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.

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.

Do International Fragmentation of Production and Global Value Chains Participation Affect the Long-run Economic Growth?

2022 ◽  
pp. 001573252110504
Author(s):  
Camila do Carmo Hermida ◽  
Anderson Moreira Aristides dos Santos ◽  
Mauricio Vaz Lobo Bittencourt
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
High Tech ◽  
Distributed Lag ◽  
Long Run ◽  
Position Index ◽  
Fragmentation Of Production ◽  
Participation Index

This article aims to investigate whether the international fragmentation of production and the global value chains (hereafter GVCs) participation affects the economic growth for a set of 40 advanced and emerging economies. It considers four aspects related to the type of participation and position in GVCs captured by different value-added measures: (a) vertical specialisation index; (b) GVC participation index; (c) GVC position index in low-tech sectors; and (d) GVC position index in high-tech sectors. A panel autoregressive distributed lag (PARDL) model is pioneeringly employed to capture the long-term relationship between economic growth and our four measures for annual value-added data from 1995 to 2011, provided by the World Input–Output Tables (WIOT). The main long-run results indicate that (a) higher levels of international fragmentation of production and GVCs’ participation ensure higher GDP per capita growth rates; (b) the fragmentation and GVCs’ participation are more important to GDP growth than the gross exports as a percentage of GDP; (c) GVCs’ participation index, which considers both the ‘forward’ and ‘backward’ participation, is less important than the vertical specialisation, measured by the foreign intermediate imports; and (d the countries engaged in upstream positions in low-technology GVCs were positively and significantly benefitted in terms of growth. JEL Codes: F14, F43

GLOBAL DIGITAL DEVELOPMENT AND NEW GLOBAL CHALLENGES FOR UKRAINE

2017 ◽  
Author(s):  
Iryna Yanenkova ◽  
Keyword(s):  
Information And Communication Technologies ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
High Tech ◽  
Business Climate ◽  
Global Challenges ◽  
Economic Transformations ◽  
Digital Development ◽  
Smart Specialization

The article reflects the results of a study conducted as part of the research project "Providing the complementarity of digital and socio-economic transformations." The main directions of digital transformation influence at economic relationship and effectiveness of production are identified and generalized. The relationship between integration into global value chains with the concepts of smart specialization, cluster and ecosystem development is shown. It means that the basis of successful integration into global value chains is the developed innovative ecosystems of high-tech industries, on which developed sectoral and regional clusters can be based and in which, accordingly, there is a deeper smart specialization. Tendencies, peculiarities and drivers of the world digital development are considered. New global challenges of digital development and its impact on the economy and society in Ukraine are defined and analyzed. It is shown that over the last 20 years Ukraine has transformed from a newcomer in the field of information and communication technologies to a center for the creation and export of services. The state and possible prospects of development of Ukrainian Industry 4.0 in the context of post COVID-19 are analyzed. The main reason for the negative trends is the structural degradation of the economy due to the decline of the processing industry, which is a consequence of the crisis socio-economic and political phenomena in the country, lack of systemic state industrial policy and inadequate business climate. The main threats and new opportunities of socio-economic and digital transformations posed to the country by the coronavirus pandemic are summarized. The main emphasis is on Ukraine's ability to include value added in new chains or build on existing ones. Proposals have been developed for the authorities to provide the complementarity of digital and socio-economic transformations.

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.

scholarly journals Participation of Kazakhstan Pharmaceutical Companies in Global Value Chains Authors

2021 ◽  
Vol 17 (2) ◽  
pp. 473-485
Author(s):  
Elena D. Frolova ◽  
Zulparuza A. Abdurahkmanova ◽  
Alexander A. Ishukov
Keyword(s):  
Pharmaceutical Industry ◽  
Generic Drugs ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Pharmaceutical Companies ◽  
Enterprise Level ◽  
Micro Level ◽  
The Republic ◽  
National Economies

Growing interest of national economies in global value chains (GVCs) and the lack of micro-level research brought us to study the integration of countries in GVCs at the enterprise level (using the example of the pharmaceutical industry). We examine the situation in the Republic of Kazakhstan that is beginning to integrate into GVCs. Results of a questionnaire survey of the country’s pharmaceutical companies are considered along with public statistics. We developed a methodology to analyse the participation of a national entity in GVCs at the micro-level (including the enterprise participation in GVCs) and assess the performance of Kazakh pharmaceutical companies. The research is based on export and import data. A hypothesis on the participation of national pharmaceutical enterprises was partially confirmed: several surveyed companies participate in generic drugs GVCs at the production level, thus the value added is low. Features of pioneering entry into pharmaceutical global value chains for countries lacking such integration experience were demonstrated on a specific example. The obtained results can be used by countries starting the process of integration into pharmaceutical GVCs, as well as by Kazakhstan when developing the pharmaceutical industry.

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.

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