Current trends of global value chains in the world economy

The paper explores the major current trends and features of global value chains (GVCs) in the world economy. The author identifies the main changes in geographical location of GVCs’ stages, in the cost structure of final products, and in the composition of GVCs’ participants. He then considers the reasons for GVCs reduction since the beginning of 2010s, such as: the lack of large-scale initiatives for trade liberalization, «protectionism 2.0», and a shift towards domestic markets in the world’s biggest economies. The author proves that the contemporary geopolitical situation causes significant changes in well-established models of GVCs. The key channels that provided the GVCs reconfiguration in 2010s-2020s have been investigated. The study emphasizes that modern pattern of GVCs is shaped by such factors as lesser importance of differences in low-skilled labor wages as a driving force of geographical fragmentation of production, a larger contribution of services to value creation process, a greater knowledge intensity of GVCs, a higher role of non-affiliated firms in GVCs. Finally, the author argues that current trends in GVCs generate new challenges for the development of Russia’s economy. The analysis concludes with recommendations for Russia’s state policymakers aimed at promoting an effective participation of national companies in GVCs.