China’s Leverage of Industrial Policy to Absorb Global Value Chains in Emerging Industries

2022 ◽  
pp. 413-436
Author(s):  
Anna Holzmann ◽  
Max J. Zenglein
Keyword(s):  
Industrial Policy ◽  
Global Value Chains ◽  
Value Chains ◽  
Emerging Industries

scholarly journals Renewable futures and industrial legacies: Wind and solar sectors in China, Germany, and the United States

2017 ◽  
Vol 19 (1) ◽  
pp. 68-106 ◽  
Author(s):  
Jonas Nahm
Keyword(s):  
United States ◽  
Industrial Policy ◽  
Full Range ◽  
The United States ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Networks ◽  
Emerging Industries ◽  
Original Dataset ◽  
Industrial Specialization

AbstractThis article develops an explanation for patterns of industrial specialization in emerging high-technology industries through a comparative analysis of wind and solar sectors in China, Germany, and the United States. Although governments have held similar industrial policy goals in the support of renewable energy industries, firms in all three economies have established distinct innovative capabilities in response to the policies of the state. This article shows that firms utilize both legacy institutions and engage in relational learning in global networks to carve out distinct niches in emerging industries. Based on an original dataset of more than 200 firm-level interviews, the article suggests that the rise of global value chains has widened the space for national diversity in industrial specialization. Firms no longer have to establish the full range of skills required to bring an idea from lab to market, but can specialize and collaborate with others. In this context, firms respond to industrial policy by incrementally building on existing industrial capabilities and by relying on familiar public resources and institutions, even in emerging industries. These findings point to the role of industrial legacies in shaping firms' positions in global value chains and show that firms are active agents in maintaining distinct industrial specializations and domestic institutions under conditions of globalization.

Global Value Chains, Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector

2020 ◽  
Vol 51 (4) ◽  
pp. 1018-1043
Author(s):  
Lindsay Whitfield ◽  
Cornelia Staritz ◽  
Mike Morris
Keyword(s):  
Industrial Policy ◽  
Global Value Chains ◽  
Value Chains ◽  
Economic Upgrading

scholarly journals Trade, Global Value Chains and Development – What Role for National Development Banks?

2020 ◽  
Vol 89 (3) ◽  
pp. 9-33
Author(s):  
Petra Dünhaupt ◽  
Hansjörg Herr
Keyword(s):  
Industrial Policy ◽  
National Development ◽  
Global Value Chains ◽  
Global South ◽  
Value Chains ◽  
Foreign Direct Investments ◽  
Catching Up ◽  
National Currencies ◽  
Global North ◽  
Development Banks

Summary: In this article we discuss the need for industrial policy and role of development banks for economic development. The catching-up of countries in the Global South to productivity levels and living standards of the Global North is the exception. There are two main economic explanations for this observation. First, developing countries are pushed to low-tech and labor-intensive productions and tasks in global value chains. This offers the advantage of easier industrialisation, but it does not automatically lead to productivity levels comparable with the Global North. Foreign direct investments only partially help to overcome this problem. Second, low trust in national currencies in the Global South leads to distorted financial markets which do not provide sufficient credit for investment. National development banks play a key role in facilitating the economic catching-up of the Global South as part of needed industrial policies. They can alleviate distortions in the financial system and at the same time support the transformation of the economy towards higher productivity and ecological transformation. We explain development bank policies by using the KfW as an example of an effective industrial policy.

Phases and Uneven Experiences in African Industrial Policy

2020 ◽  
pp. 841-866
Author(s):  
Lindsay Whitfield ◽  
Nimrod Zalk
Keyword(s):  
Industrial Policy ◽  
Positive Impact ◽  
Global Value Chains ◽  
Value Chains ◽  
Middle Income ◽  
Domestic Markets ◽  
Knowledge Based ◽  
Apparel Production ◽  
Sub Saharan ◽  
Ssa Countries

The chapter examines the challenges of implementing industrial policy in selected sub-Saharan African (SSA) countries with a particular focus on raising the capabilities of locally owned firms. Under hyper-globalization, entry even into the lowest rungs of global value chains is challenging, as reflected by Ethiopia’s efforts to enter apparel production and Kenya’s and Rwanda’s experience with global value chains in knowledge-based services. Nigeria and Ethiopia succeeded in establishing domestic cement industries dominated by local firms, but face constraints in domestic demand and challenges with oligopolistic structures in domestic markets, which can produce challenges for regulating markets and redistributing wealth. South Africa reflects a case of middle-income de-industrialization and efforts at re-industrialization. Industrial policies in automotive and apparel sectors have had some positive impact but have been constrained by mutually reinforcing forces of disengagement of large business groups from diversified manufacturing and rising corruption exacerbated by unsupportive macroeconomic policy.

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