Argentina's investment outlook improves for now

2021 ◽  
Keyword(s):  
Private Consumption ◽  
Import Substitution ◽  
Global Value Chains ◽  
Manufacturing Industries ◽  
Public Works ◽  
Value Chains ◽  
Content Type ◽  
Fiscal Adjustment ◽  
Manufacturing Sectors ◽  
Import Restrictions

Significance The rebound of commodities prices fuelled new investments in agroindustry and the energy and mining sectors, while the lifting of lockdown measures helped to boost private consumption, triggering new investments to expand production. Import restrictions drove import substitution in many manufacturing industries, while public works and lower dollar costs boosted construction. Impacts New investments in mining, energy and agriculture would enhance productivity and Argentina’s role as a commodity producer. Some manufacturing sectors will benefit from import substitution while others will focus on their role in global value chains. Political instability may undermine the investment recovery, while any fiscal adjustment would hit construction.

Asian investments target large Latin American markets

2021 ◽  
Keyword(s):  
Supply Chains ◽  
Latin American ◽  
High Technology ◽  
Global Value Chains ◽  
Value Chains ◽  
Automated Manufacturing ◽  
Investment Climate ◽  
Content Type ◽  
South Korean ◽  
Technology Investment

Significance Major Japanese and South Korean conglomerates are driving adoption of automated manufacturing, digitalisation of supply chains and other technologies critical to the region’s competitiveness. However, the pandemic forced many investors, especially mid-sized firms, to refocus on Asian markets. Increasingly, Latin America’s investment climate will be shaped by growing US-China rivalries. Impacts Investment from Japanese and Korean companies is critical for the region’s competitiveness in increasingly digitalised global value chains. Smaller economies risk missing out on the benefits of high-technology investment from Japan and Korea, concentrated in Brazil and Mexico. US efforts to try to decouple global value chains from China have sparked interest in investing in the region, but to date lack substance.

Disappearing natural resources: what flowers tell us about new value chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guillaume Carton ◽  
Julia Parigot
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Resource Depletion ◽  
Global Value Chains ◽  
Value Chains ◽  
Cut Flower ◽  
Resource Exploitation ◽  
Content Type ◽  
Natural Resource Exploitation ◽  
Natural Resource Depletion

Purpose This paper aims to question the capacity of firms embedded in global value chains to manage their natural resources in a sustainable way. Thus, it offers guidelines for more sustainable value chains. Design/methodology/approach While business strategies have focused on optimizing natural resource exploitation and on constructing global value chains to face sustainability issues, this study first explains why these strategies are not effective in preventing natural resource depletion. Second, it offers a model for anticipating resource depletion. The cut flower industry constitutes a central case to explain the model. Two other industry cases complement the demonstration. Findings To anticipate natural resource depletion and thus improve industry sustainability, firms must shift from the exploitation of endangered natural resources to the use of alternative local ones. This shift, however, encourages firms to reconstruct value chains and rethink how they create value within these new value chains. It also has an impact on firms’ growth strategy: they must replicate value chains on a local scale instead of taking part in global value chains. Research limitations/implications The findings rely on illustrations from the cut flower, fishing and textile fiber industries. Generalization to other industries may strengthen the argument. Originality/value This study offers a model of sustainable growth for firms willing to anticipate natural resource depletion by offering a shift in value chains. It consists of exploiting alternative natural resources and of rethinking the value offered to consumers. Thus, it goes against current models that merely focus on optimizing natural resource exploitation within global value chains.

Refining of FDI motivations by integrating global value chains’ considerations

2015 ◽  
Vol 23 (1) ◽  
pp. 67-76 ◽  
Author(s):  
Axèle Giroud ◽  
Hafiz Mirza
Keyword(s):  
Multinational Enterprises ◽  
Global Value Chains ◽  
Global Scale ◽  
Policy Implications ◽  
Value Chains ◽  
Economic Activities ◽  
Content Type ◽  
Geographically Dispersed ◽  
Novel Approach ◽  
Investment Motivations

Purpose – The purpose of this paper is to show how the nature of the activities conducted by multinational enterprises globally and the governance modes are changing. Essentially, multinational enterprises (MNEs) structure and organize their activities in a more complex, fragmented and geographically dispersed manner. In this paper, the authors suggest that the evolution of MNEs and the rising importance of global value chains (GVCs) require a refinement of FDI motivations rather than a drastic change in the existing categories. The authors begin with a historical overview of evolving firms’ international strategies and FDI motivations, before developing arguments to support the view that the fine slicing of economic activities on a global scale, and the combination of governance modalities ought to be integrated into the presentation of investment motivations. The discussion ends with implications for governments and policymaking. Design/methodology/approach – This paper is a conceptual paper. Findings – Key suggestions to refine the presentation of investment motivations are presented, together with policy recommendations. Originality/value – This paper provides a novel approach to ways of refining investment motivations by integrating GVC considerations, and drawing policy implications from this process.

Huawei dispute risks escalating reprisals from China

2019 ◽  
Keyword(s):  
East Asia ◽  
North American ◽  
Global Value Chains ◽  
Value Chains ◽  
South East Asia ◽  
Business Climate ◽  
Chinese Firms ◽  
Content Type ◽  
Fast Growing ◽  
Lower Wage

Significance The development raises the prospect of retaliation against North American companies from Beijing, which is already incensed by US tariffs and restrictions on technology exports and investment. This fear is reinforced by the recent arrest in China of two Canadians and an Australian. Impacts Lower-wage countries have an incentive to streamline their domestic business climate, but reforms will be slow. Chinese firms will increase their investment in fast-growing South and South-east Asia. This will accelerate the trend towards fewer global value chains and more regional ones.

Supporting participation of Asia-Pacific SMEs in global value chains

2017 ◽  
Vol 21 (2) ◽  
pp. 86-106 ◽  
Author(s):  
Masato Abe ◽  
Marc Proksch
Keyword(s):  
Regional Integration ◽  
Innovation System ◽  
Global Value Chains ◽  
Asia Pacific ◽  
Value Chains ◽  
Policy Options ◽  
Content Type ◽  
Investment Promotion ◽  
The Pacific ◽  
Effective Development

Purpose Global value chains (GVCs) have become increasingly influential in determining the patterns of international trade and foreign direct investment (FDI) and in providing growth opportunities in Asia and the Pacific while small- and medium-sized enterprises (SMEs) have been an engine of economic development. The purpose of this paper is to provide effective development strategies and relevant policy approaches to facilitate dynamic insertion of SMEs into GVCs. Design/methodology/approach This paper was developed based on various Economic and Social Commission for Asia and the Pacific works in the fields of the development of SMEs and GVCs in Asia and the Pacific. Sectoral case studies on agribusiness, garment/apparel, automotive and electronics illustrate SMEs’ effective integration into GVCs. Findings SMEs face multiple obstacles and challenges which may limit the benefits derived from the development of GVCs in Asia and the Pacific. Policymakers are suggested to design and implement appropriate strategies and polices in order to facilitate the development of SMEs under the ongoing globalization. Research limitations/implications This paper is mainly based on existing policy papers which were developed by the United Nations Secretariat, its specialized agencies and others. Further empirical and policy studies are expected to be conducted in order to deepen the understanding of the present topics and to come up with practical policy options. Practical implications Policymakers are suggested to consider strategies and policy options recommended by this paper for their works on SME development and trade and investment promotion. Originality/value This is the first policy paper which proposes a comprehensive framework for SMEs’ effective participation in GVCs, specifically suggesting seven approaches, namely, SME development; trade policy; behind-the-border and cross-border trade facilitation; regional integration frameworks; FDI promotion; SME clusters; and national innovation system.

Manufacturing and value-added dynamics in global value chains: the case of Italy

2020 ◽  
Vol 30 (4) ◽  
pp. 457-470
Author(s):  
Chiara Burlina ◽  
Eleonora Di Maria
Keyword(s):  
Design Methodology ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Content Type ◽  
New Methods ◽  
Trade In Value Added ◽  
Revealed Comparative Advantage Index ◽  
Over Time ◽  
Made In

Purpose This paper aims to provide a snapshot of various countries’ contributions to value produced along global value chains (GVCs). It focusses on manufacturing activities and their evolution over time, in the context of GVC regionalisation. Design/methodology/approach The Trade in Value Added (TiVA) and World Integrated Trade Solution databases for the period of 2005-2015 were used to explore the case of Italy and its industries’ specialisations (Made in Italy): fashion, furniture, automotive and machinery traditionally organised into clusters. Various analyses were used to show the dynamics of gross import–export and imported–exported value-added. Moreover, the revealed comparative advantage index was computed to test whether the Made in Italy sector remains a source of competitive advantage for Italy within GVCs. Findings The results highlight how the geography of value-added is changing over time, with growing importance placed on the countries close to Italy and with a different pace according to each considered GVC. Originality/value The paper applied new methods to compare trade and analyse value-added dynamics through a recent database released by the Organization for Economic Co-operation and Development within the TiVA initiative that is useful for scholars and policymakers.

Global value chains in the MedTech industry

2019 ◽  
Vol 15 (1) ◽  
pp. 70-92
Author(s):  
Jana Vlckova ◽  
Bublu Sarbani Thakur-Weigold
Keyword(s):  
Czech Republic ◽  
Core Competencies ◽  
Value Added ◽  
Global Value Chains ◽  
Business Environment ◽  
Economic Outcomes ◽  
Weak Links ◽  
Value Chains ◽  
The Czech Republic ◽  
Content Type

Purpose Medical technology (MedTech) is a growth industry, which like other manufacturing sectors has undergone fragmentation of production and emergence of Global Value Chains (GVCs). The purpose of this paper is to compare how two open European economies position themselves competitively within MedTech GVCs: highly developed Switzerland and the emerging Czech Republic. Design/methodology/approach The research applies a mixed methodology to analyze the performance of each location in the MedTech GVCs. It draws on macroeconomic, industry, trade and a proprietary sample of firm data, combined with onsite interviews. Findings The economic outcomes and GVC positions differ in both cases, whereas Switzerland focuses on high value-added activities such as R&D and after-sales service. Specialized manufacturing is also located here in spite of high costs. By contrast, the Czech Republic focuses mostly on low value-added activities, like manufacturing disposables, although some domestic innovative companies are notable. The authors generalize four types of firms in the industry, comparing their presence in both locations. Practical implications The competitive positions and challenges faced by each location when engaging in MedTech GVCs are summarized and related to economic outcomes. In the Czech Republic, the barriers to upgrading include its business environment, and weak links between education institutions and industry. Switzerland’s high cost structure is offset by adding high value in core competencies. Both countries should protect the inherent advantage their locations offer within responsive European supply chains. Originality/value GVC research in the MedTech sector has been limited. There is no comparison of two European countries, and their position in MedTech GVCs, nor of how firms, participate successfully in them.

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 Carbon footprint stock analysis of US manufacturing: a time series input-output LCA

2017 ◽  
Vol 117 (5) ◽  
pp. 853-872 ◽  
Author(s):  
Gokhan Egilmez ◽  
Khurrum Bhutta ◽  
Bulent Erenay ◽  
Yong Shin Park ◽  
Ridvan Gedik
Keyword(s):  
Time Series ◽  
Life Cycle Assessment ◽  
Supply Chain ◽  
Life Cycle ◽  
Carbon Footprint ◽  
Manufacturing Industries ◽  
Input Output ◽  
Content Type ◽  
The Us ◽  
Manufacturing Sectors

Purpose The purpose of this paper is to provide an input-output life cycle assessment model to estimate the carbon footprint of US manufacturing sectors. To achieve this, the paper sets out the following objectives: develop a time series carbon footprint estimation model for US manufacturing sectors; analyze the annual and cumulative carbon footprint; analyze and identify the most carbon emitting and carbon intensive manufacturing industries in the last four decades; and analyze the supply chains of US manufacturing industries to help identify the most critical carbon emitting industries. Design/methodology/approach Initially, the economic input-output tables of US economy and carbon footprint multipliers were collected from EORA database (Lenzen et al., 2012). Then, economic input-output life cycle assessment models were developed to quantify the carbon footprint extents of the US manufacturing sectors between 1970 and 2011. The carbon footprint is assessed in metric tons of CO2-equivalent, whereas the economic outputs were measured in million dollar economic activity. Findings The salient finding of this paper is that the carbon footprint stock has been increasing substantially over the last four decades. The steep growth in economic output unfortunately over-shadowed the potential benefits that were obtained from lower CO2 intensities. Analysis of specific industry results indicate that the top five manufacturing sectors based on total carbon footprint share are “petroleum refineries,” “Animal (except poultry) slaughtering, rendering, and processing,” “Other basic organic chemical manufacturing,” “Motor vehicle parts manufacturing,” and “Iron and steel mills and ferroalloy manufacturing.” Originality/value This paper proposes a state-of-art time series input-output-based carbon footprint assessment for the US manufacturing industries considering direct (onsite) and indirect (supply chain) impacts. In addition, the paper provides carbon intensity and carbon stock variables that are assessed over time for each of the US manufacturing industries from a supply chain footprint perspective.

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