Investigating the Core–Periphery Relationship in the Southern African Customs Union

2020 ◽  
pp. 003464462096304
Author(s):  
Malefa Rose Malefane
Keyword(s):  
South Africa ◽  
Regional Integration ◽  
Value Added ◽  
Value Chains ◽  
Customs Union ◽  
Productive Capacity ◽  
The Core ◽  
Cross Border ◽  
Key Indicators ◽  
Economic Size

This study explores the relevance of the core–periphery relationship in the Southern African Customs Union (SACU), a union comprising five highly unequal economies. In the analysis, the study employs five key indicators: economic size, trade logistics and facilitation, regional integration, and intra-SACU trade, to assess the main aspects underlying the core–periphery relationship in the union. The findings of this study point to dominance-dependency behavior within the union, where South Africa is the dominant core while Botswana, Lesotho, Namibia, and eSwatini are the dependent periphery. Based on the findings, the recommendations are that SACU countries should, among other strategies, identify ways of promoting high-value-added cross-border value chains across the union members. Also, the Botswana, Lesotho, Namibia, and eSwatini peripheries could improve their infrastructure and productive capacity if their objective is to create an export base in some of the products currently supplied by South Africa.

scholarly journals Analysis of Bratislava and Žilina as urban areas in Western Slovakia in the context of associations among employment and industries

2017 ◽  
Vol 8 (4) ◽  
pp. 537-552 ◽  
Author(s):  
Gabriela Koľveková ◽  
Daniela Palaščáková
Keyword(s):  
Urban Areas ◽  
Slovak Republic ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Location Quotient ◽  
Border Regions ◽  
Cross Border ◽  
The Cross ◽  
The City

Research background: This paper observes especially the position of cities, urban areas in the context of global value chains — GVCs. Global value chains reflect specialization and labour division of companies, mostly multinational enterprises – MNEs. MNEs can be considered flagships of some industries. Such flagships influence suppliers and purchasers. MNEs are a part of networks or have got access to such networks that combine dispersion of the value chain, the boundaries of the firm and across national borders. Purpose of the article: The impetus for this work was to look at the position of Slovak cities (Bratislava, Žilina) in order to look for sectors that can help to develop the city and its adjacent regions, particularly cross-border regions. The paper discussed how the attribute of the cross-border regions gives the cities more advantageous position in GVCs. Methodology: Applying the method of location quotient allowed to shed a light on the GVCs, which cities participate in. Some cities were in a position to take advantage of participation in GVCs. Findings & Value added: Examined cities are located in the western part of the Slovak Republic. Discussion about the attribute of the cross-border regions can stimulate new ideas for finding causalities in city sprawl or in specialization patterns in the industrial structure of the city. Discussion further fosters the comparison of two cities strengths and weaknesses of each of them that were summarized in terms of employment and industrial exploitation of GVCs. This is the first finding and value added of the paper. The second one is that the method of location quotient is simple but provides clear evidence of the regional development or decline in particular industries and at the time of observation.

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.

Methodological approaches to global value chains analysis

2019 ◽  
pp. 14-18
Author(s):  
Anna Maksymenko
Keyword(s):  
Value Chain ◽  
Full Range ◽  
Value Added ◽  
Governance Structure ◽  
Global Value Chains ◽  
Business Environment ◽  
Research Topic ◽  
Value Chains ◽  
Productive Capacity ◽  
Methodological Approaches

The article is devoted to overview of methodological approaches to the analysis of the global value chains. Value chain is a full range of activities which is done by firm or employees in order to bring a product from its conception to its end use. This also includes activities such as design, production, marketing, distribution and support to the final consumer. Global value chains (GVC) involve different type of firm from different countries in such activities. The paper emphasizes that this research topic is interdisciplinary. Topics in GVC literature include variety of aspects: impact of globalization on employment, horizontal and vertical links between enterprises in the chain, governance structure of organizing international production networks, supply and income distribution, spread of innovation and technology, firms’ upgrading etc. Generally, A. Morrison, C. Pietrobelli and R. Rabellotti have identified two different “schools” or approaches within the broad GVC literature: the internationalist approach and the industrialist approach. Typology of global value chains is quite developed topic. Such types as market type, modular type, relational type, captive type, hierarchy type of governance have been distinguished and described by foreign researches. Elements of modernization processes of the value chain have been highlighted. Approaches to upgrading of value added production can be considered as upgrading of products (and packaging), upgrading of processes, functional upgrading, inter-sectoral upgrading. Also concept of upgrading can relate to upgrading of value chain-network structure and upgrading of governance structures. The topic of barriers for integration in global value chains for developing countries is crucial. There are several factors affecting developing country competitiveness in GVCs: productive capacity, infrastructure and service, business environment, trade and investment policy, industry institutionalization. The main conclusions emerging from analytical overview presented in this article are that various approaches to GVCs analysis exist and that the choice of particular approach should be based on specific research topic which is investigated as well as data sources (e.g. firms’ business record, input-output tables, interviews with enterprises, business association, government officers etc).

scholarly journals Region Of Southern Africa: International Trade And Global Value Chains

2014 ◽  
Vol 14 (2) ◽  
pp. 239-258
Author(s):  
Ewa Cieślik
Keyword(s):  
South Africa ◽  
International Trade ◽  
Production Process ◽  
Southern Africa ◽  
Global Value Chains ◽  
Value Chains ◽  
Customs Union ◽  
Conventional Methods ◽  
Structure Of Trade ◽  
Comprehensive Study

Abstract Integration of Southern Africa has resulted in changes in trade structures and production process across borders. The aim of this article is to present transformations taking place in the structure of trade exchange of the Southern African states (Botswana, Lesotho, Namibia, Swaziland, and South Africa) that are members of the Southern African Customs Union (SACU), and the position of South Africa in global value chains. South Africa seems to be the group of the most advanced countries in analyzed region. The analysis takes advantage of both the conventional methods of comprehensive study on international trade and the modern indicators and measures examining similarity, concentration or the position of South Africa in global value chains in general and sectoral terms.

scholarly journals Developmental Regionalism and Regional Value Chains: Pitfalls to South Africa's Vision for the Tripartite Free Trade Area

2018 ◽  
Vol 53 (3) ◽  
pp. 115-129 ◽  
Author(s):  
Sören Scholvin
Keyword(s):  
South Africa ◽  
South African ◽  
Free Trade ◽  
Regional Integration ◽  
Free Trade Area ◽  
Value Chains ◽  
Value Addition ◽  
The South ◽  
Industrial Policies ◽  
Trade Area

Regional integration via the Tripartite Free Trade Area (TFTA) received a significant boost when the South African parliament signed the corresponding agreement in October 2018. This article uncovers the convictions and objectives that drive South Africa's commitment to the TFTA. It reveals that South Africa sees the TFTA as a means of “developmental regionalism,” which is expected to facilitate region-wide industrialisation based on value addition in regional value chains (RVCs). For this purpose, South Africa seeks to coordinate industrial policies within the TFTA and rehabilitate infrastructure jointly with the regional states. In addition to explaining the logic behind these goals, and analysing how far they have already been achieved, the article also highlights important challenges to South Africa's vision for the TFTA. It calls the prospects of developmental regionalism into question, being particularly sceptical about the way in which RVCs are conceived.

scholarly journals Intra-Africa agricultural trade: A South African perspective

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Y. Daya ◽  
T. Ranoto ◽  
M. A. Letsoalo
Keyword(s):  
South Africa ◽  
South African ◽  
Regional Integration ◽  
Value Added ◽  
Agricultural Trade ◽  
Future Research ◽  
African Countries ◽  
Trade Patterns ◽  
Diverse Range ◽  
African Perspective

Purpose: The aim of this paper is to assess and provide an overview of the magnitude of current agricultural trade patterns between South Africa and the five leading regional economic communities (REC's) in Africa. This paper also seeks to examine some of the constraints limiting greater intra-African agricultural trade. This is done in order to better understand the role South Africa currently plays and could potentially play in promoting intra-Africa trade. Design/Methodology/Approach: Trade flows between South Africa and the leading REC's are outlined and explained. Trade data and tariff data is sourced from available databases. Non-tariff barriers and other impediments to greater intra-African trade are examined with reference to available literature and discussions the authors have had with trade experts and policy makers.Findings: South Africa is the most active country in intra-Africa agricultural trade. However, it is a relationship defined predominantly on exports to Africa with a low level of imports. South Africa exports a diverse range of value added products whilst imports remain concentrated in commodities. Significant imbalances in agricultural trade between South Africa and the respective REC's continue to persist. Regional trade arrangements have fostered greater trade but significant obstacles to greater trade remain.Implications: African countries that do not invest in infrastructure and create a trade-enabling environment and diversify their production, limit their potential to the supply of one or two commodities thereby perpetuating the trend of huge trade imbalances in favour of South Africa.Originality/Value: This work provides a platform for assessing trade relationships and examining impediments to greater trade. It is also relevant in guiding future research on priority markets in Africa as export destinations and import suppliers in light of increasing regional integration initiatives and governments commitment to African development.

scholarly journals Metals, Machinery, and Mining Equipment Industries in South Africa

2021 ◽  
pp. 53-77
Author(s):  
Antonio Andreoni ◽  
Lauralyn Kaziboni ◽  
Simon Roberts
Keyword(s):  
South Africa ◽  
Industrial Policy ◽  
Value Chain ◽  
Policy Design ◽  
Value Added ◽  
Poor Performance ◽  
Value Chains ◽  
Central Position ◽  
Mining Equipment ◽  
Middle Income

The metals, machinery, and mining equipment industries have been at the heart of South Africa’s industrial ecosystem. Their central position is associated with the long-term importance of mining, with which there are extensive demand- and supply-side linkages. This chapter reviews key turning points in the development and restructuring of these value chains in post-apartheid South Africa, from 1994 to 2019. The overall record is of a basic steel industry that performed better in terms of value added relative to the more diversified downstream industries, despite government industrial policy targeting more labour-intensive downstream industries. The downstream machinery and equipment industry struggled to compete with imports in the 2000s and 2010s and only partially engaged with digitalization. In explaining these developments the grand bargains struck by the state with the main company producing basic steel and the use of procurement as a demand-side industrial policy are critically examined. The chapter also provides micro-level evidence of the evolving relationships between mining houses; engineering, procurement, and construction management services companies; and input suppliers along the value chain. Overall, it is argued that the relatively poor performance of this industry grouping in South Africa has been due to power asymmetries along the value chains, upstream concentration, high levels of fragmentation in the domestic ecosystem, the lack of key institutional ingredients, and poor policy design. Lessons for resource-endowed middle-income countries are discussed, and policy challenges for upgrading and diversification are presented.

scholarly journals Capturing the Digital Economy—A Proposed Measurement Framework and Its Applications: A Special Supplement to Key Indicators for Asia and the Pacific 2021

2021 ◽  
Keyword(s):  
Industry 4.0 ◽  
Analytical Framework ◽  
Digital Economy ◽  
Value Chains ◽  
The Core ◽  
Measurement Framework ◽  
The Pacific ◽  
Special Supplement ◽  
Definition Of ◽  
Key Indicators

This publication sets out a framework for measuring the importance of the digital economy in national and global production processes. Amid the growing interest in the digitalization of socioeconomic activities, there is a lack of consensus on an established framework to estimate the digital economy. This report proposes a definition of the core digital economy and an input-output analytical framework to measure it. Applying this framework to selected economies and years, it finds that the digital economy and digitally dependent industries contribute a significant portion of gross domestic product. It examines key digital economy phenomena and trends in relation to sectoral links, temporal price changes, jobs, global value chains, the COVID-19 pandemic, and Industry 4.0.

scholarly journals The fragmented nature of the titanium metal value chain

2020 ◽  
Vol 120 (11) ◽  
Author(s):  
R.N. Roux ◽  
E. Van der Lingen ◽  
A.P. Botha ◽  
A.E. Botes
Keyword(s):  
South Africa ◽  
Value Chain ◽  
Value Added ◽  
Production Costs ◽  
Value Chains ◽  
Titanium Metal ◽  
Technology Markets ◽  
The Usa ◽  
Titanium Industry ◽  
Titanium Processing

SYNOPSIS This study investigates the fragmented nature of the global and local titanium metal value chains. South Africa has the fourth most abundant titanium reserves in the world. However, South Africa mainly exports titanium ore and imports value-added titanium products, which impacts the potential to derive more economic benefit from this resource. For South Africa to benefit from its titanium reserves, an understanding of the current fragmented nature of the global titanium value chain would assist in entering the global titanium industry. Information on the global and South African titanium value chains was collected by means of a desktop study. It was found that the leading countries operating within both the upstream and the downstream titanium industry are the USA, China, Japan, Russia, and Kazakhstan. The key drivers that caused fragmentation were identified as technology, markets, production costs, and the availability of titanium mineral reserves. An important outcome of this study is the identification of the local need for a technological foundation in support of downstream titanium processing to market-competitive titanium mill and powder products. Keywords: fragmentation, titanium, titanium value chain.

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