scholarly journals State policies and upgrading in global value chains: A systematic literature review

2021 ◽  
Author(s):  
Valentina De Marchi ◽  
Matthew Alford
Keyword(s):  
Public Procurement ◽  
Global Value Chains ◽  
State Policies ◽  
Theory And Practice ◽  
Value Chains ◽  
Value Capture ◽  
State Policymaking ◽  
Environmental Goals ◽  
The One ◽  
Economic Upgrading

AbstractThis paper examines the role of state policymaking in a context of global value chains (GVCs). While the literature acknowledges that states matter in GVCs, there is little understanding of how they matter from a policy perspective. We address this tension between theory and practice by first delineating the state’s facilitator, regulator, producer and buyer roles. We then explore the extent to which corresponding state policies enable or constrain the following policy objectives: GVC participation; value capture; and social and environmental upgrading. We do so via a systematic review of academic GVC literature, combined with analysis of seminal policy publications by International Organizations. Our findings indicate that state policymakers leverage facilitative strategies to achieve GVC participation and enhanced value capture; with regulatory and public procurement mechanisms adopted to address social and environmental goals. Mixed results also emerged, highlighting tensions between policies geared towards economic upgrading on the one hand, and social and environmental upgrading on the other. Finally, we suggest that effective state policies require a multi-scalar appreciation of GVC dynamics, working with multiple and sometimes competing stakeholders to achieve their developmental objectives.

scholarly journals Global Value Chains’ Disaggregation through Supply Chain Collaboration, Market Turbulence, and Performance Outcomes

2021 ◽  
Vol 13 (8) ◽  
pp. 4151
Author(s):  
Amit Arora ◽  
Anshu Arora ◽  
Julius Anyu ◽  
John McIntyre
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
The United States ◽  
Global Value Chains ◽  
Theory And Practice ◽  
Value Chains ◽  
Supply Chain Collaboration ◽  
Doing Business ◽  
Market Turbulence ◽  
Relational Outcomes

This research examines supply chain collaboration effects on organizational performance in global value chain (GVC) infrastructure by focusing on GVC disaggregation, market turbulence, inequality, market globalization, product diversity, exploitation, and technological breakthroughs. The research strives to develop a better understanding of global value chains through relational view, behavioral, and contingency theories along with institutional and stakeholder theories of supply chains. Based on conflicting insights from these theories, this research investigates how relationships and operational outcomes of collaboration fare when market turbulence is present. Data is obtained and analyzed from focal firms that are engaged in doing business in emerging markets (e.g., India), and headquartered in the United States. We investigate relational outcomes (e.g., trust, credibility, mutual respect, and relationship commitment) among supply chain partners, and found that these relational outcomes result in better operational outcomes (e.g., profitability, market share increase, revenue generation, etc.). From managerial standpoint, supply chain managers should focus on relational outcomes that can strengthen operational outcomes in GVCs resulting in stronger organizational performance. The research offers valuable insights for theory and practice of global value chains by focusing on the GVC disaggregation through the measurement of market turbulence, playing a key role in the success of collaborative buyer–supplier relationships (with a focus on US companies doing business in India) leading to an overall improved firm performance.

Political Economy of Foreign Direct Investment

2017 ◽  
pp. 102-116
Author(s):  
Esra LaGro
Keyword(s):  
Political Economy ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Global Economy ◽  
Global Value Chains ◽  
Theory And Practice ◽  
Value Chains ◽  
Global Political Economy ◽  
Eu Member States

The global political economy evolves around shifting theoretical and conceptual paradigms that simultaneously reflect the ongoing globalization process involving several actors and processes. Thus the complexity of linking the theory and practice of global political economy increases, and this, in return, accelerates further the in-depth inquiries in this interdisciplinary field of research such as discussions around global governance, international economic system, international trade, global value chains, and international development among several others. More specifically, in parallel with these developments, underlying trends in the global economy point to vast developments in both theory and practice of foreign direct investment (hereinafter FDI) across regions, countries and sectors as well, which form the main focus point of this chapter which will attempt to address the complexity of linking theory with actual practice through also involving global value chains with reference to FDI between EU member states and Turkey.

Economic and Social Upgrading in Global Value Chains: Insights from Philippine Manufacturing Firms

2018 ◽  
Vol 2018 ◽  
Author(s):  
Adrian R. Mendoza
Keyword(s):  
Statistical Significance ◽  
Global Value Chains ◽  
Labor Cost ◽  
Value Chains ◽  
Probit Regression ◽  
Skilled Workers ◽  
Labor Conditions ◽  
Skill Intensity ◽  
Economic Upgrading ◽  
Social Upgrading

This study explores results of the 2012 Survey on Adjustments of Establishments to Globalization (SAEG) to analyze the economic and social upgrading experience of Philippine manufacturers within global value chains (GVCs). Three broad patterns emerge from the data. First, firms with stronger GVC linkages tend to have better labor indicators than purely domestic producers. Second, the majority of manufacturers either experienced or missed economic and social upgrading simultaneously. Lastly, almost all social upgrading is accompanied by economic upgrading but economic upgrading may take place without a social component. Against this background, this study uses bivariate probit regression to model the joint determination of the two separate but interconnected upgrading outcomes. The results indicate that the covariates in the model can be categorized based on their statistical significance: purely economic (i.e., employment size, unit labor cost, high skill intensity, and the Kaitz dummy), purely social (i.e., training, female intensity, and foreign equity), and both (i.e., contractualization, and process and product innovations). These results have several important implications. First, GVC firms’ notion of social upgrading is closer to the softer components of working conditions than to traditional measurable indicators such as employment, wages, and efficiency. Second, the results suggest direct and indirect channels through which technological upgrading may generate desirable social outcomes: the direct channel highlights that innovation should be accompanied by skills development to sustain higher value creation while the indirect channel underlines the potential of innovation to create upward spirals in output, productivity, and, ultimately, labor conditions. Lastly, there are some indications that the social benefits of economic upgrading may not be evenly distributed among different types of employment. Overall, the results emphasize the need for a holistic upgrading experience that shifts the country’s comparative advantage from cheap labor to innovative local industries and highly skilled workers.

scholarly journals Multichain strategies and economic upgrading in global value chains: Evidence from Kenyan horticulture

2021 ◽  
Vol 146 ◽  
pp. 105598
Author(s):  
Giovanni Pasquali ◽  
Aarti Krishnan ◽  
Matthew Alford
Keyword(s):  
Global Value Chains ◽  
Value Chains ◽  
Economic Upgrading

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 Integration of African firms into global value chains

2018 ◽  
Vol 14 (2/3) ◽  
pp. 252-281 ◽  
Author(s):  
Weimu You ◽  
Asta Salmi ◽  
Katri Kauppi
Keyword(s):  
Cultural Context ◽  
Raw Materials ◽  
Global Value Chains ◽  
Foreign Firms ◽  
Value Chains ◽  
Small Scale ◽  
Value Capture ◽  
Content Type ◽  
Qualitative Exploration ◽  
Local Sourcing

Purpose This paper aims to analyze the roles that African suppliers play in global value chains and the strategies that foreign firms adopt to integrate African firms into their supply chains. Design/methodology/approach The empirical research of this paper is based on a multiple case study and on interview data of foreign buyers and their entry into African supply markets: five Finnish companies and five Chinese companies were interviewed in 2014-2015. Findings The authors find that Finnish firms make relatively small investments and start sourcing operations on a small scale, whereas Chinese firms are running large infrastructural projects, relying on local sourcing. African firms typically only play modest roles with little value capture in the chain, supplying raw materials and simple products. The African infrastructural and cultural context makes it challenging for foreign firms to provide local suppliers with more strategic roles in their chains, thus hindering integration of local firms into global value chains. Originality/value This paper is one of the first to offer a comparison of Finnish (Western) and Chinese (other emerging economy) firms’ sourcing from Africa and provides understanding of the role of African suppliers in current value chains. The authors offer a qualitative exploration of why companies invest in African suppliers and of the scope of African presence in global value chains.

scholarly journals Regional economic integration and economic upgrading in global value chains: selected cases in Africa

Heliyon ◽  
2021 ◽  
Vol 7 (2) ◽  
pp. e06112
Author(s):  
Barnabas Olusegun Obasaju ◽  
Wumi Kolawole Olayiwola ◽  
Henry Okodua ◽  
Oluwasogo Sunday Adediran ◽  
Adedoyin Isola Lawal
Keyword(s):  
Economic Integration ◽  
Global Value Chains ◽  
Value Chains ◽  
Regional Economic Integration ◽  
Regional Economic ◽  
Economic Upgrading
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