What I see to be the study’s second-most important finding is that, contrary to common perception, only about 18 percent of the global goods trade is now driven by lower labor costs (labor arbitrage), that in many chains this share has been declining throughout the 2010s, and that global value chains are becoming more knowledge-intensive and rely increasingly on highly skilled labor. Similarly, an OECD study shows that the expansion of global value chains stopped in 2011 and since then has slightly declined: there has been less trade in intermediate goods and services.[97]
