Integration through Intermediate Goods: A Comparison of G-7 Openness to Developing Country Exports

2010 ◽  
Vol 11 (2) ◽  
pp. 113-134
Author(s):  
John Berdell ◽  
Animesh Ghoshal
Keyword(s):  
Developing Countries ◽  
North America ◽  
Developing Country ◽  
Regional Integration ◽  
Developing Economies ◽  
Intermediate Goods ◽  
Production Networks ◽  
Diffusion Of Technology ◽  
Intermediate Goods Trade ◽  
Expenditure Elasticity

The fragmentation of manufacturing in G7 economies has substantially altered the way in which developing countries participate in world trade and production. Commodity chains and intertwined production networks have become increasingly important as vectors for the diffusion of technology and integration of developing countries into the world economy. We establish a set of simple and transparent benchmarks to compare and contrast the speed and extent to which production networks have integrated each of the G7 with developing economies through the importation of intermediate goods and examine these comparative indicators of G7 integration at both regional and global levels. We examine both total and intermediate goods trade flows and calculate the income-expenditure elasticity of developing-country sourced imports with respect to G7 incomes and also the elasticity of imported intermediate goods with respect to manufactured output. Within the G7, we find three tiers of openness to intermediate goods produced by developing countries, led by Germany and the US. Regional integration exhibits a clear pattern in which Central Europe appears to be integrating with developed Europe, Mexico with North America, and only East Asia is simultaneously integrating with North America, Europe and Japan.

Climate Regime Building in a Changing World and China's Role in Global Climate Governance

2014 ◽  
Vol 02 (01) ◽  
pp. 1450002
Author(s):  
Jiahua PAN ◽  
Mou WANG
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Developing Economies ◽  
Global Climate ◽  
Small Island ◽  
The European Union ◽  
Legal Form ◽  
Climate Governance ◽  
International Climate ◽  
Governance Processes

In 2012, the 18th session of the Conference of the Parties (COP18) of the United Nation Framework Convention on Climate Change (hereinafter referred to as the Convention) in Doha concluded a package of results which included the second commitment period of the "Kyoto Protocol", ending the Bali Roadmap negotiating mandate (hereinafter referred to as the Bali mandate) after five years, and officially opening the intensive negotiations of Durban Platform. Compared to the "dual-track" negotiation under Bali mandate, Durban Platform mandate is on "one-track". But it does not mean that some parties' concerns and positions about "dual-track" have been adjusted. They are seeking a way to realize their needs in Durban Platform. Therefore, "one-track" negotiation on Durban Platform does not simplify problems, but presents problems intensively. At the beginning of Durban Platform mandate, whether to mandate the Durban Platform negotiations was controversial among developing countries, while after consultations, Alliance of Small Island States (AOSIS) and the emerging developing economies divided on main concerns, such as mitigation targets, legal forms, sources of finance mechanism, etc. In fact, AOSIS's position gradually converged with the European Union (EU). And EU and AOSIS became the most aggressive powers to promote the Durban Platform negotiations. The traditional North–South divergence is facing adjustment, and new powers are restructuring negotiations. The huge disparity of interest among parties hinders progress in the Durban Platform negotiations. Parties will continue to debate and seek consensus on the interpretation of the principle of "common but differentiated responsibilities", emission reduction models and targets, sources of finance mechanism, the legal form of the future agreement, etc. With the social and economic development, China is receiving growing attention in the international climate governance processes. China's status as a developing country is being questioned by some developed and developing countries. Rapid increase of China's foreign investment and aid attracts worldwide attention, which stimulates the voices and expectations for China to shift its role as a developing country to shoulder more international obligations. However, China should be clearly aware of the fact that China's power of discourse is still very limited and far from being a leader in the world in various fields, including the international climate governance processes. China's participation in global climate governance, no matter its role being passively changed by others or a voluntary shift, still needs to keep a low profile, strengthen its economy, balance rights and obligations, and commit according to capabilities.

scholarly journals Asian financial development: the rise of a new financial system

2021 ◽  
Vol 10 (37) ◽  
pp. 155-167
Author(s):  
Elnur T. Mekhdiev ◽  
Zulfiya M. Bikmetova ◽  
Elvira N. Iamalova ◽  
Oksana N. Ignatieva ◽  
Aygul F. Samigullina
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Regional Integration ◽  
Developing Economies ◽  
Financial System ◽  
Global Imbalances ◽  
International Financial Institutions ◽  
Economic Strategy ◽  
Long Run ◽  
The Impact

Today, the global financial system is inefficient in bridging the gap between the developed and developing countries. The dynamically developing countries, such as Asian states, are not satisfied with modern international financial institutions and are actively involved in regional integration, creating new international financial institutions. The newly formed financial institutions contribute to the formation of a different system of financial relations in Asia, which, in turn, is being transformed into the Asian financial system. These trends cannot avoid the impact of the global imbalances. The object of the article is to prove the efficiency of the Asian financial institutions in fighting global imbalances in the region. The major task of these institutions is not the substitution of the current global mechanisms, but their assistance and helping them in solving the global problems on the regional level. The major results include the proof that the developing economies in Asia are more consolidated and capable of conducting a single economic strategy in the long run and the proof of the higher efficiency of Asian financial institutions and their single geo-economic strategy in the long run; this suggests that a new Asian financial system is being built.

scholarly journals Economic Integration and Network Trade: A Comparison of  East Asia  and the European Union

2020 ◽  
Vol 19 (1) ◽  
pp. 19-37
Author(s):  
Son Thanh Nguyen ◽  
Yanrui Wu
Keyword(s):  
European Union ◽  
East Asia ◽  
Trade Flows ◽  
Export Market ◽  
Intermediate Goods ◽  
The European Union ◽  
Production Networks ◽  
Large Share ◽  
Regional Production ◽  
Intermediate Goods Trade

The emergence of production networks has changed the structure of international trade, which is characterized by a large share of intra-regional trade flows and a rising value of intermediate goods trade or network trade between countries within the same region. This paper investigates the change in impact of trade determinants with the formation of regional production networks. At the global level, the results show that intermediate goods exports are more sensitive to trade barriers than total goods exports. At the regional level, the comparison reveals that, despite the efforts directed toward export market diversification in East Asia, the region is still more dependent on other regions’ economic conditions than the European Union is.

Globalization Backlash in Developing Countries: Broadening the Research Agenda

2021 ◽  
pp. 001041402110375
Author(s):  
Nita Rudra ◽  
Irfan Nooruddin ◽  
Niccolò W. Bonifai
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Research Agenda ◽  
Developing Economies ◽  
Industrialized Countries ◽  
Special Issue ◽  
Skilled Workers ◽  
Rich Countries ◽  
Early Phases ◽  
Over Time

This special issue explores why the globalization backlash is roiling rich industrialized countries. But why is the backlash less salient in developing ones? In this piece, we challenge scholars to consider why the backlash has not diffused widely to the developing world. We argue support for globalization depends on citizens’ expectations of future economic mobility. This is high in the early phases of globalization which encapsulates many developing economies. Since information about globalization’s effects is limited, observed mobility of some sustains optimism that the new economic order will allow everyone to prosper. Over time, unrealized expectations of mobility for less-skilled workers puncture this optimism. Such workers in rich countries are long past the honeymoon phase of globalization and confronting realities of stagnant incomes and job precarity. Barring visionary policies unlikely to emerge from today’s polarized politics, their discontent will soon be shared by their developing country counterparts, dooming future globalization.

Circular Economy Measurement and a Case of the Developing Country Context

2020 ◽  
pp. 241-257
Author(s):  
Kerem Toker ◽  
Fadime Çinar ◽  
Ali Görener
Keyword(s):  
Developing Countries ◽  
Social Change ◽  
Economic System ◽  
Developing Country ◽  
Circular Economy ◽  
Development Process ◽  
Developing Economies ◽  
Social Indicators ◽  
General View ◽  
Circular Economics

Circular economics (CE) is increasingly discussed among researchers, practitioners, and politicians. The discussions between the parties and the confusion about the concept cause the issue to remain on the agenda. According to the general view, CE is the slowing, shrinking, and closing of the welding flow to increase the welding efficiency. However, little attention has been devoted to measuring the CE level of a given economic system. The aim of this chapter is to demonstrate the emergence and development process of CE, and also to show how the CE level of any economic system can be measured. In this context, it is important for developing countries to interest with the issue but not in practice. To put this into perspective, the study examined Turkey's economic system. Turkey's economic, environmental, and social indicators examined were found to have a remote structure of the CE principle. It is expected that the results of the study will lead to a positive social change and become a framework for increasing the contribution of developing economies to the sustainable world.

scholarly journals Collaboration as an enabler for circular economy: a case study of a developing country

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jyoti L. Mishra ◽  
Kudzai Dominic Chiwenga ◽  
Khaoula Ali
Keyword(s):  
Developing Countries ◽  
Technology Transfer ◽  
Organizational Learning ◽  
Developing Country ◽  
Circular Economy ◽  
Developing Economies ◽  
Stakeholder Collaboration ◽  
Content Type ◽  
Multi Stakeholder

PurposeThe purpose of this paper is twofold: first, to advance the knowledge of Circular Business Models (BMs) over linear models by focusing on new dynamics which are unique to developing countries and have mostly been overlooked by contemporary literature; and second, to bring to the fore aspects of human-sphere which are currently under-researched in the circular economy (CE) domain. Therefore, the research explores how collaboration can facilitate the transition of a developing country’s economy through the creation of value from circular BMs and human-sphere.Design/methodology/approachTo fulfill the research objectives, the authors apply natural resource-based view (NRBV) theory to an in-depth case study. The authors draw the data from semi-structured interviews and observations in North African manufacturing companies.FindingsIt was found that multi-stakeholder collaboration is pertinent in implementing CE, especially in developing countries. Collaboration between companies, focusing on CE BMs, with other companies/SMEs could lead to technology transfer and organizational learning necessary for resource efficiency (RE) and clean technology (CT) – the basis for CE. The authors propose a model for collaboration as an enabler for CE.Research limitations/implicationsThe analysis found multi-stakeholder collaboration to be an important antecedent to CE implementation in a developing country context. Furthermore, the authors found multinational companies who implement CE BMs generate a beneficial symbiotic relationship with local businesses. These benefits mainly revolve around technology transfer and organizational learning which is necessary for RE and CT – the basis for CE. Therefore, to advance knowledge and practice in this area, the authors propose a model for collaboration as an enabler for CE.Practical implicationsThe authors argue for the importance of collaboration in advancing CE practices which can yield tangible benefits for developing economies.Originality/valueThis paper helps address the lack of theory driven research in CE. The paper is a pioneer in this research field as it proposes a theoretical framework for collaboration in CE drawing on from NRBV.

On the Myth of the Keiretsu Network: Japanese Electronics in North America

2003 ◽  
Vol 5 (3) ◽  
pp. 303-333 ◽  
Author(s):  
Mireya Solis
Keyword(s):  
North America ◽  
Regional Integration ◽  
Consumer Electronics ◽  
Production Networks ◽  
American Government ◽  
Electronic Networks ◽  
Consumer Electronic ◽  
Japanese Fdi ◽  
Japanese Companies ◽  
The Impact

This study of Japanese consumer electronic networks in North America challenges conventional wisdom on the pervasiveness of keiretsu ties in Japanese production networks abroad. The consumer electronics industry poses hard questions to current views on the relationship between keiretsu and FDI not only because of the more modest internationalization of subcontractors, but more interestingly, because Japanese electronic production networks overseas remained remarkably closed to outside suppliers even in the absence of keiretsu commitments that could constrain purchasing decisions. This article offers a comparison of domestic subcontracting practices in the Japanese automobile and consumer electronic industries, a discussion of the internationalization of electronic part makers, and an analysis of the sourcing strategies of Japanese firms in North America. The article highlights the impact of the non-market environment in Japanese FDI strategies since Japanese companies embarked on foreign production in North America as a direct response to export caps imposed by the American government and/or tighter regional integration rules adopted in NAFTA. Revealingly, Japanese automobile and electronic firms diverged in their reliance on subcontracting firms to meet the more stringent demands for regional production.

The Lure and Challenges of the Automobile Industry

2021 ◽  
pp. 9-42
Author(s):  
Richard F. Doner ◽  
Gregory W Noble ◽  
John Ravenhill
Keyword(s):  
Developing Countries ◽  
North America ◽  
Automobile Industry ◽  
Developing Economies ◽  
Policy Instruments ◽  
Developed Countries ◽  
Entry Barriers ◽  
Quality Requirements ◽  
Trade Regimes ◽  
Manufacturing Technologies

The automobile industry simultaneously entices and challenges developing countries. It is a leading employer, a major trader, and a crucial integrator of manufacturing technologies. Would-be entrants into the industry face formidable challenges, however: high entry barriers, demanding quality requirements, and (for components producers) assemblers’ expectations that component producers will be able to co-locate with their plants. Only 15 of the world’s largest auto components manufacturers come from outside Europe, Japan, or North America. Changes in technology and regional and global trade regimes have consolidated the industry and reduced the availability of policy instruments. Nonetheless, opportunities exist for developing economies, not least because of the potential for integration into regional and global supply chains. Most of the growth in demand for autos is concentrated in the developing world. Less developed countries on the periphery of major markets have substantially increased their share of global output over the last two decades.

Maximizing Utility vis-à-vis Developing Countries

2018 ◽  
Author(s):  
Sarah Blodgett Bermeo
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Formal Model ◽  
Policy Goals ◽  
The Government ◽  
Development Outcomes

This chapter develops a formal model of targeted development. It starts from the assumption that governments in industrialized states seek to maximize their own utility in interactions with developing countries. Development concerns compete with other policy goals for scarce government resources. The level of development resources an industrialized country government targets to a particular developing country depends on the weight the government places on development in that country as well as the efficiency of the country in turning resources into development outcomes that the industrialized state values. One of the key insights of the model is that, as governments work to maximize the utility gained per dollar (or euro, yen, etc.) spent, development motives will influence policy in multiple issue areas. The chapter also draws out implications of the theory for each of the issue areas examined in the empirical chapters.

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