Going Green

2012 ◽  
Vol 56 (1-2) ◽  
Author(s):  
Nicole Reps ◽  
Boris Braun

Going green - environmental upgrading and value chain coordination in the Indian automotive industry. Previous debates have linked environmental upgrading processes in global value chains above all to the influence of powerful lead firms from developed countries. In this paper, we argue that the Indian automobile sector, too, shows a growing tendency for more environmental protection. However, the decisive impetus is often not given by international lead firms.Applying the concept of global value chains, this paper aims to identify both the dominating coordination mechanisms in the Indian automobile chain, and the strategies of different actors for environmental upgrading. The empirical section draws on findings from 130 qualitative interviews with eight vehicle manufactures, 54 component suppliers and several industry experts held between 2009 and 2011. Our results indicate that Indian vehicle manufacturers are presently more pivotal to driving “green” supply chains than international players. Our findings suggest that especially the strong technical and organizational support provided by Indian lead firms is the crucial factor to push component suppliers to improve their environmental performance. On this account, the recent debate on greening of supply chains seems to be led too much from a western perspective. Rather, it appears that many environmental upgrading processes in automobile supply chains occur independently of western lead firms. In fact, they are mostly initiated and implemented by local lead firms.

2018 ◽  
Vol 1 (2) ◽  
pp. 168-184 ◽  
Author(s):  
Wineaster Anderson

Purpose The purpose of this paper is to examine how local agricultural communities are integrated into the tourism value chains and provide insights into how this can contribute to poverty reduction. Design/methodology/approach The study employed the value chain approach to gain an understanding of the linkages between tourism and agriculture. Interviews involving local suppliers of agricultural products and tourism businesses (n=195) were conducted in Lushoto, Tanzania. The livelihood portfolios (range of activities – farming, employment, tourism, etc.) were analyzed in terms of the resources (economic, natural, human, physical and social assets) available to individuals and households and how these are optimally used to achieve inclusive growth. Findings The findings show that the form of tourism business ownership and the presence of specific social networks between tourism businesses and local suppliers dictate the mode of buying and the strength of supply chains. Community-based tourism is dominant in the area, allowing tourists to interact with agrarian rural communities. However, the optimal local linkages have been hampered by the quantitative and qualitative mismatch between locally supplied products and the tourism sector’s requirements. The failure of many initiatives aimed at addressing the mismatch creates a need for empowering local communities to enable them to take the opportunities that tourism provides. Practical implications Least developed countries need to build on the lessons learned from the development of tourism in their local settings, and pursue strategies which bring hope, confidence and real benefits to the majority of the struggling population. This study gives an insight on how inter-sectoral linkages could be embraced among the strategies or means of reducing rampant poverty. Originality/value Linking local agricultural production to tourism has long been seen as a promising way to make tourism more economically inclusive. However, the use of value chain approach in studying the tourism-agriculture linkages for inclusive development, especially in the developing economies is not common. While employing Porter’s value chains analysis, this study provides insights into how local farmers can be incorporated in tourism food supply chains in an ethical and beneficial way.


2022 ◽  
Vol 14 (1) ◽  
pp. 478
Author(s):  
Eleonora Di Maria ◽  
Stefano Micelli ◽  
Luca Menesello ◽  
Selena Brocca

Studies on policies oriented to Global Value Chains (GVC) focus much attention on developing countries and upgrading opportunities. Recent trends related to digitalization, market requests, and new consideration for value linked to manufacturing challenges GVC-oriented policies in developed countries. Such policies may refer to the attractiveness of foreign investments or increase the value captured through upgrading. At the city level, explicit policies promoted by municipalities are oriented to attract and support manufacturing activities to increase employment, entrepreneurship, and urban specializations while leveraging the new technological scenario. However, despite their interests in policies for economic growth at the national and cluster levels, research on the Global Value Chain has paid limited attention to cities and their role as production contexts within value chains. Linking to research on urban manufacturing and based on an empirical study on six cities (Barcelona, Detroit, London, Milan, New York, and Paris), the paper advances the theoretical debate on urban-related policies in the GVC framework by proposing three different policy directions related to (a) enhancing value related to urban production; (b) sustaining new urban entrepreneurship (digital craftsmanship); and (c) shortening GVC (Urban Value Chains).


Author(s):  
Johan Swinnen ◽  
Rob Kuijpers

Understanding the development implications of agri-food standards and global value chains is crucial, as they are a fundamental component of developing countries’ growth potential and could increase rural incomes and reduce poverty, but at the same time they present serious challenges and could lead to further marginalization of the poor. This chapter reviews some of the implications of the spread of stringent standards associated with global value chains for developing countries and global poverty reduction. The chapter focuses on five aspects: the interaction between standards and value chain governance; the effects on agricultural productivity and smallholder welfare; farm-level and institutional spillovers; labor market and gender effects; and the interaction between liberalization policies and value chains.


Author(s):  
K. Muradov

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.


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.


2021 ◽  
Vol 3 (2) ◽  
pp. 235-250
Author(s):  
Ketan Reddy ◽  
Subash Sasidharan

This article provides an overview of India’s participation in global value chains (GVCs). Using multiple databases at the aggregate and industry levels, this article documents the trends in GVC participation of India during the last three decades. Authors further differentiate between India’s backward and forward integration at the country level before evaluating the industry-specific dynamics of GVCs in India. In this study, authors also shed light upon the rising servicification of Indian manufacturing, and highlight the importance of services’ value addition in promoting GVC integration of India. JEL Codes: F1, F15, D57


2022 ◽  
pp. 095968012110537
Author(s):  
Sabina Szymczak ◽  
Aleksandra Parteka ◽  
Joanna Wolszczak-Derlacz

This paper examines the relationship between the relative position of industries in Global Value Chains (GVC) and wages in 10 Central and Eastern European countries. We combine GVC measures of global import intensity of production, upstreamness and the length of the value chain with micro-data on workers. We find that the wages of Central and Eastern European countries workers are higher when their industry is at the beginning of the chain or at the end than in the middle. Secondly, wage changes depend on the interplay between upstreamness and GVC intensity. In sectors close to final demand, greater production fragmentation is associated with lower wages.


2021 ◽  
Vol 24 (1) ◽  
pp. 214-236
Author(s):  
Christina Teipen ◽  
Fabian Mehl

Abstract The article compares social upgrading trends in four global value chains (apparel, automobiles, electronics and it services) and six developing and emerging economies (Bangladesh, Brazil, China, India, South Africa and Vietnam). It applies a framework, which combines analyses of industry-specific governance modes with recent theoretical approaches from the field of industrial relations. The empirical results show that prospects for social upgrading within similar segments of a particular value chain considerably depend on the national context. The article thus highlights the importance of integrating the role of national institutions into global value chain analysis in order to better explain variegated upgrading dynamics across different countries and industries.


2011 ◽  
Vol 33 (1) ◽  
Author(s):  
Sonja Dänzer

AbstractAlthough many people seem to share the intuition that multinational companies (MNEs) carry a responsibility for the working conditions in their supply chains, the justification offered for this assumption is usually rather unclear. This article explores a promising strategy for grounding the relevant intuition and for rendering its content more precise. It applies the criteria of David Miller's connection theory of remedial responsibility to different forms of supply chain governance as characterized by the Global Value Chains (GVC) framework. The analysis suggests that the criteria for identifying MNEs as remedially responsible for bad working conditions in their direct suppliers are fulfilled in many cases, even though differentiations are required with regard to the different supply chain governance structures. MNEs thus have a duty to make sure currently bad working conditions in their suppliers are changed for the better. Moreover, since production in supply chains for structural reasons continuously generates remedial responsibility of MNEs for bad working conditions in their suppliers, it puts the prospective responsibility on them to make sure that their suppliers offer acceptable working conditions. Further, it is suggested that the remedial responsibility of MNEs might require them to make financial compensation to victims of bad working conditions and in grave cases initiate or support programs to mitigate disastrous effects suffered by them.


Author(s):  
Robert Grosse ◽  
Klaus E. Meyer

This chapter raised two issues as a basis for structuring our thinking about international business in emerging markets. First, the question is raised regarding whether new theory is needed to study IB in emerging markets, or if existing theories can be extended to cover these geographic and institutional environments adequately. Second, the chapter presents the perspective of emerging markets fitting into global value chains, demonstrating how they fit into both supply chains and demand patterns. So, thinking about strategies for operating a foreign MNE in an emerging market and fitting an EM firm into an international network are both enhanced by looking at the firm(s) in the context of global value chains.


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