What is Upgrading in Global Value Chains

The COVID-19 pandemic-related economic lockdowns and restrictions have caused socio-economic uncertainties in the world since 2020. The pandemic-induced economic shocks affected world trade, especially the reactions in fragile markets. As a result of the strict rules taken by the countries, the decrease in the supply of intermediate goods inputs used in industries worldwide, supply shock has caused global supply chains and economic problems to spread through supply chains. Due to the increase in demand exceeding the current supply and production capacity, the fragmented production system, which spread throughout the world, led to the risks related to global value chains (GVC). In this context, discussion of the uplift processes within the chain, which expresses the upgrading perspective, has come to the fore again. The solutions in chains, which are applied by industries in the pandemic process, emphasize the importance of backward and forward linkages in the chain.