It is a central premise of the World Trade Organization (WTO) that trade drives growth and development. By liberalizing trade, countries benefit not only from increased access to technology and consumer goods but also from the chance to find new markets and connect to global value chains. This can quickly translate into GDP growth and a rise in the standard of living. But why do some countries seem to benefit more – and more quickly – than others? That is the question that this book tries to answer.

The WTO Chairs Programme (WCP) was launched in 2010 as a capacity-building project. It aims to enhance knowledge and understanding of the trading system among academics and policy makers in developing countries through curriculum development, research and outreach activities by universities and research institutions. Information on the WCP is available at www.wto.org/wcp.

This volume has been produced under the WTO Chairs Programme (WCP), a WTO capacity-building programme launched upon the initiative of Hakim Ben Hammouda and Patrick Low in 2010. The WCP is jointly managed by the WTO’s Institute for Training and Technical Cooperation and Economic Research and Statistics Division under the direction of Bridget Chilala and Robert Teh, respectively. The editors thank Fatima Chaudhri and Gerardo Thielen for their contribution to the initial stages of this book project and Clémence Gros for editorial assistance. Anthony Martin and Helen Swain are thanked for managing the production process of the volume.

Over the past decades, trade flows have become increasingly global. Today, South- South trade represents around one-half of global trade and the top ranks of major traders are not exclusively occupied by industrialized countries (OECD, 2010). Trade now spans all major world regions and continues to grow within and across those regions. Trade also takes new forms as trade in goods is increasingly accompanied by trade in tasks. Capital flows more freely across regions and trade and capital flows together have contributed to an increased transfer of technological change across regions. There is a strong sense that companies and countries well integrated in these global networks are part of a virtuous circle involving technological progress and growth. Not being connected, however, can represent a very serious bottleneck for future growth and economic development.