scholarly journals Investigating ASEAN’s Participation in Global Value Chains: Production Fragmentation and Regional Integration

2021 ◽  
Vol 38 (02) ◽  
pp. 159-188
Author(s):  
SHENG ZHONG ◽  
BIN SU
Keyword(s):  
Economic Integration ◽  
Emerging Economies ◽  
Regional Integration ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Advanced Economies ◽  
New Evidence ◽  
Do So

This paper focuses on the Association of Southeast Asian Nations (ASEAN)—a major final assembler in production—where studies and evidence on the role of the region in global value chains are limited. We seek to provide new evidence regarding the extent and patterns of international fragmentation in ASEAN. To do so, we derive the foreign value-added shares of final products for all global value chains of ASEAN. Using the Asian Development Bank’s multiregional input–output tables for 2000–2017, we document a series of stylized facts. The results show declining foreign value-added shares in ASEAN. Regional economic integration within ASEAN has increased, while value-added contributions vary widely across its members. We find evidence of increasing value-added contributions from emerging economies to ASEAN, whereas the contributions from advanced economies have declined.

scholarly journals Global value chains and technology transfer: new evidence from developing countries

2020 ◽  
Author(s):  
Davide Rigo
Keyword(s):  
Technology Transfer ◽  
Emerging Economies ◽  
Global Value Chains ◽  
Value Chains ◽  
Foreign Technology ◽  
Technology Firms ◽  
Transfer Of Technology ◽  
Enterprise Surveys ◽  
New Evidence ◽  
Positive Effect

Abstract International trade has long been considered a channel of technology transfer. This paper draws from the World Bank’s Enterprise Surveys to provide a sample of 18 developing and emerging economies to investigate whether global value chains (GVCs) are a vehicle for the transfer of technology. It focuses on one specific channel for technology transfer, namely, the licensing of foreign technology. To control for the possible endogeneity of technology licensing, propensity score matching is combined with a difference-in-differences approach. The results show a positive effect of being involved in two-way trading on the licensing of foreign technology. Firms that become two-way traders are significantly more likely to use foreign-licensed technology than firms starting to export or import. This evidence suggests that the complexity associated with the mode of internationalisation determines the licensing of foreign technology. GVC participation also appears to foster firms’ performance, reflecting my findings that the acquisition of foreign technology leads to significant productivity improvements.

Varieties of Compressed Development

2020 ◽  
pp. 113-138
Author(s):  
D. Hugh Whittaker ◽  
Timothy J. Sturgeon ◽  
Toshie Okita ◽  
Tianbiao Zhu
Keyword(s):  
Economic Development ◽  
Developed Countries ◽  
Global Value Chains ◽  
The State ◽  
Value Chains ◽  
Less Developed Countries ◽  
Large Market ◽  
Role Of The State ◽  
Do So

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.

scholarly journals The CEECs in global value chains: The role of Germany

2018 ◽  
Vol 68 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Łukasz Ambroziak
Keyword(s):  
Value Added ◽  
Global Value Chains ◽  
European Countries ◽  
Value Chains ◽  
Eastern European ◽  
The Czech Republic ◽  
Eastern European Countries ◽  
Fragmentation Of Production ◽  
Backward Linkages

This paper aims to present the role of Germany in the global value chains (GVCs) of 10 Central and Eastern European countries (CEECs) in 1995–2011. GVCs, being a result of the fragmentation of production processes, have changed the nature of economic globalisation. The study covers five Central European countries (CECs) (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the three Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania. Germany is chosen because it is the main trading partner of the majority of the CEECs. The illustration of the position of Germany in GVCs of the CEECs is based on trade statistics in value added terms. The research results show that Germany has become an engine of increasing integration of the CECs in the GVCs. The role of Germany as a supplier of inputs to the CECs’ exports (backward linkages) is larger than its role as an exporter of value added originating from the CECs (forward linkages).

scholarly journals Regional economic integration via detection of circular flow in international value-added network

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0255698
Author(s):  
Sotaro Sada ◽  
Yuichi Ikeda
Keyword(s):  
Natural Resources ◽  
Economic Integration ◽  
Value Added ◽  
Global Value Chains ◽  
Pacific Rim ◽  
Value Chains ◽  
High Tech ◽  
European Economic ◽  
Circular Flow ◽  
The Pacific

Global value chains are formed through value-added trade, and some regions promote economic integration by concluding regional trade agreements to promote these chains. However, it has not been established to quantitatively assess the scope and extent of economic integration involving various sectors in multiple countries. In this study, we used the World Input–Output Database to create a cross-border sector-wise network of trade in value-added (international value-added network) covering the period of 2000–2014 and evaluated them using network science methods. By applying Infomap to the international value-added network, we confirmed two regional communities: Europe and the Pacific Rim. We applied Helmholtz–Hodge decomposition to the value-added flows within the region into potential and circular flows, and clarified the annual evolution of the potential and circular relationships between countries and sectors. The circular flow component of the decomposition was used to define an economic integration index. Findings confirmed that the degree of economic integration in Europe declined sharply after the economic crisis in 2009 to a level lower than that in the Pacific Rim. The European economic integration index recovered in 2011 but again fell below that of the Pacific Rim in 2013. Moreover, sectoral economic integration indices suggest what Europe depends on Russia in natural resources makes the European economic integration index unstable. On the other hand, the indices of the Pacific Rim suggest the steady economic integration index of the Pacific Rim captures the stable global value chains from natural resources to construction and manufactures of motor vehicles and high-tech products.

Services and Global Value Chains: Servicification of Manufacturing and Services Networks

2015 ◽  
Vol 06 (03) ◽  
pp. 1550014 ◽  
Author(s):  
Rainer Lanz ◽  
Andreas Maurer
Keyword(s):  
Developing Economies ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Evidence Based ◽  
Measurement Issues ◽  
International Services ◽  
Trade In Value Added

The role of services as an input into manufacturing production — often termed "servicification" of manufacturing — is substantial in both developed and developing economies. The paper lays out conceptual and measurement issues related to services networks and provides evidence based on trade in value added statistics. Compared to goods value chains, services networks appear less fragmented internationally based on trade in value added statistics and survey evidence. However, to better capture the international services fragmentation, advances in statistics by enterprise characteristics and by mode of supply, i.e., taking into account the movement of labor and capital, are required.

scholarly journals Economic upgrading in global value chains

2020 ◽  
Vol 19 ◽  
pp. e020002
Author(s):  
Marília Bassetti Marcato ◽  
Carolina Troncoso Baltar
Keyword(s):  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Economic Perspective ◽  
Vast Literature ◽  
Economic Upgrading ◽  
Theoretical Apparatus ◽  
Positive Spillovers ◽  
Social Upgrading

This paper has critically documented a vast literature addressing the multi-layered outcomes associated with participating in global value chains (GVCs). In particular, this paper reviews and synthesizes the definitions and quantitative measures of one particular dimension of the GVC analysis that is two-fold: the economic and social upgrading. More specifically, we discuss the economic perspective of upgrading, which is usually associated with “moving into higher value-added stages”, and it is commonly assumed to be followed by positive spillovers regarding technology and productivity. This paper emphasizes the important diversity of definitions and measures within the GVC literature, considering it as a reflection, to a certain extent, of the absence of a systematic theoretical apparatus in the GVC literature. The paper concludes with some considerations on the role of policymakers in promoting social upgrading as an important topic in the GVC research agenda.

scholarly journals Peculiarities of the EEU countries interaction in pharmaceutical value chains in pandemic period

2021 ◽  
Vol 114 ◽  
pp. 01025
Author(s):  
Elena Frolova ◽  
Irina Turgel ◽  
Alexander Ishukov ◽  
Zulparuza Abdurahmanova
Keyword(s):  
International Economic ◽  
Pharmaceutical Industry ◽  
Economic Integration ◽  
Global Value Chains ◽  
Pharmaceutical Products ◽  
Added Value ◽  
Value Chains ◽  
Eurasian Economic Union ◽  
Economic Union

Taking into account that new trends are emerging in the field of international economic integration in pandemic world the authors aimed to study the role of the country's participation in global value chains (GVCs) in the development of the Eurasian Economic Union (EEU or EAEU) national pharmaceutical industry. The article reveals the contradictory essence of modern concepts of interaction between the countries of integration associations and GVCs including its specificity for the EEU. An analysis of the pharmaceutical industry in EEU before and in the pandemic is carried out, and the features of such interaction are revealed in more detail in Kazakhstan case. The results showed the presence of low volumes of pharmaceutical products in EEU intraregional trade and minimum presence in GVCs. The hypothesis was partially confirmed that the countries localized the GVC “production” stage on their territory received gain as the increase in domestic production in pandemic period, despite the fact that this stage corresponds to low added value. The novelty is in the development of a reproductive approach to the study of integration groups. Recommendations are given to increase the share of economic entities of the EEU countries in the process of forming regional value chains.

The Role of International Standards in the Development of Global Value Chains

Upravlenie ◽  
10.12737/8792 ◽  
2015 ◽  
Vol 3 (1) ◽  
pp. 80-87
Author(s):  
Зуев ◽  
V. Zuev ◽  
Островская ◽  
Yelyena Ostrovskaya ◽  
Мануйлов ◽  
...  
Keyword(s):  
Value Chain ◽  
Small Businesses ◽  
Small Firms ◽  
Value Added ◽  
Global Value Chains ◽  
International Standards ◽  
Value Chains ◽  
Positive Effects ◽  
International Standardization

This paper is devoted to the influence of standardization on emergence and development of global value chains (GVC). Nowadays trade in value added is the subject for heated debates. However, the role of standardization (in particular, international standardization) is highly underestimated. The study examines the history of the development of different types of standards, comparing different approaches to modeling the processes of standardization and develops recommendations for the economic policy of Russia on the basis of its present position in the GVC. At the moment, we can say unambiguously that standardization leads to the shift of firms from upstream stages of production to the field of design and marketing, where a greater chance to realize competitive advantages exists (downstream stages). For Russia, it means continuous improvement in the following areas: the development of large and small businesses in sectors that are not related to the energy, encouraging companies to establish supply chains and value chains, customer orientated businesses. In addition to the positive effects of standardization, the article also reviews some negative shocks. They occur when the standards are being introduced to small firms, or when accepted standards are not harmonized in accordance with international standards, or when there are no resources for modernization within the global value chain, or when there are no opportunities to move into new markets where standardization is lower, or when different standards are set to reach controversial objectives. Nevertheless, in all these cases, there are certain conditions which implementation will make standardization the most effective. These include, for example, a balance between the amount of the factor used in the production and the complexity of the technology. This condition is explained here both mathematically and by the example of the Chinese national program for certification of organic products. Thus, the importance of international standardization for the development of global value chains cannot be overstated, despite possible negative effects. That is why Russia should be actively involved in all of these processes in order to stimulate economic growth.

Assessment of the positions of the exporting countries of agri-food products on the world market according to their role in global value chains

2021 ◽  
pp. 8-14
Author(s):  
Elena Yu. Frolova ◽  
Keyword(s):  
Raw Materials ◽  
Action Plan ◽  
Value Added ◽  
Global Value Chains ◽  
World Market ◽  
Point Of View ◽  
Value Chains ◽  
Agricultural Exports ◽  
Export Policy ◽  
The World

The place in the rankings of agricultural exporting countries in world trade is estimated in terms of the volume of imports and exports of raw materials and food. However, to assess the efficiency of agricultural exports, it is important to analyze the value added of exported goods produced in the country. The position of the exporting country in global value chains is derived from the type of agricultural production, which in turn depends on the level of development of the national economy, the availability and breadth of use of modern high technologies. The article examines the concept of the development of world agriculture from the point of view of the formation of global value chains, set out in the report of the UN World Food Organization [1] in comparison with the political decisions of such countries as India and the People’s Republic of China in the development of agricultural and food exports. The paper analyzes the risks associated with the consolidation of developing countries as suppliers of agricultural raw materials, as well as the conditions and action plan that allow the country-exporter of agricultural raw materials to move to higher levels in the global value chains on the world market. This experience should be considered to make comprehensive and effective decisions on the formation of the export policy of agricultural products and food of the Russian Federation, considering the food security of the country.

Russia–ASEAN: Trade and Global Value Chains

2015 ◽  
pp. 25-39
Author(s):  
K. Muradov
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Trade Data ◽  
Traded Goods ◽  
Trade In Value Added

Traditional trade statistics that originate in customs records is inadequate to measure the complex interdependencies in today’s globalized economy, or what is known as the global value chains. The article focuses on Russia–ASEAN trade. The author applies innovative methods of measuring trade in value added terms in order to capture the unobserved bilateral linkages behind the officially recorded trade flows. First, customs and balance of payments sources of bilateral trade data are briefly reviewed. For user, there are at least two inherent problems in those data: the inconsistencies in “mirror” trade flows and the attribution of the origin of a traded product wholly to the exporting country. This results in large discrepancies between Russian and ASEAN “mirror” trade data and, arguably, their low importance as each other’s trade partners. Next, the author explores new data from inter-country input-output tables that necessarily reconcile bilateral differences and offer greater detail about the national and sectoral origin or destination of traded goods and services. Relevant data are derived from the OECD-WTO TiVA database and are rearranged to obtain various estimates of Russia–ASEAN trade in value added in 2009. The main finding is that sizable amount of the value added of Russian origin is embodied in third countries’ exports to ASEAN members and ASEAN members’ exports to third countries. As a result, the cumulative flow of Russia’s value added to ASEAN members is estimated to be 62% larger than the direct gross exports, whereas for China and South Korea it is, respectively, 21% and 23% smaller. The indirect, unobserved value added flows can be largely explained by the use of Russian energy resources, chemicals and metals as imported inputs in third countries (China, South Korea) and ASEAN members’ own production. The contribution of these inputs is then accumulated along the value chain. Finally, the most important sectoral value chains are visualized for readers’ convenience. So far, it’s apparent that Russia is linked to ASEAN countries through intricate production networks and indirectly contributes to their trade with third countries.

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