Global value chains and state support in the aircraft industry

2014 ◽  
Vol 16 (4) ◽  
pp. 615-639 ◽  
Author(s):  
Steven McGuire
Keyword(s):  
Value Chain ◽  
Value Chains ◽  
Aircraft Industry ◽  
Barriers To Entry ◽  
Commercial Aircraft ◽  
Government Interventions ◽  
Trade Dispute ◽  
Trade Friction ◽  
The World ◽  
National Champions

The commercial aircraft industry is no stranger to trade friction, which has brought bitter international disputes over industrial policy to the World Trade Organization (WTO). Yet despite the fact that several countries, notably China, Japan and Russia have stated their intentions to develop aircraft that can compete with other countries, these efforts have not led to a trade dispute. What explains this pattern? Drawing on sources such as the Global Trade Alert database, this paper argues that that the complexity of the aircraft industry generates considerable barriers to entry. Moreover, emerging aerospace states have not repeated earlier efforts of direct subsidy, but rather, they have sought to position themselves in the global aerospace value chain, with selective government interventions designed to help national champions accumulate the necessary technical experience though collaboration with incumbent firms. However, the very diversity of government supports may make protectionist measures more difficult to identify.

scholarly journals Competitive Conditions in Global Value Chain Networks: An Assessment Using Entropy and Network Analysis

Entropy ◽  
2020 ◽  
Vol 22 (10) ◽  
pp. 1068 ◽  
Author(s):  
Georgios Angelidis ◽  
Evangelos Ioannidis ◽  
Georgios Makris ◽  
Ioannis Antoniou ◽  
Nikos Varsakelis
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Degree Centrality ◽  
Sector Structure ◽  
Input Output ◽  
Weighted Degree ◽  
The World ◽  
Weighted Degree Centrality

We investigated competitive conditions in global value chains (GVCs) for a period of fifteen years (2000–2014), focusing on sector structure, countries’ dominance and diversification. For this purpose, we used data from the World Input–Output Database (WIOD) and examined GVCs as weighted directed networks, where countries are the nodes and value added flows are the edges. We compared the in-and out-weighted degree centralization of the sectoral GVC networks in order to detect the most centralized, on the import or export side, respectively (oligopsonies and oligopolies). Moreover, we examined the in- and out-weighted degree centrality and the in- and out-weight entropy in order to determine whether dominant countries are also diversified. The empirical results reveal that diversification (entropy) and dominance (degree) are not correlated. Dominant countries (rich) become more dominant (richer). Diversification is not conditioned by competitiveness.

scholarly journals The structural dilemma of value-chain upgrading: Hungarian suppliers' integration into the world economy

2021 ◽  
Keyword(s):  
Value Chain ◽  
Service Providers ◽  
World Market ◽  
Value Chains ◽  
Advanced Technologies ◽  
Domestic Capital ◽  
The World ◽  
World Economic ◽  
Considerable Impact

Abstract In the following paper, I examine the considerable impact of the recent world-economic shift that has determined the circumstances of Hungarian suppliers' value-chain integration. I argue that as a result of the specialized positions they occupied in the value-chain after the collapse of the Comecon market, Hungarian enterprises in export-oriented industries faced a dilemma—a trade-off between obtaining the most advanced technologies (and thus access to world-market niches) and retaining ownership in the hands of domestic capital. When company managers opted to protect ownership with the help of the state, they exposed themselves to greater risk of downgrading their position in the value chain. If they managed to get access to advanced technologies (and the requisite funding), they were more likely to lose control over their company's assets, either as a result of a hostile takeover or becoming part of the larger partner's merger-and-acquisition plans. This paper is a discussion of some of the particular characteristics of this dilemma, as well as a comparison with the experience of Hungarian service providers who implemented a different strategy. This paper is also a critical assessment of some of the chief characteristics of the world-economic evolution that has been underway since 2009, such as German automotive value chains' expansion in the CEE region and the growing role of Chinese capital in regional infrastructural projects.

scholarly journals Capitalist crisis in the “age of global value chains”

2021 ◽  
pp. 0308518X2110067
Author(s):  
Jennifer Bair ◽  
Mathew Mahutga ◽  
Marion Werner ◽  
Liam Campling
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Modernization Theory ◽  
World Development Report ◽  
Neoliberal Globalization ◽  
Academic Literature ◽  
The World ◽  
World Development

In this article, we analyze the strategies, surprises, and sidesteps in the World Bank’s 2020 World Development Report, Trading for Development in the Age of Global Value Chains. Strategically, the Report promotes an expansion of neoliberal globalization couched in the language of global value chains. Curiously detached from the broader academic literature on global value chains in international trade, it promotes a sequentialist vision of global value chain upgrading that evokes the stagism of classic modernization theory. The authors sidestep important issues, such as China's pivotal role in the landscape of global trade, and are largely silent on others, including climate change. Significantly and somewhat surprisingly, given the general endorsement of global value chain integration, the Report acknowledges negative distributional trends associated with the rise of global value chains, including the excessive benefits reaped by “superstar firms” and the now well-documented decline in labor's income share. These observations are not reflected in the document's policy section, however, where the World Development Report largely recapitulates familiar prescriptions, with the threat of nationalist populism and rising protectionism providing a new bottle for this old wine. Drawing on a range of literature including United Nations Conference on Trade and Development's 2018 Trade and Development Report, we highlight not only the limits of the Bank's adherence to an increasingly embattled orthodoxy, but also the necessary starting points for a more useful discussion of the merits, limits, and future of global value chains.

Boeing-Airbus Subsidy Dispute: A Sequel

2004 ◽  
Vol 4 (2) ◽  
pp. 1850024 ◽  
Author(s):  
Robert J Carbaugh ◽  
John Olienyk
Keyword(s):  
United States ◽  
World Trade Organization ◽  
World Trade ◽  
The United States ◽  
Aircraft Industry ◽  
Commercial Aircraft ◽  
Future Health ◽  
Government Subsidies ◽  
The World ◽  
Commercial Aircraft Industry

After intensifying in the 1980s and 1990s, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry again heated up in 2004. This time, however, the stakes were higher because both nations sued each other at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as both companies spar for dominance in the highly competitive industry of commercial aircraft. This paper provides a sequel to “Boeing-Airbus Subsidy Dispute: An Economic and Trade Perspective,” a paper written by these authors and published in the October-December 2001 issue of Global Economy Quarterly. The initial paper analyzed the trade frictions between Boeing and Airbus regarding governmental subsidies and its implications for the conduct and performance of the two companies in the commercial aircraft industry. This paper extends the analysis by discussing recent developments in the commercial aircraft industry, the subsidy dispute of Boeing and Airbus at the World Trade Organization, and the future health of the commercial jetliner industry.

Competition and power in global value chains

2020 ◽  
pp. 102452942097515
Author(s):  
Pamela Mondliwa ◽  
Simon Roberts ◽  
Stefano Ponte
Keyword(s):  
South Africa ◽  
Value Creation ◽  
Value Chain ◽  
Bargaining Power ◽  
Value Chains ◽  
Global Value Chain ◽  
Barriers To Entry ◽  
Government Regulations ◽  
Competition Rules ◽  
Competition Laws

This paper bridges the understanding of power in the global value chain literature and the analysis of market power and barriers to entry in competition economics. It draws on competition economics to provide a better understanding of the ways in which bargaining power between firms shapes patterns of value creation and capture along value chains. It also considers the influence which competition laws have on the conduct of large and powerful firms. Through the case studies of supermarkets and petrochemicals in South Africa, the paper shows how the dominant bargaining power of lead firms owes much to the historical impact of government regulations and industrial policy, including those enforced by competition authorities. We conclude by highlighting that choices regarding the type of competition rules to be adopted have important implications for the ability of supplier firms to build capabilities and to upgrade in value chains.

scholarly journals Five Connectivity Areas of the China's Belt and Road Initiative

2018 ◽  
pp. 45-58 ◽  
Author(s):  
I. Chubarov
Keyword(s):  
Value Chain ◽  
World Economy ◽  
Developed Countries ◽  
Necessary Condition ◽  
Economic Openness ◽  
Transportation Projects ◽  
The People ◽  
The World ◽  
Belt And Road ◽  
National Champions

The article strives to go beyond the common understanding of China's BRI strategy as a set of Eurasian logistics corridors and related investment and transportation projects. Scrutinizing the five integration areas (wu tong), namely foreign policy, infrastructure, trade & economic, financial and humanitarian, one can come to the conclusion that it is a set of activities to support the "going out" of the Chinese commercial firms to the leading positions in various sectors of the world economy. Climbing up the value chain by the "national champions" is a necessary condition for China's entrance to the center of the world economy. The arena of action is the periphery and semi-periphery (so called "countries along the belt and road"), where China is gradually pushing out corporations of developed countries.In addition, the strengthening of China's status in the eyes of the international community and the formation of the image of a great power hold independent importance for the people and leadership. Assessing BRI as the next natural stage of China's foreign economic openness policy at the new stage of globalization and at the same time as a self-valuable tool for restoring the country's prestige on the world stage allows more accurate evaluate Chinese intentions in joint projects.

The commercial transformation of world football and the North–South divide: A global value chain analysis

2017 ◽  
Vol 54 (4) ◽  
pp. 410-430 ◽  
Author(s):  
Benjamin D Brewer
Keyword(s):  
Value Chain ◽  
Value Chains ◽  
Governance Structures ◽  
Global Value Chain ◽  
Value Chain Analysis ◽  
The North ◽  
Chain Analysis ◽  
The World ◽  
Global North ◽  
Political Economic

This paper takes a world-systemic perspective on global football seen through the lens of the Global North–South political–economic divide that has long motivated development studies. After synthesizing an historical account of the commercial transformation of world football since the mid-1970s, the paper considers the organization and operation of the world football economy using the analytical construct of the “global value chains” perspective. The analysis identifies two distinct football governance structures that broadly correspond to the “producer-driven” and “buyer-driven” governance structures long identified by commodity/value chain scholars, and that imply different flows of resources across world football’s North–South divide. The paper concludes by considering implications of the value chain governance structures for both the value chains and sports studies literatures.

scholarly journals Management of New Risks in Economic and Food Security

2021 ◽  
Vol 941 (1) ◽  
pp. 012020
Author(s):  
V S Osipov ◽  
A G Zeldner
Keyword(s):  
Food Security ◽  
Income Inequality ◽  
Seed Production ◽  
Value Chain ◽  
Value Chains ◽  
The World ◽  
Period System ◽  
Social Upheaval ◽  
Non Destructive ◽  
Food Inflation

Abstract The article examines the consequences of the coronavirus in the form of a system of risks. The main goal of the study is assessment the risks of economic food security at post-COVID period. System, institutional and comparative analysis were used as methods of research. There are five types of risks in the research. We assessed monopolization in breeding, seed production and chemicalization, lockdown and value chain disruptions, increasing income inequality, food inflation, and climate changes. The introduction to the theory of nondestructive development and non-aggressive coexistence is described in the article. The authors propose a concept of non-destructive development, in which a special place is given to respect for nature, reducing aggressiveness between countries, reducing the monopolization of breeding and seed production, and reducing income inequality around the world. The monopolization of breeding and seed production is of particular concern, as it can lead to a decrease in food availability and a decrease in food security and independence. The gaps in the value chains due to the lockdown have already led to a decrease in the availability of food in individual countries. A further food crisis must not be allowed as it is fraught with social upheaval. The authors insist on the need to reduce aggression in the world, since a post-like revival of the economy is impossible in an unfavorable political situation in the world.

scholarly journals Global Value Chains of COVID-19 Materials: A Weighted Directed Network Analysis

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3202
Author(s):  
Georgios Angelidis ◽  
Charalambos Bratsas ◽  
Georgios Makris ◽  
Evangelos Ioannidis ◽  
Nikos C. Varsakelis ◽  
...  
Keyword(s):  
Value Chain ◽  
Trade Flow ◽  
Value Added ◽  
Value Chains ◽  
Directed Network ◽  
Protective Equipment ◽  
Global Value Chain ◽  
A Value ◽  
The World ◽  
The Usa

The COVID-19 pandemic caused a boom in demand for personal protective equipment, or so-called “COVID-19 goods”, around the world. We investigate three key sectoral global value chain networks, namely, “chemicals”, “rubber and plastics”, and “textiles”, involved in the production of these goods. First, we identify the countries that export a higher value added share than import, resulting in a “value added surplus”. Then, we assess their value added flow diversification using entropy. Finally, we analyze their egonets in order to identify their key affiliates. The relevant networks were constructed from the World Input-Output Database. The empirical results reveal that the USA had the highest surplus in “chemicals”, Japan in “rubber and plastics”, and China in “textiles”. Concerning value added flows, the USA was highly diversified in “chemicals”, Germany in “rubber and plastics”, and Italy in “textiles”. From the analysis of egonets, we found that the USA was the key supplier in all sectoral networks under consideration. Our work provides meaningful conclusions about trade outperformance due to the fact of surplus, trade flow robustness due to the fact of diversification, and trade partnerships due to the egonets analysis.

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