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.

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 Trade costs, global value chains and economic development

2018 ◽  
Author(s):  
Yuan Zi
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Value Chain ◽  
Wage Gap ◽  
Global Value Chains ◽  
Trade Costs ◽  
Value Chains ◽  
Trade Frictions ◽  
The Impact ◽  
North And South

Abstract This paper develops a model to study the impact of trade costs on developing countries’ industrialization when sequential production is networked in global value chains (GVCs). In a two-country setting, a decrease in trade costs of intermediates is associated with South joining and moving up the value chain and both North and South experiencing a welfare improvement. The wage gap between North and South first increases and then decreases. Extending the model to a multi-country setting, I show that reduced trade frictions lead to South countries joining GVCs due to wage differentials and low trade costs. This increases the wage in North but may decrease the wages of South countries that are already part of the network. Moreover, South countries that join tend to be regionally clustered. The model provides a first look at GVCs from the development angle, and raises policy questions regarding the governance of GVCs.

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 Opportunities for the integration of the Ukrainian industry into global value chains

2018 ◽  
pp. 65-74 ◽  
Author(s):  
Оksana Kushnirenko ◽  
Olga Zarudna
Keyword(s):  
Production Systems ◽  
Negative Impact ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Manufacturing Companies ◽  
Production Networks ◽  
Processing Industry ◽  
Pass Through ◽  
The Impact

Relevance of the research topic is due to the impact of globalization which had brought an increasing number of more and more products pass through global value-added chains to reach the end users. That  has led to new forms of transnational production,  that gives new opportunities for Ukrainian producers. Formulation of the problem. The utilizing the opportunities and mitigating the negative impact of the liberalization of foreign trade makes new requirements  for production oriented businesses in a more open and competitive international environment. The development of global production systems provides opportunities for participating in global value chains, that opens up new opportunities for the industry of Ukraine and requires further scientific researches. Analysis of recent research and publications. There are various dimensions to the development of global value chains of industry that need to be taken into account. The most important of these are P.Marsh, R.Kaplinski and Morris, K.Schwab, R.Rajk, D.Rodrik, E.Rajnert, S.Veber, P Labasta, G. Dzerffi, Geets VM, Vishnevsky AS, Deineko LV, Kizim NA, Kvasha TK, Lyashenko VI, Musina LA, Pyatnitsky VT, Sidenko V.R. and others. Selection of unexplored parts of the general problem. In the context of increasing influence of integration processes on the development of international trade and production, the problem of choosing the most effective ways of integration into global value chains for the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing remains insufficiently studied. Setting the task, the purpose of the study. The objective of the article is to analyze the features of the formation of value added chains and ways of integrating them into the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing. The purpose of the study is developing the proposals for possible constructive ways of promoting the integration of Ukrainian processing industry into global value-added chains. Method or methodology for conducting research. This paper used of general scientific: abstract-logical, induction and deduction, systemic approach; analysis, and synthesis and special scientific research methods: statistical comparisons, grouping, sampling; structure-functional analysis, expert judgments. Presentation of the main material (results of work).The existing approaches to the definition of the notion of value added chains are disclosed and their grouping is carried out on significant grounds; The features and modern trends in the development of global value chains in the processing industry are explored; The opportunities and the existing risks have been identified in the chain of value added for the developing countries; and substantiated practical recommendations for choosing the most effective ways of integration into global value chains for the processing industry of Ukraine as a reliable supplier of products with a higher degree of processing. The field of application of results. The results of this research can be applied in the process of formation and implementation of Ukraine's integration industrial policy. Conclusions according to the article. In the article authors was made in  assessment of the integration of Ukrainian manufacturing companies into global value chains. The adoption of effective tools and instruments for encouraging the entry of Ukraine's processing industry into global value chains provides for the creation of effective policies and institutions, aimed at eliminating restrictions in the the Ukrainian producers integration into international production networks. 

scholarly journals Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports

2021 ◽  
Author(s):  
Giovanni Cerulli ◽  
Silvia Nenci ◽  
Luca Salvatici ◽  
Antonio Zinilli
Keyword(s):  
Value Chain ◽  
Control Method ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Synthetic Control ◽  
Currency Unions ◽  
Trading Partners ◽  
The Impact

AbstractMany estimates of the effect of the common currency on trade have been made, although a clear answer has yet to be given. This work analyses the trade effect of the euro by providing a twofold contribution. First, one of the main stylised facts that has emerged from the recent literature is that trade flows in gross terms can differ substantially from those measured in value added terms. Accordingly, we focus on the structure of global value chains rather than conventional gross trade. To this aim, we provide an estimate of the value added trade flows that would have existed between Italy and its main trading partners if Italy had not joined the monetary union and show how, and to what extent, international production sharing has been affected. Second, we use a methodology that is different from traditional, parametric ones. Specifically, we apply the synthetic control method to construct appropriate counterfactuals and estimate the causal impact of the euro. Our empirical analysis provides a relevant case for considering value added in addition to gross trade since it shows that the euro facilitated the forward integration of Italian exports, whereas it slowed down backward integration. Overall, these results suggest that the euro had an impact on Italian global value chain participation by altering value added flows across member as well as non-member states, with great heterogeneity in the results across value added trade components and sectors.

scholarly journals Labour Standards in Global Value Chains: Disentangling Workers’ Voice, Vicarious Voice, Power Relations, and Regulation

2017 ◽  
Vol 71 (4) ◽  
pp. 741-767 ◽  
Author(s):  
Emmanuel Josserand ◽  
Sarah Kaine
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Chain Structure ◽  
Regulatory Mechanisms ◽  
Value Chains ◽  
Future Research ◽  
Ethical Consumerism ◽  
Regulatory Processes ◽  
Labour Standards ◽  
The Impact

Theoretical developments and case studies have started to explore the complexity and intricacies of new forms of labour regulation in Global Value Chains (GVCs). This paper builds on these to integrate what we know into a coherent framework that can guide practice and future research. We bring together existing knowledge on new forms of labour standards regulation—such as Private Social Standards (PSSs) and International Framework Agreements (IFAs)—into a framework that integrates and disentangles the contextual determinants, processes, regulatory mechanisms, and outcomes of such regulation in GVCs. Of special significance is the distinction between regulatory processes—vicarious voice, workers’ voice, coordinated international campaigns—, and regulatory mechanisms—IFAs and PSSs. Extant literature tends to deal with existing forms of regulation without much clarity on their respective roles. Our framework identifies two pathways from regulatory processes to regulatory mechanisms: the labour power and the customer power pathways. Our framework also establishes clear connections between concepts, underlining links of causality and moderating effects. We explore the impact of value chain structure, and specifically, the connections between workers’ and vicarious voice, on regulatory outcomes. With regard to the structure of supply chains, we examine the coupling of operations and the sensitivity of value chain participants to reputational risk and drive within value chains. We add the significant dimension of ‘internal drive’ to existing understandings of drive to capture the possible internal discrepancies leading managers in multinational companies (MNCs) to apply mixed incentives to their suppliers to comply with labour standards. Additionally, we introduce the concept of ‘vicarious voice’, which we define as a situation where workers’ voice is substituted by that of actors who, unlike local unions or activist unionism, do not have a close representative link with workers. Vicarious voice may be composed of ethical consumerism, social advocacy, and international union federations.

scholarly journals Employment Dynamics in Romania After the Crisis. A Global Value Chains Perspective

2015 ◽  
Vol 10 (3) ◽  
pp. 41-51
Author(s):  
Silvia Mărginean
Keyword(s):  
Financial Markets ◽  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Employment Dynamics ◽  
Chemical Products ◽  
The Right ◽  
The Impact ◽  
Equipment Transport

Abstract After the 2008-2009 crisis, the challenge of understanding the mechanisms and structure of the world economy has begun to generate different approaches of economic globalization. This article uses Global Value Chain framework to examine the impact of the crisis on sectorial employment for six selected industries from Romania (Basic Metals and Fabricated Metal, Electrical and Optical Equipment, Transport Equipment, Machinery, Textiles and Textile Products, Chemicals and Chemical Products). With more than 70% of Romanian exports, and almost 14% of the employees these were the main real transmission channels for the crisis, other than financial markets. The study found that dynamic of the employment in these sectors has a different pattern than the national one. Employment in the sectors which are parts of Global Value Chains was very sensitive to global crisis: the average number of employees dropped by 15% in 2009 (comparing to 10% - the percentage for the whole economy) but they didn’t follow the national recovery trend (in 2013 the total number of employees increased by more than 11% in Romania but the numbers stayed almost the same in the six selected industries). These findings suggest that Romania need to understand the specificity of these trends and to use the right policy tools in order to achieve economic growth and development through participation in Global Value Chains.

Turkish migration in Europe: EU accession and migration flows

2014 ◽  
Vol 11 (2) ◽  
pp. 245-257
Author(s):  
Wadim Strielkowski ◽  
Ondřej Glazar
Keyword(s):  
The Netherlands ◽  
Future Scenarios ◽  
The European Union ◽  
Foreseeable Future ◽  
Eu Accession ◽  
Eu Membership ◽  
Migration Flows ◽  
And Migration ◽  
The Impact ◽  
The Eu

This paper analyses the impact of Turkey's potential EU membership on emigration from Turkey to the European Union. We apply panel data estimators using the data on emigration from EU15 countries into Germany and the Netherlands in order to construct possible future scenarios of Turkish migration to the EU. Three scenarios of migration, pessimistic, realistic and optimistic (depending on the fears related to the expected impact of Turkish migration on the EU labour markets), are drawn and future migration from Turkey into Germany and the Netherlands during the next 25 years is discussed in detail. We conclude that Turkish EU accession, should it happen in the foreseeable future, will not have any serious consequences in terms of massive migration flows.

scholarly journals Facilitators and Constraints of Policy Learning for Administrative Capacity in the Western Balkans

2017 ◽  
Vol 10 (2) ◽  
pp. 73-92 ◽  
Author(s):  
Artan Karini
Keyword(s):  
Capacity Building ◽  
Policy Transfer ◽  
Policy Learning ◽  
Future Research ◽  
Western Balkans ◽  
Eu Accession ◽  
Administrative Capacity ◽  
The Impact ◽  
The Eu

Abstract Drawing on the policy-transfer literature, where processes such as Europeanization accentuate the role of policy networks as facilitators or constraints in the implementation of acquis, in addition to the familiar mechanism of “conditionality”, the principal objective of this article is to explore the challenges of policy learning toward administrative-capacity building and, more specifically, the role of what I refer to here as “donor-bureaucrat-contractor” networks in the Western Balkans. By employing a qualitative methodology consisting of forty semi-structured interviews and focus groups with policymakers, donor officers, civil-society experts and consultants in the region during the period of January 2011 to December 2016, a critical analysis of aid-supported policy learning via training as a conduit to administrative capacity-building reveals a series of context-specific dimensions, such as the informality of such networks, overreliance on local NGOs as “capacitybuilding” implementation partners and the ability of the context to affect donor behaviour - all ultimately contributing to the (non-) occurrence of policy transfer. Th e overarching conclusion this article draws is that potential answers to problems with aid-supported policy learning in the region may probably lie in the invisible workings of the aforementioned networks rather than solely in the official channels of communication between Brussels and regional governments. From a policymaking standpoint, this conclusion in itself may as well be construed as a recommendation to mobilize future research surrounding the impact of such networks on European Union (EU) accession processes in the region. Th is may encourage research organizations both in the EU and the region to (re) orient future endeavors towards this dimension of administrative capacity-building - a core requirement for EU accession - especially as the EU itself faces its own enlargement dilemmas following Brexit while the region faces threats of a potential revival of “old” ethnic conflicts, both affecting the progress of administrative reforms and prospects of EU accession.

International trade: Research of the reasons for the fall

2019 ◽  
pp. 79-91 ◽  
Author(s):  
V. S. Nazarov ◽  
S. S. Lazaryan ◽  
I. V. Nikonov ◽  
A. I. Votinov
Keyword(s):  
Growth Rate ◽  
International Trade ◽  
Exchange Rate ◽  
Global Economy ◽  
Structural Changes ◽  
Global Value Chains ◽  
Value Chains ◽  
Negative Contribution ◽  
Basic Commodity ◽  
The Impact

The article assesses the impact of various factors on the growth rate of international trade. Many experts interpreted the cross-border flows of goods decline against the backdrop of a growing global economy as an alarming sign that indicates a slowdown in the processes of globalization. To determine the reasons for the dynamics of international trade, the decompositions of its growth rate were carried out and allowed to single out the effect of the dollar exchange rate, the commodities prices and global value chains on the change in the volume of trade. As a result, it was discovered that the most part of the dynamics of international trade is due to fluctuations in the exchange rate of the dollar and prices for basic commodity groups. The negative contribution of trade within global value chains in 2014 was also revealed. During the investigated period (2000—2014), such a picture was observed only in the crisis periods, which may indicate the beginning of structural changes in the world trade.

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