Fig. 1

Value chain tree. Source: own conceptualisation and design. Arrows represent production-sharing transactions—buying and selling of intermediate products for production. Orange colour denotes production that does not involve any production sharing, while any combination of red or orange paths denotes domestic production fragmentation. Any value chain path which includes a cross-country production-sharing transaction (a black arrow) is part of a global value chain from the perspective of the particular unit in focus. The paths of value creating and value realisation in a general case continue to branch ad infinitum (three levels are chosen only for demonstration purposes)