scholarly journals The Nexus among Competitively Valued Exchange Rates, Price Level, and Growth Performance in the Turkish Economy; New Insight from the Global Value Chains

2021 ◽  
Vol 14 (11) ◽  
pp. 528
Author(s):  
Umar Aliyu Shuabiu ◽  
Mohammed A. M. Usman ◽  
Behiye Çavuşoğlu
Keyword(s):  
Exchange Rates ◽  
Growth Performance ◽  
Price Level ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Annual Data ◽  
Turkish Economy ◽  
Study Results ◽  
Bound Test

Currently, global value chains (GVCs) are increasingly shaping the global economy, covering a growing share of international trade, GDP, and employment globally. Global trade is impacted by the emergence of GVCs in areas as diverse as commodities, electronics, and business service outsourcing, among other areas, since the countries involved in the GVCs hold some value(s) and benefit(s) from the exports of the finished product. In this study, the nexus among Competitively Valued Exchange Rates, Price level, and Growth Performance in the Turkish Economy; New insight from the GVCs is investigated using annual data from 1980 to 2020 within the framework of the ARDL bound test, Bayer and Hanck Cointegration (BHC) test, and ECM. The study results revealed that the relationship among real effective exchange rate, exports, and imports induced economic performance and external trade competitiveness particularly when directed at GVCs in both the short and long run. The study recommends that policies enhancing a 10% equilibrium convergence are required annually to competitively minimize the dependence on foreign value-added inputs by importing only world-class inputs for value addition and exports benefits in the competitive GVCs world. Furthermore, monetary policy, GVCs, and economic growth should be investigated.

Developing innovation capabilities for upgrading in global value chains: evidence from China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingqin Su ◽  
Huanhuan Ma ◽  
Shuai Zhang
Keyword(s):  
Process Model ◽  
Emerging Market ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Special Focus ◽  
Firm Level ◽  
Content Type ◽  
Innovation Activities ◽  
Study Results

PurposeIn the face of fierce international competition for those participating in global value chains (GVCs), upgrading has been a central concern of emerging market firms (EMFs) that are trying to occupy higher value-added positions. However, although the innovation capabilities (ICs) have been generally considered critical to upgrading in GVCs, few studies have examined how IC is built up and then applied to the EMF upgrading process over time. To this end, the purpose of this paper is to investigate why and how EMFs can upgrade in GVCs through the development of their IC.Design/methodology/approachThis paper adopts a multiple-case study of three supplier firms in China and their IC development processes, with a special focus on the nature of the firm-level upgrading in GVCs.FindingsThe results generate a process model of EMFs upgrading with respect to the development of IC. The model reveals how IC is built up through the firms' underlying systematic innovation activities, which enable firms to successfully upgrade within GVCs. In particular, the role played by contextual vulnerability in guiding firms to develop the appropriate IC, and the corresponding upgrading, is highlighted.Research limitations/implicationsThis study contributes to the micro-foundation in GVCs literature, especially the traditional static upgrading research of EMFs. The authors also contribute to existing IC development research. Meanwhile, the study focuses on the upgrading of three Chinese firms in the phone and LED industries. The generalizability to other emerging markets and industries may therefore be limited.Practical implicationsThe study results show that EMFs could initially develop endogenous IC that focuses on process innovation as a means to establish a foundation for further upgrading. In addition, firms need to improve their ability to accurately sense contextual changes. As such, it would be valuable to understand their positions and characteristics within GVCs.Originality/valueThis paper investigates a process model of upgrading in GVCs through IC development in EMFs. This study also adds a dynamic micro-foundation to existing, rather macro and static GVCs studies.

Assessment of the positions of the exporting countries of agri-food products on the world market according to their role in global value chains

2021 ◽  
pp. 8-14
Author(s):  
Elena Yu. Frolova ◽  
Keyword(s):  
Raw Materials ◽  
Action Plan ◽  
Value Added ◽  
Global Value Chains ◽  
World Market ◽  
Point Of View ◽  
Value Chains ◽  
Agricultural Exports ◽  
Export Policy ◽  
The World

The place in the rankings of agricultural exporting countries in world trade is estimated in terms of the volume of imports and exports of raw materials and food. However, to assess the efficiency of agricultural exports, it is important to analyze the value added of exported goods produced in the country. The position of the exporting country in global value chains is derived from the type of agricultural production, which in turn depends on the level of development of the national economy, the availability and breadth of use of modern high technologies. The article examines the concept of the development of world agriculture from the point of view of the formation of global value chains, set out in the report of the UN World Food Organization [1] in comparison with the political decisions of such countries as India and the People’s Republic of China in the development of agricultural and food exports. The paper analyzes the risks associated with the consolidation of developing countries as suppliers of agricultural raw materials, as well as the conditions and action plan that allow the country-exporter of agricultural raw materials to move to higher levels in the global value chains on the world market. This experience should be considered to make comprehensive and effective decisions on the formation of the export policy of agricultural products and food of the Russian Federation, considering the food security of the country.

Russia–ASEAN: Trade and Global Value Chains

2015 ◽  
pp. 25-39
Author(s):  
K. Muradov
Keyword(s):  
South Korea ◽  
Value Chain ◽  
Bilateral Trade ◽  
Value Added ◽  
Global Value Chains ◽  
Trade Flows ◽  
Value Chains ◽  
Trade Data ◽  
Traded Goods ◽  
Trade In Value Added

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.

scholarly journals Participation of Kazakhstan Pharmaceutical Companies in Global Value Chains Authors

2021 ◽  
Vol 17 (2) ◽  
pp. 473-485
Author(s):  
Elena D. Frolova ◽  
Zulparuza A. Abdurahkmanova ◽  
Alexander A. Ishukov
Keyword(s):  
Pharmaceutical Industry ◽  
Generic Drugs ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Pharmaceutical Companies ◽  
Enterprise Level ◽  
Micro Level ◽  
The Republic ◽  
National Economies

Growing interest of national economies in global value chains (GVCs) and the lack of micro-level research brought us to study the integration of countries in GVCs at the enterprise level (using the example of the pharmaceutical industry). We examine the situation in the Republic of Kazakhstan that is beginning to integrate into GVCs. Results of a questionnaire survey of the country’s pharmaceutical companies are considered along with public statistics. We developed a methodology to analyse the participation of a national entity in GVCs at the micro-level (including the enterprise participation in GVCs) and assess the performance of Kazakh pharmaceutical companies. The research is based on export and import data. A hypothesis on the participation of national pharmaceutical enterprises was partially confirmed: several surveyed companies participate in generic drugs GVCs at the production level, thus the value added is low. Features of pioneering entry into pharmaceutical global value chains for countries lacking such integration experience were demonstrated on a specific example. The obtained results can be used by countries starting the process of integration into pharmaceutical GVCs, as well as by Kazakhstan when developing the pharmaceutical industry.

scholarly journals Analysis of Bratislava and Žilina as urban areas in Western Slovakia in the context of associations among employment and industries

2017 ◽  
Vol 8 (4) ◽  
pp. 537-552 ◽  
Author(s):  
Gabriela Koľveková ◽  
Daniela Palaščáková
Keyword(s):  
Urban Areas ◽  
Slovak Republic ◽  
Value Added ◽  
Global Value Chains ◽  
Value Chains ◽  
Location Quotient ◽  
Border Regions ◽  
Cross Border ◽  
The Cross ◽  
The City

Research background: This paper observes especially the position of cities, urban areas in the context of global value chains — GVCs. Global value chains reflect specialization and labour division of companies, mostly multinational enterprises – MNEs. MNEs can be considered flagships of some industries. Such flagships influence suppliers and purchasers. MNEs are a part of networks or have got access to such networks that combine dispersion of the value chain, the boundaries of the firm and across national borders. Purpose of the article: The impetus for this work was to look at the position of Slovak cities (Bratislava, Žilina) in order to look for sectors that can help to develop the city and its adjacent regions, particularly cross-border regions. The paper discussed how the attribute of the cross-border regions gives the cities more advantageous position in GVCs. Methodology: Applying the method of location quotient allowed to shed a light on the GVCs, which cities participate in. Some cities were in a position to take advantage of participation in GVCs. Findings & Value added: Examined cities are located in the western part of the Slovak Republic. Discussion about the attribute of the cross-border regions can stimulate new ideas for finding causalities in city sprawl or in specialization patterns in the industrial structure of the city. Discussion further fosters the comparison of two cities strengths and weaknesses of each of them that were summarized in terms of employment and industrial exploitation of GVCs. This is the first finding and value added of the paper. The second one is that the method of location quotient is simple but provides clear evidence of the regional development or decline in particular industries and at the time of observation.

scholarly journals Importance of the industrial production sector and Serbia's inclusion in global value chains

2021 ◽  
Vol 69 (6-7) ◽  
pp. 289-305
Author(s):  
Miladin Kovačević ◽  
Katarina Stančić ◽  
Svetlana Jelić
Keyword(s):  
Industrial Production ◽  
Economies Of Scale ◽  
Value Added ◽  
Modern Society ◽  
Global Value Chains ◽  
Industrial Sector ◽  
Division Of Labour ◽  
Professional Staff ◽  
Value Chains ◽  
Investment Efficiency

The share of industrial production in GDP has expressed accelerated decrease for several last decades, while at the same time the sector of services gains an ever-increasing role in the modern society. A general impression is that the process of deindustrialization is an unavoidable global phenomenon. However, the fact that seems to be neglected is that historical observations indicate industrial sector as the pillar of longstanding development and progress, and that its role in overcoming the stages of crisis is of crucial importance, just as showed the episode of COVID-19 pandemic. The modern industrial sector cannot be observed out of the context of international production and trade, which acknowledge and express the final purpose of industrial investments, since they ensure possible overcoming of the national market limits, the achievement of economies of scale in relatively short time, and most importantly - the access to modern technologies. The development of global value chains, i.e. the production fragmentation based on the international division of labour, presents a revolutionary, global phenomenon, which has provided a chance for every country to get included into the process of global industrial production according to its comparative advantages. Serbia takes part in the global value chains owing to its geographic position, respectful human resources/professional staff, infrastructure, and the national openness; however, the implied question is the quality of the participation and what can be done to achieve better results. Can we regard Serbia just as the hub where final products are assembled or there is a considerable value added created in our factories? This paper offers an overview of the subsectors with the highest inclusion in the global value chains, as well as the analysis of their exports, output and gross value added trends, and the parameters of efficiency of investment in the most profitable subsectors. Identifying the areas with low investment efficiency is an important diagnostic tool for decision makers and presents a challenge as regards the adequate allocation of resources leading to increased profitability of investments and exports. Finally, we present the overview of the developments in ICT sector that is recognized as a valuable chance for Serbia, having in mind its increasing share in GDP, and its significance for the forthcoming process of digitalization and Industry 4.0.

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