Global value chains (GVCs) are the international dispersion of design, production, assembly, marketing, and distribution of services, activities, and products. Growth of GVCs has exploded in the past decade as different stages in the production process are increasingly located across different economies. Intermediate inputs such as parts and components are produced in one country and then exported to other countries for further production and assembly in final products. Functional and spatial fragmentation within GVCs has significantly reshaped the global economic landscape, raising some new major policy challenges for OECD countries and emerging countries alike. This volume examines the expansion of global value chains and their effects on trade policy, competitiveness, innovation, and the management of global systemic risk.