Global Value Chains and Least Developed Countries in Asia: Cost and Capability Considerations in Cambodia and Nepal

Author(s):  
Jodie Keane ◽  
Yurendra Basnett
2018 ◽  
Vol 2 (2) ◽  
pp. 1
Author(s):  
Xubei Luo ◽  
Xuejiao Xu

Infrastructure development is critical to delivering growth, reducing poverty and addressing broader development goals, as argued in the World Bank Report Transformation through Infrastructure (2012). This paper surveys the literature of the linkages between infrastructure investment and economic growth, discusses the role of infrastructure in the participation of global value chains and in supporting economic upgrades, highlights the challenges faced the least developed countries and provides policy recommendations. It suggests that addressing the bottlenecks in infrastructure is a necessary condition to provide a window of opportunity for an economy to develop following its comparative advantage. With the right conditions, good infrastructure can support an economy, particularly a less developed economy, to reap the benefit through the participation in the global value chains to upgrade the economic structure.


2012 ◽  
Vol 56 (1-2) ◽  
Author(s):  
Nicole Reps ◽  
Boris Braun

Going green - environmental upgrading and value chain coordination in the Indian automotive industry. Previous debates have linked environmental upgrading processes in global value chains above all to the influence of powerful lead firms from developed countries. In this paper, we argue that the Indian automobile sector, too, shows a growing tendency for more environmental protection. However, the decisive impetus is often not given by international lead firms.Applying the concept of global value chains, this paper aims to identify both the dominating coordination mechanisms in the Indian automobile chain, and the strategies of different actors for environmental upgrading. The empirical section draws on findings from 130 qualitative interviews with eight vehicle manufactures, 54 component suppliers and several industry experts held between 2009 and 2011. Our results indicate that Indian vehicle manufacturers are presently more pivotal to driving “green” supply chains than international players. Our findings suggest that especially the strong technical and organizational support provided by Indian lead firms is the crucial factor to push component suppliers to improve their environmental performance. On this account, the recent debate on greening of supply chains seems to be led too much from a western perspective. Rather, it appears that many environmental upgrading processes in automobile supply chains occur independently of western lead firms. In fact, they are mostly initiated and implemented by local lead firms.


2020 ◽  
pp. 113-138
Author(s):  
D. Hugh Whittaker ◽  
Timothy J. Sturgeon ◽  
Toshie Okita ◽  
Tianbiao Zhu

Chapter 5 explores the ways in which less-developed countries experience the era-related effects of compressed development and try to cope with them. Chapter 4 compared late-developer Japan and compressed-developer China, but countries with poor or mixed records of economic development also face the opportunities and constraints of compression, and must do so with institutions, policies, and industries which emerged under prior conditions. Large-market less-developed countries such as Brazil, India, and even China face the era effects of compression, with legacies that are often poorly suited and sometimes antithetical to the demands of global value chains and technology ecosystems. Discontinuities and differences across sectors further complicate the role of the state in the era of compressed development.


2018 ◽  
Vol 1 (2) ◽  
pp. 168-184 ◽  
Author(s):  
Wineaster Anderson

Purpose The purpose of this paper is to examine how local agricultural communities are integrated into the tourism value chains and provide insights into how this can contribute to poverty reduction. Design/methodology/approach The study employed the value chain approach to gain an understanding of the linkages between tourism and agriculture. Interviews involving local suppliers of agricultural products and tourism businesses (n=195) were conducted in Lushoto, Tanzania. The livelihood portfolios (range of activities – farming, employment, tourism, etc.) were analyzed in terms of the resources (economic, natural, human, physical and social assets) available to individuals and households and how these are optimally used to achieve inclusive growth. Findings The findings show that the form of tourism business ownership and the presence of specific social networks between tourism businesses and local suppliers dictate the mode of buying and the strength of supply chains. Community-based tourism is dominant in the area, allowing tourists to interact with agrarian rural communities. However, the optimal local linkages have been hampered by the quantitative and qualitative mismatch between locally supplied products and the tourism sector’s requirements. The failure of many initiatives aimed at addressing the mismatch creates a need for empowering local communities to enable them to take the opportunities that tourism provides. Practical implications Least developed countries need to build on the lessons learned from the development of tourism in their local settings, and pursue strategies which bring hope, confidence and real benefits to the majority of the struggling population. This study gives an insight on how inter-sectoral linkages could be embraced among the strategies or means of reducing rampant poverty. Originality/value Linking local agricultural production to tourism has long been seen as a promising way to make tourism more economically inclusive. However, the use of value chain approach in studying the tourism-agriculture linkages for inclusive development, especially in the developing economies is not common. While employing Porter’s value chains analysis, this study provides insights into how local farmers can be incorporated in tourism food supply chains in an ethical and beneficial way.


2019 ◽  
Vol 17 (3) ◽  
pp. 438-451
Author(s):  
Liudmyla Deineko ◽  
Olena Tsyplitska ◽  
Oksana Kushnirenko ◽  
Oleksandr Deineko

The study reveals the peculiarities of modern global production development due to global value chains (GVCs) formation that allow both developing and developed countries to integrate successfully into international production networks. This research is aimed at identifing key factors responsible for the upstream movement of Ukraine through GVCs and determining locations for production capacities, as well as at developing an institutional mechanism for facilitating the successful integration of domestic producers into GVSs. To achieve this, a multiple linear regression reflecting the interrelation between manufacturing industry share in exports value added and the institutional and economic indicators is analyzed. Three scientific hypotheses are tested and two of them are verified. The multiple linear regression results disclose a significant impact of institutional factors on the country’s ability to participate in GVCs and justify the first hypothesis, namely the higher the government effectiveness and regulatory quality are, the higher the manufacturing value added in exports is. Better governance and administrative functions performance enhance companies’ export potential. The model also verifies the second hypothesis that emphasizes better ability to join GVCs with low and medium technology product than with a high technology one. The model outputs contradict the third hypothesis on the protectionism: high tariffs for imports significantly matter in exports promotion. However, this result should be considered while accounting for the global trend of trade liberalization and Ukraine’s international agreements. The article proposes policy recommendations for improving the positions of Ukraine in GVCs.


Author(s):  
Ahmad Hassan ◽  
Peter Lund-Thomsen

In this chapter, we make a contribution to the literature on corporate social responsibility in global value chains that link dispersed consumers and importers in developed countries with local manufacturers, workers, and communities in developing countries. We create an integrated analytical framework and a methodology that can guide master-level and Ph.D. students as well as practitioners on how they may map the governance processes through which multi-stakeholder initiatives (MSIs) in global value chains are formulated, implemented, monitored as well as the impact that MSI standards have on the work conditions of those laboring at the base of global value chains. We use a stylized case study of fair trade in the football manufacturing industry in Pakistan to illustrate how the framework and the methodology might be applied to the empirical analysis of MSI governance processes and their impacts on workers' conditions in export-oriented industries in the South.


2020 ◽  
Vol 12 (1) ◽  
pp. 432 ◽  
Author(s):  
Jing Peng ◽  
Yabin Zhang

With the deepening development of global value chains (GVC), a large number of foreign intermediate inputs have been integrated in the products production process of one country, thus the technology content of export products may not completely come from the home country. According to the new measurement based on production process, this paper calculates the domestic technology content of China’s manufacturing industry from 2000 to 2014 by using the data of World Input–Output Database (WIOD). Furthermore, it has an empirical analysis of the effect of GVC position on domestic technology content using the panel data of China’s 18 manufacturing industries. The results showed that: the technology content of the China’s manufacturing exports are increasing, and the domestic technology content grows faster than overall technology content, which indicats that China’s manufacturing industry has been upgraded and optimized in a certain way; However, there is still a certain gap between China’s manufacturing technology content and the corresponding indicators of major developed countries; And the upgrading of GVC position of Chinese manufacturing industry can significantly improve the domestic technology content of manufacturing exports.


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