The Impact of Preferential Trade Agreements on Countries’ Participation in Global Value Chains: The Role of Depth and Content

Articles in Press

Document Type : Review article

Authors

1 1- PhD Student of Science and Technology Policy, Iran University of Science and Technology (IUST)rn2- Researcher at Sharif Policy Research Institute (SPRI), Sharif University of Technology

2 Researcher at Sharif Policy Research Institute (SPRI), Sharif University of Technology

3 Faculty member at Technology Studies Institute

Abstract

In recent decades, the expansion of global value chains (GVCs) and the proliferation of preferential trade agreements (PTAs) have had a significant impact on the global economy. These agreements not only reduce trade barriers and facilitate countries’ participation in global value chains, but also provide mechanisms for improving economic governance and domestic policy frameworks. However, the central question remains: how do the depth and content of these agreements influence the extent of countries’ integration into global value chains? This study adopts a qualitative–exploratory approach, employing a systematic literature review based on the Scopus database. Within this framework, key studies were identified and additional relevant papers were collected through the snowball sampling method. Following a two-stage screening process, the initial pool of 32 papers was narrowed down to 10 core studies. Screening was conducted based on language (English), thematic relevance, and conceptual alignment with the research question. The extracted themes were organized into three conceptual categories: (1) content dimensions of trade agreements, (2) indicators of depth and diversity, and (3) implications for global value chains. The findings indicate that the deeper the trade agreements, the stronger their impact on enhancing trade within global value chains. This effect is particularly pronounced in developing countries, where opportunities for specialization within specific segments of the chain are greater. The results suggest that deep agreements can not only accelerate integration into global production networks but also improve countries’ positions within the value chain. Nevertheless, such agreements may impose constraints on domestic policy autonomy. For developing countries such as Iran, these findings carry a clear message: it is not merely the number of agreements that matters, but their content and the precision of their commitments—factors that play a decisive role in the strategic success of integration into global value chains.

Keywords

Main Subjects

Science and Technology Policy Letters

Articles in Press, Accepted Manuscript
Available Online from 28 November 2025

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History

  • Receive Date: 24 September 2025
  • Revise Date: 11 November 2025
  • Accept Date: 28 November 2025

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