value added returned home (RDV), and foreign value added (FVA).
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