Identifying Intra-Commonwealth Value Chains
Summary
This research paper by Jodie Keane explores the nature of intra-Commonwealth value chains using a mixed-methods approach. It analyzes trade intensity, shifts in intermediate goods sourcing, and firm-level data to determine how Commonwealth members integrate into regional versus global value chains (GVCs). The findings suggest a prevalence of additive value chains and a specific tendency for Small Island Developing States to export within the Commonwealth.
Key insights
- Commonwealth members exhibit higher trade intensity on an intra-regional basis within 'additive' types of value chains, such as those based on natural resources and agro-processing, compared to more vertically fragmented GVCs.
- Between 2000 and 2012, there were significant shifts in the sourcing of intermediate goods within the Commonwealth: sourcing of industrial goods increased by 10.8 per cent and fuels increased by 9.7 per cent, while the sourcing of capital goods declined by 23.9 per cent.
- Small Island Developing States (SIDS) are significantly more likely to export to other Commonwealth members than other member country groups, with an odds ratio of 5.088 for intra-Commonwealth exports and 0.372 for extra-Commonwealth exports.
- Foreign Direct Investment (FDI), indicated by a firm having 10 per cent or more foreign ownership, increases the likelihood of a Commonwealth firm exporting by nearly three times, with a preference for intra-Commonwealth partners.
- Customs and trade regulations act as a barrier to exporting for Commonwealth firms generally, but these barriers appear to be less problematic for those specifically exporting to other Commonwealth members.
- Analysis of value added indicates that Foreign Value Added (FVA) slightly increases the likelihood of a firm exporting on an intra-Commonwealth basis, whereas Domestic Value Added (DVA) increases the likelihood of exporting on an extra-regional basis.
Cite the original document
- APA
- South African Institute of International Affairs (n.d.). Identifying Intra-Commonwealth Value Chains. https://saiia.org.za/wp-content/uploads/2016/06/013-Identifying-Intra-Commonwealth-Value-Chains-by-Jodie-Keane.pdf
- Chicago
- South African Institute of International Affairs. Identifying Intra-Commonwealth Value Chains. n.d. https://saiia.org.za/wp-content/uploads/2016/06/013-Identifying-Intra-Commonwealth-Value-Chains-by-Jodie-Keane.pdf.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=Identifying Intra-Commonwealth Value Chains |url=https://saiia.org.za/wp-content/uploads/2016/06/013-Identifying-Intra-Commonwealth-Value-Chains-by-Jodie-Keane.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairsndidentifying, author = {{South African Institute of International Affairs}}, title = {{Identifying Intra-Commonwealth Value Chains}}, institution = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2016/06/013-Identifying-Intra-Commonwealth-Value-Chains-by-Jodie-Keane.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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