Thucydides Trap, Global Value Chain, and Future of China

2021 ◽  
pp. 218-238
Author(s):  
Keun Lee
Keyword(s):  
Value Chain ◽  
High Technology ◽  
Developmental State ◽  
Global Value Chain ◽  
Middle Income ◽  
The Us ◽  
Rise Of China ◽  
Thucydides Trap ◽  
Made In China ◽  
Economic Stabilization

Chapter 10 analyzes the issue of whether China would fall into the Thucydides trap, which is defined here as a situation where the US causes China to stop expanding as an economic power. Before the Trump administration, China was navigating steadily to grow beyond the middle-income trap (MIT), building its China-led global value chain (GVC) and localizing formerly imported goods into domestic production. However, it suddenly faced another trap, of Thucydides, because of the US measures for containing the further rise of China as a superpower. China will not collapse unless the US dares to wage an all-out war by taking drastic measures across various fronts of confrontation. The sudden emergence of this new trap disrupted the China-led GVC formed around Asia, which still relies on the West for key high-technology goods. Such disruption would have further repercussions on the prospect of China’s growth beyond the MIT because China must now reallocate resources away from economic competitiveness and “Made in China 2025” to socio-economic stabilization and job creation. China remains a developmental state. Its Asian neighbors have gone through their path of political democratization, but China now faces the challenge of crossing this unknown territory. This situation may be a more challenging trap compared with the MIT and the Thucydides trap. Thus, China now faces triple traps.

scholarly journals The New Triangular Relationship between the US, China, and Latin America: The Case of Trade in the Autoparts-Automobile Global Value Chain (2000–2019)

2021 ◽  
pp. 186810262110246
Author(s):  
Enrique Dussel Peters
Keyword(s):  
Latin America ◽  
Value Chain ◽  
Structural Changes ◽  
Value Chains ◽  
Future Research ◽  
Global Changes ◽  
Global Value Chain ◽  
The Us ◽  
The Caribbean ◽  
Triangular Relationship

During 2000–2019, the autoparts-automobile global value chain (AAGVC) underwent significant structural changes from a number of perspectives: micro, meso, or inter-firm relations, macroeconomic, and territorial shifts. This document will focus on recent trade debates on the “new triangular relationship” between the US–China and Latin America and the Caribbean (LAC), and Mexico, and specifically on trade in the AAGVC during 2000–2019. In addition to the discussion on global value chains (GVCs) and its implications, the document analyses in detail qualitative and quantitative global changes in the AAGVC and specifically in US imports during 2000–2019, highlighting the performance of Mexico and China in trade, tariffs, and transportation costs. Conclusions include a set of future research topics.

scholarly journals Global Value Chain Upgrading and Business-academia Collaborations: Case Studies of Successful Innovators

Triple Helix ◽  
2021 ◽  
pp. 1-43
Author(s):  
Agnė Paliokaitė ◽  
Elžbieta Jašinskaitė ◽  
Marek Tiits
Keyword(s):  
Case Studies ◽  
Value Chain ◽  
Labour Force ◽  
Research Question ◽  
Global Value Chain ◽  
Eastern European ◽  
Middle Income ◽  
Eastern European Countries ◽  
And Training ◽  
Collaboration Types

Abstract The article links upgrading in the global value chains with the triple helix concept by focusing on business-academia collaborations that played a part in firms’ capacity to upgrade. Both are crucial for Central Eastern European countries, which face the need to restructure their economies and escape the “middle income trap”. The article asks the following research question: how can public policy encourage business-academia collaboration or other types of activities that contribute to firm upgrading? Data on four different case studies in Lithuania is analysed to answer this question. Results indicate that building endogenous technological capacity through a variety of business-university collaboration types is needed to attract higher-value foreign direct investment and facilitate intersectoral and functional global value chain upgrading. Furthermore, besides research and development, educating and training the labour force are likely to be even more poweful drivers for business-academia collaboration in Central and Eastern Europe.

scholarly journals Labour challenges in Ethiopia’s textile and leather industries: no voice, no loyalty, no exit?

2019 ◽  
Vol 118 (473) ◽  
pp. 712-736 ◽  
Author(s):  
Vincent Hardy ◽  
Jostein Hauge
Keyword(s):  
Working Conditions ◽  
Value Chain ◽  
Developmental State ◽  
Global Value Chains ◽  
Foreign Firms ◽  
Value Chains ◽  
Global Value Chain ◽  
Individual Action ◽  
Collective Voice ◽  
Rapid Industrialization

Abstract A state-led industrialization push inspired by the East Asian ‘developmental state’ model is at the centre of Ethiopia’s recent economic success. This model has historically proved potent for achieving rapid industrialization, but the business-state alliance at the heart of the model generally aimed to curb the power of labour. Focusing on textile and leather manufacturing in Ethiopia, this article addresses two questions: are workers capable of extracting gains from the process of industrialization, and have the actions of workers affected global value chain integration in the two industries? Our data show that opportunities for collective voice among workers are limited. However, workers have expressed their discontent by leaving employers when working conditions fail to meet their expectations. The resulting turnover has generated significant obstacles for local and foreign firms attempting to participate in global value chains. In response, the Ethiopian state and employers implemented a number of measures, including restrictions on emigration and more generous non-wage benefits. Recent research on global value chains and labour highlights how workers are able to influence work practices through individual action. The present article builds on these ideas, but shows that firms and governments have the ability to respond and limit this power.

The Changing Patterns of North Korea’s International Film Co-Productions Since the 1980s: A Global Value Chain Approach

2020 ◽  
pp. 83-108
Author(s):  
Moon Hwy-Chang ◽  
Wenyang Yin
Keyword(s):  
Value Chain ◽  
North Korea ◽  
Film Industry ◽  
International Standards ◽  
The Political ◽  
Global Value Chain ◽  
Comprehensive Understanding ◽  
Changing Patterns ◽  
Film Productions

Although North Korea is one of the most closed countries in the world, it has long been pursuing international cooperation with other countries in order to upgrade the quality of its film industry to international standards. Preceding studies on this topic have mainly focused on the political influences behind filmmaking in general and very few studies have exclusively dealt with North Korea’s international co-productions. In this respect, in order to develop a comprehensive understanding of the internalization strategy of North Korea’s film productions, this paper uses the global value chain as a framework for analysis. This approach helps understand the internationalization pattern of each value chain activity of film co-productions in terms of the film location and the methods for collaborating with foreign partners. By dividing the evolution of North Korea’s international co-productions into three periods since the 1980s, this paper finds that although North Korea has shown mixed results with different aspects of the film value chain, it has generally improved its internationalization over the three periods. This paper further provides strategic directions for North Korea by learning some of the successful Chinese experiences in the film sector regarding collaboration with foreign partners—to foster a win-win situation for all involved parties.

An Analysis of Global Value Chain of Agricultural and Food Products

2018 ◽  
Vol 59 (2) ◽  
pp. 61-84
Author(s):  
Yunsun Park ◽  
◽  
Oh-Sang Kwon ◽  
Keyword(s):  
Value Chain ◽  
Food Products ◽  
Global Value Chain
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