Global Value Chains and International Competitiveness

December 1, 2012

The rapid development of ICTs have caused their costs to fall dramatically, leading to international fragmentation in production activity, meaning that comparative advantages are no longer determined in terms of industries but rather in terms of activities or business functions. With comparative advantage now determined more in terms of activities or business functions than industry, this report attempts to identify, map, and analyze comparative advantages within the trade and investment areas in industries, products and activities, with a particular focus on the Swedish economy.