scholarly journals The intensification of foreign trade in post-socialist countries and their role in global value chains

2016 ◽  
Vol 66 (3) ◽  
pp. 465-487 ◽  
Author(s):  
Ewa Cieślik ◽  
Jadwiga Biegańska ◽  
Stefania Środa-Murawska
Keyword(s):  
Foreign Trade ◽  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Special Focus ◽  
Global Value Chain ◽  
Western European ◽  
Pass Through ◽  
Complex Methods ◽  
The Eu

This article presents the transformation of foreign trade in 10 post-socialist countries, current members of the EU. Special focus is given to the more significant role these countries began to play in global value chains (GVCs) as a result of liberalisation processes and integration within the EU. In addition, the article evaluates their place in global vertical specialisation. To locate each country on a global value chain and to compare them with selected countries, more complex methods of measuring the level of participation of European post-socialist countries in GVCs were employed. These methods allow the position of a country downstream or upstream in GVCs to be established. We concluded that (a) post-socialist countries differ in the levels of their participation in GVCs. Countries that have stronger links with Western European countries, especially with Germany, are more integrated; (b) a large share of post-socialist countries’ exports pass through Western European GVCs; (c) most exporters in Central and Eastern Europe are positioned in downstream segments of production rather than upstream markets.

scholarly journals Environmental Upgrading and Suppliers’ Agency in the Leather Global Value Chain

2019 ◽  
Vol 11 (23) ◽  
pp. 6530 ◽  
Author(s):  
De Marchi ◽  
Di Maria
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Limited Attention ◽  
Special Focus ◽  
Global Value Chain ◽  
Sustainability Strategies

The paper explores the role of suppliers in the process of environmental upgrading (EnvU) within global value chains (GVCs). Theoretical contributions to EnvU have highlighted, in particular, the role of global buyers in supporting the EnvU of products and processes, while limited attention has been given to suppliers as proactive actors within GVCs. This paper approaches EnvU through the lens of innovation and focuses on the agency of suppliers. Through the analysis of innovations developed within the leather GVC, with a special focus on the Arzignano cluster (Italy), the analysis shows how suppliers can autonomously develop sustainability strategies to maintain their competitiveness and achieve higher value in the GVC. However, results stress the limits of green strategies as buyers and suppliers do not share the same vision of how to foster sustainability.

A Portrait of Global Value Chain Linkages of Indian Manufacturing

2021 ◽  
Vol 3 (2) ◽  
pp. 235-250
Author(s):  
Ketan Reddy ◽  
Subash Sasidharan
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Value Addition ◽  
Jel Codes ◽  
Country Level ◽  
Forward Integration ◽  
Shed Light

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

scholarly journals The financialisation–offshoring nexus and the capital accumulation of US non-financial firms

2019 ◽  
Vol 43 (5) ◽  
pp. 1183-1218 ◽  
Author(s):  
Tristan Auvray ◽  
Joel Rabinovich
Keyword(s):  
Financial Markets ◽  
Value Chain ◽  
Capital Accumulation ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Financial Assets ◽  
Financial Firms ◽  
Productive Activities ◽  
Panel Regressions

Abstract The financialisation of non-financial corporations has drawn the attention of many scholars who have identified two main channels through which financialisation occurs: a higher proportion of financial assets compared to non-financial ones and a higher amount of resources diverted to financial markets. A consequence of this process is a decrease in investment. Parallel to financialisation, many non-financial corporations have also engaged in an internationalisation of their productive activities, organising them under global value chains. Though offshoring may also explain the decrease in the level of investment of non-financial firms, the intersections between the literature on financialisation and the literature on global value chain remain surprisingly underdeveloped. This paper contributes to fill this gap using panel regressions for US non-financial corporations between 1995 and 2011. We find evidence that both offshoring and financialisation are determinants to the decrease in investment and that financialisation occurs mainly among firms belonging to sectors prone to offshoring.

scholarly journals Global Value Chain Governance in the MNE: A Dynamic Hierarchy Perspective

2022 ◽  
pp. 000812562110685
Author(s):  
Paul Ryan ◽  
Giulio Buciuni ◽  
Majella Giblin ◽  
Ulf Andersson
Keyword(s):  
Value Chain ◽  
Multinational Enterprise ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Global Efficiency ◽  
Supply Line ◽  
Severe Shock ◽  
Crisis Conditions ◽  
Managerial Response

The pandemic crisis caused a severe shock to global value chains and led to supply shortages for complex medical goods such as respiratory ventilators. What followed were calls to reshore production for security, and the loss of efficiencies from foreign global value chain (GVC) operations for the multinational enterprise. This article merges internalization and GVC theory to demonstrate a dynamic hierarchy managerial response to these crisis conditions. An optimally configured GVC under hierarchy governance can resiliently eliminate global supply line ruptures yet maintain the benefits of global efficiency.

scholarly journals Exercising associational and networked power through the use of digital technology by workers in global value chains

2020 ◽  
pp. 102452942090328
Author(s):  
Nicole Helmerich ◽  
Gale Raj-Reichert ◽  
Sabrina Zajak
Keyword(s):  
Value Chain ◽  
Information Exchange ◽  
Production Management ◽  
Digital Technologies ◽  
Global Value Chains ◽  
Digital Tools ◽  
Value Chains ◽  
Global Value Chain ◽  
Power Resources ◽  
Footwear Industry

While there are heated debates about how digitalization affects production, management and consumption in the context of global value chains, less attention is paid to how workers use digital technologies to organize and formulate demands and hence exercise power. This paper explores how workers in supplier factories in global value chains use different digital tools to exercise and enhance their power resources to improve working conditions. Combining the global value chain framework and concepts from labour sociology on worker power, the paper uses examples from the garment industry in Honduras and the footwear industry in China to show how workers used old and new digital tools to create and enhance associational and networked powers. Digital tools were used by workers and their allies in the global value chain to lower costs of communication, increase information exchange and participate in transnational campaigns during labour struggles vis-à-vis firms and governments in structurally and politically repressive environments. The paper contributes to our understanding of how workers use of digital technologies to exercise and combine different resources of power in online and offline actions in global value chains, as well as how they are confronted by new dimensions of constrains which include digital surveillance and control by the state.

A case on Global Value (Supermarket) Chains and Small Producers: Governance, Participation, and Strategies

2005 ◽  
Vol 1 (2) ◽  
pp. 104-128
Author(s):  
Sukhpal Singh
Keyword(s):  
Trade Liberalization ◽  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Special Focus ◽  
Governance Mechanisms ◽  
Specific Focus ◽  
Small Producers ◽  
Gain Access

Whether or not local producers can gain access to global value chains and at which point is likely to be an important factor in determining whether they will benefit from trade liberalization. Understanding how these chains/networks are organized, controlled and governed is key to understanding how gains from them are shared across the chain participants. This paper analyzes the functioning of these chains with special focus on the implications for small producers in Asia. Besides defining and discussing the various aspects of the value chain framework and its utility for analysis, it also examines the context in which governance of these chains has acquired importance. It profiles the governance mechanisms and the issues involved, with specific focus on chains originating in Asia. The paper concludes by outlining some of the ways through which the participation of the small producers in these chains can be facilitated.

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.

scholarly journals The ‘factory manager dilemma’: Purchasing practices and environmental upgrading in apparel global value chains

2019 ◽  
Vol 52 (4) ◽  
pp. 766-789 ◽  
Author(s):  
Mahwish J Khan ◽  
Stefano Ponte ◽  
Peter Lund-Thomsen
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Global South ◽  
Value Chains ◽  
Global Value Chain ◽  
Social Upgrading

Economic and environmental upgrading in global value chains are intertwined processes. The existing global value chain literature has so far articulated the relationships between economic and social upgrading but has only recently started to explore the challenges of environmental upgrading from the perspective of suppliers in the Global South. In this article, we examine the ‘factory manager dilemma’ as a way of conceptualising the purchasing practices and environmental upgrading requirements faced by suppliers in their dealings with lead firms in global value chains. Specifically, we analyse the environmental upgrading challenges experienced by Pakistani apparel firms. We conclude that Pakistani apparel suppliers are required both to absorb the consequences of global buyers’ unsustainable purchasing practices and to reduce their own profitability – all in the name of sustainability.

scholarly journals Up or Down the Value Chain? A Comparative Analysis of the GVC Position of the Economies of the New EU Member States

2017 ◽  
Vol 1 (48) ◽  
pp. 19-36 ◽  
Author(s):  
Jan Hagemejer ◽  
Mahdi Ghodsi
Keyword(s):  
Value Chain ◽  
Economic Transition ◽  
Global Value Chains ◽  
Value Chains ◽  
Eastern European ◽  
The European Union ◽  
Member States ◽  
Eu Member States ◽  
Eastern European Countries ◽  
The Eu

Abstract The pattern of trade of the Central and Eastern European countries has been changing since the beginning of the economic transition in the early 1990s. By the end of the century this process was additionally strengthened by their integration with the European Union and overlapped with the development of global value chains (GVC) spanning across Europe with which the new member states (NMS) have become increasingly integrated. In this paper, we shed light on these changes by analysing the position of the NMS within the global value chains. We employ the upstreamness measure proposed by Antràs et al. (2012) and use the World Input–Output Database. Although we observe a global increasing trend in the upstreamness of all countries, we find that the NMS have in many cases gone against this trend while converging in their production structure within their group and with the EU-15. This convergence is mostly observed in Czech Republic, Hungary, Poland and Slovakia where the level of upstreamness in the most important exporting sectors was close to that of Germany by the end of the analysed period 1995−2011.

scholarly journals Innovation in Hungary - The Impact of EU Accession and Integration into Global Value Chains

2014 ◽  
Vol 42 (1) ◽  
pp. 40-59 ◽  
Author(s):  
Andrea Szalavetz
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Policy Transfer ◽  
Value Chains ◽  
Minor Importance ◽  
Manufacturing Companies ◽  
Eu Accession ◽  
Eu Membership ◽  
The Impact ◽  
The Eu

Abstract This paper argues that EU accession has brought about minimal changes in the patterns of innovation in Hungary. The reason why is not that the ‘EU factor’ is of minor importance; rather, it is Hungary's inability to use EU resources effectively, so as to fully benefit from EU membership. The Hungarian story also demonstrates that the EU cannot block member states from reversing reform or abusing the opportunities EU membership offers to them. We contend that globalization (global value chain integration) has more effectively contributed to Hungary's knowledge-based upgrading than Europeanization (in the sense of policy transfer; access to EU Structural & Cohesion Funds, and integration in the European Research Area). This argument is substantiated with a case study on innovation strategy design and implementation, which illustrates the ambiguous impact of Europeanization, which is contrasted with our investigation of integration in global value chains, conducted through interviews of foreign-owned manufacturing companies about their R&D-based upgrading experience.

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