Identifying Intra-Commonwealth Value Chains

Understanding the global/regional value chain interface remains an important research endeavour including within the Commonwealth. This paper uses mixed research methods and presents some preliminary results on the nature of intra-commonwealth value chains. Trade intensity measures are analysed across specific product lines, followed by the identification of trade shifts for intermediate goods sourcing on an intra-Commonwealth basis. Finally, firm-level GVC indicators linked to specific product lines traded on an intra- and extra-Commonwealth basis are explored. Overall, the results presented in this paper suggest that Commonwealth members tend to trade more intensely on an intra-regional basis within more additive types of value chains (e.g. natural resource based, agro-processing). There have been some shifts in intermediate goods sourcing, with increased intra-Commonwealth sourcing of industrial goods. Small Island Developing States are more likely than other groups of member countries to export on an intra-Commonwealth basis. These preliminary results call for more nuanced approaches regarding entering and upgrading within GVCs, particularly for Commonwealth small states.