Upgrading the Global Value Chains After COVID-19

2021 ◽  
pp. 191-210
Author(s):  
Osman Seraceddin Sesliokuyucu
Keyword(s):  
Supply Chains ◽  
Production System ◽  
World Trade ◽  
Production Capacity ◽  
Global Value Chains ◽  
Value Chains ◽  
Economic Shocks ◽  
Supply Shock ◽  
The World ◽  
Backward And Forward Linkages

The COVID-19 pandemic-related economic lockdowns and restrictions have caused socio-economic uncertainties in the world since 2020. The pandemic-induced economic shocks affected world trade, especially the reactions in fragile markets. As a result of the strict rules taken by the countries, the decrease in the supply of intermediate goods inputs used in industries worldwide, supply shock has caused global supply chains and economic problems to spread through supply chains. Due to the increase in demand exceeding the current supply and production capacity, the fragmented production system, which spread throughout the world, led to the risks related to global value chains (GVC). In this context, discussion of the uplift processes within the chain, which expresses the upgrading perspective, has come to the fore again. The solutions in chains, which are applied by industries in the pandemic process, emphasize the importance of backward and forward linkages in the chain.

scholarly journals CADEIAS GLOBAIS DE VALOR (CGV): A FRAGMENTAÇÃO DO PROCESSO PRODUTIVO CONFORME A ORGANIZAÇÃO MUNDIAL DO COMÉRCIO

2019 ◽  
Vol 4 (57) ◽  
pp. 399
Author(s):  
Joana STELZER ◽  
Silvano Denega SOUZA ◽  
Adrielle Betina I. OLIVEIRA
Keyword(s):  
World Trade Organization ◽  
World Trade ◽  
Global Value Chains ◽  
Value Chains ◽  
Commodity Chain ◽  
Economic Policies ◽  
The World ◽  
Productive Process ◽  
Fragmentation Of Production ◽  
Economy Globalization

RESUMOObjetivo: O artigo visa identificar a aparição e a abordagem das CGV (Cadeias Globais de Valor) no âmbito da Organização Mundial do Comércio (OMC), tendo em vista a aparente alteração na plasticidade do comércio internacional e, por consequência, na economia mundial. A globalização nos tempos atuais pode ser compreendida como uma fragmentação da produção, em que o processo produtivo de uma mercadoria (ou serviço) é concebido em etapas, porém, executadas em diversos Estados.Metodologia: A metodologia utilizada é dedutiva com abordagem qualitativa e a pesquisa desenvolve-se por meio de bibliografias.  Resultados: O destaque do principal resultado é a possibilidade de identificar características distintas entre Cadeias de Commodities, passando pela Cadeia de Commodities Global, até se alcançar as Cadeias Globais de Valor. Revela, também, que o avanço das CGV tem-se mostrado positivo, mormente no que tange às repercussões observadas nas políticas comerciais e econômicas dos Estados.Contribuições: Como principal contribuição, o artigo apresenta uma análise do cenário internacional no que tange ao comércio e sua nova forma de transacionar, sobretudo com Estados não desenvolvidos. Partindo-se da análise do CGV e sua relação com a Organização Mundial do Comércio,  a revelação desse emergente modelo foi flagrada, ademais, na insistente inserção dos termos CGV e Global Value Chains nos documentos e relatórios da Organização Mundial do Comércio, especialmente com maior intensidade a partir de 2014.PALAVRAS-CHAVES: Tributo; responsabilidade tributária; terceiros.  ABSTRACTObjective: To identify the appearance and approach of GVCs (Global Value Chains) within the World Trade Organization (WTO), in view of the apparent change in the plasticity of international trade and, consequently, in the world economy. Globalization in the present times can be understood as a fragmentation of production, in which the productive process of a commodity (or service) is conceived in stages, but executed in several States.Methodology: The methodology used is deductive with qualitative approach and the research is developed via bibliographies.Results: The highlight of the main result is the ability to identify distinct characteristics between Commodity Chains, going through the Global Commodity Chain, until reaching Global Value Chains. It also reveals that the advancement of GVCs has been positive, especially regarding the repercussions observed in the commercial and economic policies of the States.Contributions: As the main contribution, the article presents an analysis of the international scenario regarding trade and its new way of trading, especially with undeveloped States. Based on the analysis of the GVC and its relationship with the  World Trade Organization, the revelation of this emerging model was also caught in the insistent insertion of the terms GVC and Global Value Chains in World Trade Organization documents and reports, especially with greater emphasis. Intensity as of 2014.KEYWORDS: Tax; tax liability; third parties.

scholarly journals Minimizing risks of integrating Ukrainian industry into global value chains

2021 ◽  
pp. 64-75
Author(s):  
Оksana Kushnirenko ◽  
Olga Zarudna
Keyword(s):  
Supply Chains ◽  
World Trade ◽  
Financial Stability ◽  
System Analysis ◽  
Global Value Chains ◽  
Risk Identification ◽  
Value Chains ◽  
Technological Gap ◽  
Development Levels ◽  
High Level

Relevance of the research topic Global value chains (GVC) are the dominant element of world trade, which incorporated various stages of processing into global supply chains of different development levels countries. The potential to include of Ukrainian producers into the GVC is very high, but not fully exploited now. Only innovative, technologically equipped, certified companies with a reliable business reputation have a chance to enter GVC. Formulation of the problem. The challenges of the coronavirus pandemic increase the importance of justifying new approaches to opportunities for Ukrainian industry, in particular, for successful integration into the GVC. Selection of unexplored parts of the general problem. Changes in the organization of world trade have occurred in the context of the coronary. This is due to disruption of intermediate processing supply chains, shifting to shorter chains and control increasing over the quality and safety of products in compliance with sanitary standards. This opens up new opportunities for Ukrainian producers, while the problem of reducing risks and removing obstacles remains insufficiently studied. Setting the task, the purpose of the study. The study aims to highlight key risks and development of a set of measures to minimize them while integrating Ukrainian industry in GVC. Method or methodology for conducting research. The work used general scientific methods: system analysis, abstract logical, expert assessments, as well as special research methods: statistical comparisons, groupings, sampling (to risk identification in the GVC integration process). Conclusions. Analysis of the development of GVC in the context of post-pandemic constraints made it possible to identify key risks and obstacles for Ukrainian producers, included among them are a high level of vulnerability was established from tightening control conditions and strict restrictions on supplies; The digital and technological gap in accordance with world standards; excessive concentration of the import component in selected product categories, causes dependence on foreign suppliers; a huge shortage of capital; decrease in profitability; deterioration of financial stability and solvency.

scholarly journals When Linder meets Hirschman: inter-industry linkages and global value chains in business services

2019 ◽  
Vol 28 (6) ◽  
pp. 1555-1586 ◽  
Author(s):  
Javier López González ◽  
Valentina Meliciani ◽  
Maria Savona
Keyword(s):  
Empirical Support ◽  
Global Value Chains ◽  
Emerging Countries ◽  
Value Chains ◽  
Business Services ◽  
Emerging Country ◽  
The World ◽  
Traditional Manufacturing ◽  
The Relationship ◽  
Backward And Forward Linkages

Abstract This article looks at the determinants of a country’s participation in business services (BS) global value chains (GVCs). BS GVCs are comparatively less explored than traditional manufacturing ones, and there is a gap in the literature on the relative positions of countries in BS GVCs and the opportunities they might open for development. This article puts forward and finds empirical support to the conjecture that the domestic structure of backward and forward linkages à la Hirschman, alongside the domestic representative demand for BS à la Linder, are of high importance. The results, based on the World Input-Output Database, suggest that the presence of strong domestic backward-linked industries to BS makes an emerging country more likely to create domestic value within BS GVC. Our findings contribute to the debate on a “premature de-industrialization” in emerging countries and on the relationship between levels of development and engagement in BS GVCs.

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.

Going Green

2012 ◽  
Vol 56 (1-2) ◽  
Author(s):  
Nicole Reps ◽  
Boris Braun
Keyword(s):  
Supply Chains ◽  
Organizational Support ◽  
Value Chain ◽  
Qualitative Interviews ◽  
Developed Countries ◽  
Global Value Chains ◽  
Value Chains ◽  
Recent Debate ◽  
Western Perspective ◽  
Green Supply Chains

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.

scholarly journals The similarity of global value chains: A network-based measure

2018 ◽  
Vol 6 (4) ◽  
pp. 607-632 ◽  
Author(s):  
ZHEN ZHU ◽  
GREG MORRISON ◽  
MICHELANGELO PULIGA ◽  
ALESSANDRO CHESSA ◽  
MASSIMO RICCABONI
Keyword(s):  
Global Value Chains ◽  
Value Chains ◽  
Input Output ◽  
The World ◽  
Average Similarity ◽  
Node Similarity ◽  
Node Attributes ◽  
Measure Of Similarity ◽  
Increasing Trends ◽  
Over Time

AbstractInternational trade has been increasingly organized in the form of global value chains (GVCs). In this paper, we provide a new method for comparing GVCs across countries and over time. First, we use the World Input–Output Database (WIOD) to construct both the upstream and the downstream global value networks. Second, we introduce a network-based measure of node similarity to compare the GVCs between any pair of countries for each sector and each year available in the WIOD. Our network-based similarity is a better measure for node comparison than the existing ones because it takes into account all the direct and indirect relationships between the country–sector pairs, is applicable to both directed and weighted networks with self-loops, and takes into account externally defined node attributes. As a result, our measure of similarity reveals the most intensive interactions among the GVCs across countries and over time. From 1995 to 2011, the average similarity between sectors and countries have clear increasing trends, which are temporarily interrupted by the recent economic crisis. This measure of the similarity of GVCs provides quantitative answers to important questions about dependency, sustainability, risk, and competition in the global production system.

Regional Trade Agreements with Global Value Chains

FEDS Notes ◽  
2021 ◽  
Author(s):  
François de Soyres ◽  
◽  
Julien Maire ◽  
Guillaume Sublet ◽  
◽  
...  
Keyword(s):  
Trade Agreements ◽  
Global Value Chains ◽  
Regional Trade Agreements ◽  
Value Chains ◽  
Regional Trade ◽  
The World

This FEDS Note looks at the effect of Regional Trade Agreements on trade between the agreement zone and the rest of the world. Global Value Chains are associated with an increase in outflow. Hence, RTAs can be a stumbling block for multilateralism.

Asian investments target large Latin American markets

2021 ◽  
Keyword(s):  
Supply Chains ◽  
Latin American ◽  
High Technology ◽  
Global Value Chains ◽  
Value Chains ◽  
Automated Manufacturing ◽  
Investment Climate ◽  
Content Type ◽  
South Korean ◽  
Technology Investment

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.

scholarly journals Are Multinational Companies Responsible for Working Conditions in Their Supply Chains? From Intuition to Argument

2011 ◽  
Vol 33 (1) ◽  
Author(s):  
Sonja Dänzer
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Working Conditions ◽  
Global Value Chains ◽  
Multinational Companies ◽  
Support Programs ◽  
Value Chains ◽  
Promising Strategy ◽  
Supply Chain Governance ◽  
Prospective Responsibility

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.

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