%0 Journal Article
%T Obstacles to and opportunities for the integration of an emerging market
	economy into global value chains: The case of Tunisia
%A Bass, Hans-Heinrich
%J International Business and Global Economy
%V 2016
%R 10.4467/23539496IB.16.013.5594
%N Volume 35/1
%P 169-182
%K backward and forward linkages, economic complexity, foreign direct investment, investment promotion policies, inclusive growth
%@ 2300-6102
%D 2016
%U https://ejournals.eu/en/journal/ibage/article/przeszkody-i-mozliwosci-integracji-rozwijajacych-sie-rynkow-z-globalnymi-lancuchami-wartosci-przyklad-tunezji
%X 
	This article aims to evaluate the integration of Tunisian firms into global value chains (GVC), to offer a prognosis of their future prospects in this area, and to offer policy recommendations to improve GVC participation. Based on the OECD data on trade in value added, indicators for the current status and the previous dynamics of backward integration as well as the previous increase in GVC participation have been calculated. The data shows that the integration of the Tunisian economy into GVCs is relatively strong in only two industries: electrical machinery and textiles. It can be shown that an increase inGVCparticipation goes hand in hand with a strengthening of the position in GVCs. However, most industries relevant for employment generation (especially food and textiles) show only weak improvements in GVC participation. One reason can be seen in an inappropriate investment promotion policy. As the forecast shows a delinking of Tunisia from international capital flows, this situation is not likely to change for the better in the near future without changes in the country’s investment policies. It is recommended to concentrate on the promotion of the local transformation of agricultural products that are usually exported untreated (deepening GVC participation) and to create niche products from other traditional sectors, such as technical textiles (broadening GVC participation). It is also suggested to increase the links of local small and medium enterprises to GVCs to allow for larger employment effects of GVC participation and for a more socially and regionally balanced economic growth.