scholarly journals Global production networks and the evolution of industrial capabilities: does production sharing warp the product space?

2020 ◽  
Vol 72 (3) ◽  
pp. 731-747
Author(s):  
Russell Thomson ◽  
Prema-Chandra Athukorala
Keyword(s):  
Product Space ◽  
Industrial Structure ◽  
De Novo ◽  
Trade Openness ◽  
Production Networks ◽  
Global Production Networks ◽  
Industrial Upgrading ◽  
Data Set ◽  
Production Sharing ◽  
Space Approach

Abstract Do production capabilities of countries evolve from existing capabilities or emerge de novo? The Product Space approach developed by Hidalgo, Klinger, Barabási and Hausmann postulates that a country’s existing industrial structure largely determines its opportunities for industrial upgrading. However, this is difficult to reconcile with the export dynamism of many developing countries such as Thailand, Malaysia, Costa Rica and Vietnam that transformed from primary commodity dependence to exporters of dynamic manufactured products. In each of these cases, global production sharing facilitated industrial transition. In this article, we advance the Product Space approach to accommodate the role of global production sharing. Using a newly constructed multi-country data set of manufacturing exports that distinguishes between trade within global production networks and traditional horizontal trade, we find that that existing industrial structure has a smaller impact, but trade openness has a greater impact, on industrial upgrading within vertically integrated global industries.

scholarly journals Globalization of the Automotive Industry: Is Indonesia Missing Out?

2016 ◽  
Vol 15 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Moekti P. Soejachmoen
Keyword(s):  
Export Performance ◽  
Trade Openness ◽  
Absorption Capacity ◽  
Least Square ◽  
Production Network ◽  
Production Networks ◽  
Global Production Networks ◽  
Investment Policies ◽  
Left Behind ◽  
Automotive Production

International trade in automotive and auto parts has grown rapidly during the last two decades but Southeast Asia's largest economy, Indonesia, is lagging behind in its export performance. This paper uses a comparative perspective in examining Indonesia's role in automotive production networks in the context of the contemporary debate on opportunities for reaping gains from economic globalization through engagement in global production sharing. This research aims to answer two questions; the first addresses the determinants of a country's participation in the global production network, the second asks why Indonesia is being left behind in global production networks. Our analysis is based on the Jones and Kierzkowski fragmentation theory. The unbalanced panel trade data for 98 countries for the period 1988–2007 are estimated using the least square dummy variable method. The results show that in Asian countries, foreign direct investment openness is the most important determinant followed by trade cost, trade openness, competitiveness, and labor quality. Indonesia is being left behind for a number of reasons, such as restrictive foreign investment policies, higher trade costs and remaining high protection in the automotive sector in terms of tariff and non-tariff measure, and a low education level that hampers the absorption capacity in technology.

scholarly journals Integration into global production networks and path-dependence: the footwear industry in post-socialist Hungary

2016 ◽  
Vol 60 (4) ◽  
Author(s):  
Ernő Molnár ◽  
István Máté Lengyel
Keyword(s):  
Path Dependence ◽  
Structural Changes ◽  
Industrial Structure ◽  
Low Cost ◽  
Degradation Process ◽  
Local Economy ◽  
Value Chains ◽  
Production Networks ◽  
Global Production Networks ◽  
Footwear Industry

Abstract:Labour-intensive industries suffered a spectacular loss of their weight in the industrial structure of post-socialist Hungary having an intermediary position between the Western economies controlling the global industrial value chains and the Eastern low-cost production locations. This degradation process can be particularly witnessed in the case of the footwear industry which experienced two large waves of decline, one during the change of regime in 1989 and the other after the turn of the millennium. In the background of the changing performance of the footwear sector there were also significant structural changes during both periods of decline. Integration into global production networks by subcontracting or as subsidiaries of foreign enterprises, process and functional upgrading tendencies within the existing value chains as well as the establishment of Hungary’s own brand products for niche markets are the most important issues in this respect. This study is built upon two key questions: (1) What kind of dynamics does the Hungarian footwear industry show during its integration into the (global) production networks of the sector? (2) How are global production networks becoming embedded into the local economy; and to what extent can the transformation of the Hungarian footwear industry be considered as a path- and place-dependent process? The empirical research is based on semi-structured and in-depth interviews carried out in the last three years with representatives of enterprises from eleven industrial locations – comprising about 35 % of the total sectoral employment – in addition to sector-relevant national and local institutions.

A Substantive Theory of Transnational Governance

2018 ◽  
Author(s):  
Tim Bartley
Keyword(s):  
Environmental Standards ◽  
Transnational Governance ◽  
Production Networks ◽  
Global Production Networks ◽  
Special Significance ◽  
Social Scientists ◽  
Private Regulation ◽  
Substantive Theory ◽  
Private Authority ◽  
Differential Performance

Social scientists have theorized the rise of transnational private authority, but knowledge about its consequences remains sparse and fragmented. This chapter builds from a critique of “empty spaces” imagery in several leading paradigms to a new theory of transnational governance. Rules and assurances are increasingly flowing through global production networks, but these flows are channeled and reconfigured by domestic governance in a variety of ways. Abstracting from the case studies in this book, a series of theoretical propositions specify the likely outcomes of private regulation, the influence of domestic governance, the special significance of territory and rights, and several ways in which the content of rules shapes their implementation. As such, this theory proposes an explanation for differences across places, fields, and issues, including the differential performance of labor and environmental standards.

Transnational Standards and Empty Spaces

2018 ◽  
Author(s):  
Tim Bartley
Keyword(s):  
Global Economy ◽  
Comparative Approach ◽  
Transnational Governance ◽  
Production Networks ◽  
Global Production Networks ◽  
Global Order ◽  
Private Regulation ◽  
Middle Income ◽  
Middle Income Countries ◽  
Making Sense

A vast new world of transnational standards has emerged, covering issues from human rights to sustainability to food safety. This chapter develops a framework for making sense of this new global order. It is tempting to imagine that global rules can and should bypass corrupt, incapacitated, or illegitimate governments in poor and middle-income countries. This assumption must be rejected if we want to understand the consequences of global rules and the prospects for improvement. After showing how a combination of social movements, global production networks, and neoliberalism gave rise to transnational private regulation, the chapter builds the foundations for the comparative approach of this book. The book’s comparative analysis of land and labor in Indonesia and China sheds light on two key fields of transnational governance, their implications in democratic and authoritarian settings, and the problems of governing the global economy through private regulation.

scholarly journals Ever-increasing viral diversity associated with the red imported fire ant Solenopsis invicta (Formicidae: Hymenoptera)

2021 ◽  
Vol 18 (1) ◽  
Author(s):  
César Augusto Diniz Xavier ◽  
Margaret Louise Allen ◽  
Anna Elizabeth Whitfield
Keyword(s):  
Solenopsis Invicta ◽  
De Novo ◽  
Rna Virus ◽  
Housekeeping Genes ◽  
Virus Genome ◽  
Single Strand ◽  
Viral Diversity ◽  
Red Imported Fire Ant ◽  
Sequence Comparisons ◽  
Data Set

Abstract Background Advances in sequencing and analysis tools have facilitated discovery of many new viruses from invertebrates, including ants. Solenopsis invicta is an invasive ant that has quickly spread worldwide causing significant ecological and economic impacts. Its virome has begun to be characterized pertaining to potential use of viruses as natural enemies. Although the S. invicta virome is the best characterized among ants, most studies have been performed in its native range, with less information from invaded areas. Methods Using a metatranscriptome approach, we further identified and molecularly characterized virus sequences associated with S. invicta, in two introduced areas, U.S and Taiwan. The data set used here was obtained from different stages (larvae, pupa, and adults) of S. invicta life cycle. Publicly available RNA sequences from GenBank’s Sequence Read Archive were downloaded and de novo assembled using CLC Genomics Workbench 20.0.1. Contigs were compared against the non-redundant protein sequences and those showing similarity to viral sequences were further analyzed. Results We characterized five putative new viruses associated with S. invicta transcriptomes. Sequence comparisons revealed extensive divergence across ORFs and genomic regions with most of them sharing less than 40% amino acid identity with those closest homologous sequences previously characterized. The first negative-sense single-stranded RNA virus genomic sequences included in the orders Bunyavirales and Mononegavirales are reported. In addition, two positive single-strand virus genome sequences and one single strand DNA virus genome sequence were also identified. While the presence of a putative tenuivirus associated with S. invicta was previously suggested to be a contamination, here we characterized and present strong evidence that Solenopsis invicta virus 14 (SINV-14) is a tenui-like virus that has a long-term association with the ant. Furthermore, based on virus sequence abundance compared to housekeeping genes, phylogenetic relationships, and completeness of viral coding sequences, our results suggest that four of five virus sequences reported, those being SINV-14, SINV-15, SINV-16 and SINV-17, may be associated to viruses actively replicating in the ant S. invicta. Conclusions The present study expands our knowledge about viral diversity associated with S. invicta in introduced areas with potential to be used as biological control agents, which will require further biological characterization.

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