scholarly journals Factors affecting Vietnam’s trade balance in the context of the global value chain

2020 ◽  
Vol 4 (1) ◽  
pp. First
Author(s):  
Mai Thi Cam Tu
Keyword(s):  
Value Chain ◽  
Trade Balance ◽  
Trade Deficit ◽  
Added Value ◽  
Strong Impact ◽  
Global Value Chain ◽  
Factors Affecting ◽  
Real Gdp ◽  
Trading Partners ◽  
Effective Exchange

Trade balance is one of the important macro balances and has a strong impact on the balance of payments and the overall national economy. A country with a large trade deficit may experience lowered competitiveness of goods, export growth, and economic growth. This paper focuses on analyzing the core factors affecting Vietnam's trade balance in the context of global value chain accession. The author uses Bound-Testing method and ARDL model with data from 1990 to 2018 to identify factors affecting Vietnam's trade balance. The results show that, in the long term, Vietnam’s trade balance is affected by factors – ranked from the highest to the lowest – as follows: real GDP of trading partners; Vietnam’s real GDP; multilateral effective exchange rate; foreign added value in Vietnam's exported goods and FDI capital into Vietnam. From these important findings, the author proposes some implications for policymakers so as to improve the trade balance in the context of deeper participation in the global value chain.

scholarly journals A microeconometric analysis of factors affecting global value chain participation in Zimbabwe

2019 ◽  
Vol 7 (1) ◽  
pp. 1682746
Author(s):  
Stein Masunda ◽  
Norman Mupaso ◽  
Lanouar Charfeddine
Keyword(s):  
Value Chain ◽  
Global Value Chain ◽  
Factors Affecting

scholarly journals Different Approaches to Merchandise Trade Balance in Pakistan

2020 ◽  
Vol 12 (Number 2) ◽  
pp. 19-30
Author(s):  
Yousuf Aboya ◽  
Arsalan Hussain ◽  
Rohail Hassan ◽  
Hassan Mujtaba Nawaz Saleem ◽  
Aamir Hussain Siddiqui
Keyword(s):  
Exchange Rate ◽  
Trade Balance ◽  
Trade Deficit ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Merchandise Trade ◽  
Effective Exchange Rate

The current study empirically examines the three major approaches to trade balance for Pakistan by utilizing the yearly data from 1972 to 2016. Monetary, elasticity, and absorption approaches were tested by developing a model that incorporates all three approaches. The significant contribution of the study is that it uses only the merchandise trade deficit account, which includes trade of only physical goods. The study used time-series data; therefore, variables have been tested for the stationarity, and it is found that there is a combination of I (0) and I (1) variables, so ARDL bounds testing approach to co-integration has been employed to find the short run and long run associations among the variables. The bound test results discovered that there is a presence of stable long-term association among the merchandise trade deficit account, real broad money supply, real effective exchange rate, and real domestic absorption. The results further revealed that merchandise trade discrepancy is determined purely by the real effective exchange rate, which specifies that the exchange rate's devaluation increases the deficit in the long run whereas in the short-run increase in domestic absorption decreases the merchandise trade deficit.

scholarly journals EXCHANGE RATES ELASTICITY OF EXPORTS IN ASEAN: THE ROLE OF GLOBAL VALUE CHAINS

2021 ◽  
Vol 15 (1) ◽  
pp. 1-26
Author(s):  
Defy Oktaviani ◽  
Nagendra Shrestha
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Value Chain ◽  
The Philippines ◽  
Least Square ◽  
Real Effective Exchange Rate ◽  
Global Value Chain ◽  
Dummy Variable ◽  
Effective Exchange ◽  
Effective Exchange Rate

Abstrak Perdebatan tentang pelemahan hubungan antara nilai tukar dan ekspor telah meningkat dalam beberapa tahun terakhir, dan meningkatnya tren perdagangan terkait rantai nilai global (Global Value Chain/GVC) diasumsikan menjadi sumber melemahnya hubungan di antara keduanya. Dengan menggunakan data spesifik industri manufaktur, studi ini bertujuan untuk menyelidiki dampak GVC pada hubungan Nilai Tukar Efektif Riil (Real Effective Exchange Rate/REER) dan ekspor di empat negara ASEAN. Estimasi dilakukan menggunakan regresi Least Square Dummy Variable (LSDV) untuk periode sampel dari tahun 2009 hingga 2015. Hasil penelitian ini menunjukkan bahwa di Filipina, koefisien elastisitas nilai tukar ekspor dan partisipasi ke GVC tidak signifikan secara statistik. Sebaliknya di Indonesia dan Malaysia, secara rata-rata, integrasi ke GVC dengan berbagai pengukuran akan menurunkan elastisitas ekspor terhadap perubahan REER sekitar 70% sampai 89%. Lebih lanjut, estimasi terhadap data Thailand dan kelompok empat negara ASEAN menunjukkan bahwa partisipasi pada GVC mengubah nilai dan tanda elastisitas ekspor terhadap REER. Kata Kunci: Ekspor, Nilai Tukar, Rantai Nilai Global   Abstract The debate on the issue of the disconnected relationship between exchange rates and exports has risen in recent years, with the growing trend of Global Value Chain (GVC)-related trade assumed to be the source of the weakening link between them. By employing manufacturing industry-specific data, this study aims to investigate the impact of GVC on the nexus of the Real Effective Exchange Rate (REER) and exports in four ASEAN countries. The estimations are conducted using Least Square Dummy Variable (LSDV) regression for the sample period from 2009 to 2015. The findings of this study suggest that for the Philippines, the coefficients of exchange rate elasticity of export and participation to GVC are not statistically significant. Conversely, in the case of Indonesia and Malaysia, integration to GVC, with various measurements, will reduce the REER elasticity of exports by around 70% to 89% on average. Furthermore, the estimation data on Thailand and a group of four countries implies that the presence of GVC changes both the value and the sign of REER elasticity of exports. Keywords: Export, Exchange Rates, Global Value Chain JEL Classification: F14, F15, F31

Industry 4.0 Adoption in Manufacturing Industries Using Technology-Organization-Environment Framework

2021 ◽  
Vol 14 (1) ◽  
pp. 123-146
Author(s):  
Kanchan Pranay Patil
Keyword(s):  
Value Chain ◽  
Industry 4.0 ◽  
Industrial Revolution ◽  
Manufacturing Industries ◽  
It Services ◽  
Factors Affecting ◽  
Technology Competence ◽  
A Value ◽  
Governance Practices ◽  
Trading Partners

This paper investigated the determinant factors affecting the Industry 4.0 ecosystem needed for the digitization and automation of manufacturing industries. The 4th industrial revolution implements a value chain by interfacing internet of things devices and robotics, data processing in the cloud using artificial intelligence-based analytics. The study was conducted in Pune, India, a manufacturing and IT services hub. It sought to identify Industry 4.0 facilitators and inhibitors by framing empirical data collected from 320 manufacturing facilities and analyzed using PLS-SEM within a model based on technology-organization-environment (TOE) theory and motivation-threat-ability (MTA) theory. The results confirmed that technology competence, organization scope, consumer readiness, competitive pressure, trading partners' readiness, and governance practices are the facilitators, whereas organization resistance inhibits Industry 4.0 adoption intentions. The outcome of this study shall provide guidelines to manufacturing industries management as well as technology solution providers.

scholarly journals Policy on Planning and Promotion of Development of Supporting Industries for Vietnam

2013 ◽  
Vol 215 ◽  
pp. 47-60
Author(s):  
HOÀI NGUYỄN TRỌNG ◽  
ĐIỀN HUỲNH THANH
Keyword(s):  
Value Chain ◽  
Industrial Production ◽  
Manufacturing Sector ◽  
Development Plan ◽  
Added Value ◽  
Global Value Chain ◽  
Policy Recommendations ◽  
A Value ◽  
Planning Space ◽  
Legal Infrastructure

This research aims at analyzing aspects determining supporting industries (SIs) to serve the task of planning and developing such industries. Analyses show that Vietnamese SIs are very small and unable to help the manufacturing sector increase its added value and join the global value chain. The results find the following culprits: the plan and policies on SI development are not compatible with main trends of market specialization and global value chain; chain of domestic industrial production is till lacking; and inter-industry cooperation is poor. Policy recommendations, therefore, are as follows: establishing the exact list of SIs that help increase the added value of local industrial production and integrate into the global value chain; and planning space, time, track, and methods needed for carrying out such policies. Besides the development plan, the paper also offers suggestions about policies to promote SIs, such as legal infrastructure for SI development, design of a value chain for SIs, building of clusters of SIs, and mechanism for promoting SI development.

scholarly journals POSISI GVC INDONESIA DI WILAYAH ASEAN-KANADA

2020 ◽  
Vol 14 (2) ◽  
pp. 239-260
Author(s):  
Siti Mir'atul Khasanah ◽  
Dian Dwi Laksani ◽  
Nur Ulfa Mutiara Suwari
Keyword(s):  
Value Chain ◽  
Active Role ◽  
Jel Classification ◽  
Added Value ◽  
Global Value Chain ◽  
Intermediate Input ◽  
Input Output ◽  
Output Analysis ◽  
Asean Countries ◽  
Intermediate Value

Abstrak Rantai Nilai Global atau Global Value Chain (GVC) adalah alat yang berguna untuk melacak pola pergeseran dari produksi global. Kontribusi Indonesia dalam GVC di wilayah ASEAN-Kanada masih rendah, hal ini dapat dilihat dari nilai intermediate input yang lebih rendah dibandingkan dengan nilai final input. Penelitian ini bertujuan untuk menganalisis posisi GVC Indonesia di wilayah ASEAN-Kanada. Penelitian ini menggunakan analisis input-output dengan berdasar pada data World Input Output Databases (WIOD). Hasil studi ini menunjukkan bahwa dalam lingkup ASEAN, kontribusi Indonesia dalam GVC masih rendah, dapat dilihat dari nilai intermediate input yang lebih rendah dari nilai final input. Bila dibandingkan dengan negara-negara lain ASEAN (yang memiliki ekspor terbesar ke Kanada) yaitu Vietnam, Thailand, dan Malaysia, persentase ekspor barang intermediate Indonesia hanya sebesar 48,3%, lebih rendah dibandingkan negara-negara lainnya. Indonesia harus terus mengambil peran aktif di GVC. Di masa depan, Indonesia harus lebih aktif untuk dapat meningkatkan nilai tambah pada ekspor sebagai intermediate input, sehingga akan berdampak pada positif perekonomian Indonesia secara berkelanjutan. Kata Kunci: ASEAN-Kanada FTA, GVC, Nilai Tambah   Abstract Global Value Chain (GVC) is a useful tool to track shifting patterns of global production. Indonesia's contribution in GVC is still low, this can be seen from the lower intermediate input value compared to the final input value. The result of this study aims to analyze the position of Indonesia in the GVC in ASEAN-Canada region. The study used input-output analysis based on World Input Output Databases (WIOD). The study shows that within ASEAN, Indonesia’s contribution in GVC is low, it can be seen from the input intermediate value which is lower than the final input value. When compared with other ASEAN countries (which have the largest exports to Canada), as Vietnam, Thailand, and Malaysia, the percentage of Indonesia’s intermediate exports is only 48.3%, which is lower than those of these countries. Indonesia should continue to take active role on GVC. In the future, Indonesia should be proactive to be able to increase added value on export as intermediate input. To indeed it will positively impact Indonesia's economy in a sustainable manner. Keywords: ASEAN-Canada FTA, GVC, Added Value JEL Classification: A11, B17, B22, B41

The dilemma of domestic suppliers on the periphery of the automotive industry global value chain

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jesús F. Lampón ◽  
Marta Rodríguez De la Fuente ◽  
José Antonio Fraiz-Brea
Keyword(s):  
Automotive Industry ◽  
Value Chain ◽  
Added Value ◽  
Primary Data ◽  
Global Value Chain ◽  
Content Type ◽  
Industry Value Chain ◽  
Global Presence ◽  
The Impact

PurposeUnder the global value chain (GVC) approach, this paper aims to analyze how domestic suppliers on the periphery of the automotive industry are affected by their relationship with foreign multinationals.Design/methodology/approachA case study with primary data collected from foreign multinationals operating in the Mexican automotive industry was used to analyze their relationship with domestic suppliers.FindingsThe evolution of the suppliers has been characterized by improved quality and added value in their products and more asset-intensive, efficient processes. This evolution has been driven by improvement in production capabilities and investment in new equipment by domestic suppliers and facilitated by knowledge transfer from foreign multinationals. However, it has not involved the acquisition of innovation capabilities or the internationalization of production activities. This has limited their position on the first levels of the value chain and their global presence, which are essential aspects when climbing the industry value chain to lead some activities at a global level. At the same time, most of these suppliers have become strategic and have a greater dependence on foreign multinationals. This poses a dilemma for domestic firms, as the relationship with these multinationals becomes more intense and dependent and at the same time reduces the possibility of leading activities in the value chain.Originality/valueThe paper analyzes the impact on domestic suppliers of their relationships with foreign multinationals, integrating traditional product, process and functional upgrading and new elements, in particular, participation in the GVC and dependence on multinationals.

scholarly journals Oligopoly-driven development: The Word Bank’s Trading for Development in the Age of Global Value Chains in perspective

2021 ◽  
pp. 102452942199535
Author(s):  
Benjamin Selwyn ◽  
Dara Leyden
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Value Chains ◽  
Global Value Chain ◽  
Negative Consequences ◽  
Trade Theory ◽  
Trading Partners ◽  
Immanent Critique ◽  
Theoretical Foundations ◽  
World Development

The World Development Report 2020 (WDR2020) asserts that global value chains raise productivity and incomes, create better jobs and reduce poverty, and proposes state policies to facilitate global value chain-based development. We deploy an immanent critique of WDR2020 to interrogate its claims regarding wages and working conditions. Using the Report’s own evidence, we identify contradictions in its claims, which stem from its use of comparative advantage trade theory to reconceptualize global value chain relations. This perspective predicts mutual gains between trading partners, but its core assumptions are incompatible with the realities of global value chains, in which (mostly Northern) oligopolistic lead firms capture value from (mostly Southern) suppliers and workers. We show how WDR2020 conceals these contradictions by misconstruing, inverting and ignoring evidence (particularly of labour’s agency), whilst failing to recommend redistributive measures for the unequal outcomes that it recognizes. By redeploying heterodox conceptions of monopoly capital and by using a class-relational approach, we scrutinize WDR2020's overly positive portrayal of lead firms. We provide alternative theoretical foundations to better explain the evidence within the Report, which shows that global value chains concentrate wealth, exacerbate inequalities and constrain social upgrading – with negative consequences for supplier firm workers in developing countries.

scholarly journals The Impact of the COVID-19 Pandemic on the Global Value Chain of the Manufacturing Industry

2021 ◽  
Vol 13 (22) ◽  
pp. 12370
Author(s):  
Jiaze Sun ◽  
Huijuan Lee ◽  
Jun Yang
Keyword(s):  
Growth Rate ◽  
Value Chain ◽  
Manufacturing Industry ◽  
The United States ◽  
Output Growth ◽  
Added Value ◽  
High Tech ◽  
Global Value Chain ◽  
Epidemic Period ◽  
The Impact

This paper adopts the GDYN model to estimate the dynamic impact of the COVID-19 pandemic on global manufacturing industry and the value chain. Our simulation finds that (1) In the short run, the low-tech manufacturing industries will suffer greater shocks, with a decline of output growth in 2021 by 6.0%. The growth rate of the high-tech manufacturing industry showed an increasing trend of 3.7% in 2021. (2) In the post-epidemic period, the total manufacturing output will return to the baseline level, from which the growth rate of low-tech manufacturing will rebound, demonstrating a V-shaped development trajectory. (3) From the perspective of Global Value Chain (GVC), the participation in GVCs of manufacturers in countries along the Belt and Road, the European Union and the United States will weaken, while China’s manufacturing industry has witnessed an obvious improvement in export competitiveness. The import added value of China has decreased, which shows that its ability to meet domestic demand has been improving. This indicates that the COVID-19 pandemic is providing a crucial opportunity for China to upgrade its manufacturing value chain, which contributes to the accelerated construction of a new dual-cycle development pattern.

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