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Making Global Value Chains Work for Development

Making Global Value Chains Work for Development
Author: Daria Taglioni
Publisher: World Bank Publications
Total Pages: 611
Release: 2016-06-10
Genre: Business & Economics
ISBN: 1464801622

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Economic, technological, and political shifts as well as changing business strategies have driven firms to unbundle production processes and disperse them across countries. Thanks to these changes, developing countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access to resources and technology while advancing development goals. However, participating in global value chains does not automatically improve living standards and social conditions in a country. This requires not only improving the quality and quantity of production factors and redressing market failures, but also engineering equitable distributions of opportunities and outcomes - including employment, wages, work conditions, economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development challenges. Following this perspective, Making Global Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it serves as a repository of analytical tools; and it proposes a strategic framework to guide policymakers in identifying the key objectives of GVC participation and in selecting suitable economic strategies to achieve them.


Global Value Chains and Developing Country Employment

Global Value Chains and Developing Country Employment
Author: Ben Shepherd
Publisher:
Total Pages: 24
Release: 2013
Genre: Business
ISBN:

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This paper provides a review of the available literature on global value chains (GVCs) and employment markets in developing countries. Due to the difficulty of observing intra-GVC transactions, there is very little direct empirical work on GVCs and labour markets. However, it is possible to extrapolate from the extensive empirical work already undertaken on firm internationalisation and labour markets to draw inferences as to the likely impacts of GVCs. The review therefore focuses on the labour market impacts of three processes that lie at the core of GVC development: importing, exporting, and foreign direct investment (FDI). It examines their impact on labour demand and wages, and disaggregates the effects whenever possible by skill level. The available empirical evidence strongly suggests that the type of activities undertaken by GVC participants influence labour market outcomes. For instance, many GVC firms are vectors of technological upgrading that in turn increases the relative demand for skilled labour. In these cases, GVC participation is linked to higher relative wages for skilled workers, but also greater wage inequality between skilled and unskilled workers. The evidence on outcomes is more mixed as regards pure processing trade (assembly), however: the limited data available on firms engaged purely in these activities suggests that they do not systematically pay higher wages than domestic firms, which is the reverse of the finding for foreign-owned firms, exporters, and importers in general. The labour market effects of GVCs in developing countries are therefore likely to be broadly positive, but highly case specific. The review therefore concludes with two case studies--electronics in Asia and services in Chile--that demonstrate the complexity of the issues involved, and the role of complementary policies in areas such as human capital development.


World Development Report 2020

World Development Report 2020
Author: World Bank
Publisher: World Bank Publications
Total Pages: 511
Release: 2019-11-19
Genre: Business & Economics
ISBN: 1464814953

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Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.


Global Value Chains and Development

Global Value Chains and Development
Author: Gary Gereffi
Publisher: Cambridge University Press
Total Pages: 497
Release: 2019-01-24
Genre: Business & Economics
ISBN: 1108471943

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Studies conceptual foundations of GVC analysis, twin pillars of 'governance' and 'upgrading', and detailed cases of emerging economies.


Reshaping Global Value Chains in Light of COVID-19

Reshaping Global Value Chains in Light of COVID-19
Author: Paul Brenton
Publisher: World Bank Publications
Total Pages: 217
Release: 2022-03-01
Genre: Business & Economics
ISBN: 1464818223

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Global value chains (GVCs) have driven dramatic expansions in trade, productivity, and economic growth in developing countries. This book examines the impact of the COVID-19 pandemic on GVCs and explores whether they can continue to be a driver of trade and development. The report reviews previous crises and what these tell us about the resilience of GVC firms to shocks. It examines the observed impact of COVID-19 on trade during the sharp global recession of 2020. It summarizes discussions with GVC firms on the impacts of, and their responses to, the COVID shock. GVCs showed surprising resilience, but the rapid recovery raised new issues with supply chains. The book then explores simulations from a global economic model of the potential longer-term impacts of COVID-19 on developing countries and other key factors shaping the global economy, including the evolving role of China, increasing trade restrictions and policy responses to global warming. The analysis shows that while there are risks associated with GVCs, especially those concentrated around key nodes and where opportunities to find alternative suppliers or buyers are limited, there are mechanisms by which GVCs maintain trade relationships during a crisis, paving the way for a strong trade-led recovery. Measures are identified that can enhance the resilience of GVCs in low-income countries. This report finds that policies that maintain and enhance trade can contribute toward crisis management and recovery. Attempts to reshore production would make all countries worse off, including those that implement them, and could drive 52 million people, mainly in Africa, into extreme poverty. Measures to meet climate change commitments will have more profound impacts, leading to a shift away from carbon-intensive GVCs, while new opportunities for trade will arise in GVCs that are less carbon intensive.


Stitches to Riches?

Stitches to Riches?
Author: Gladys Lopez-Acevedo
Publisher: World Bank Publications
Total Pages: 207
Release: 2016-03-28
Genre: Business & Economics
ISBN: 1464808147

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South Asia is in the midst of a demographic transition. For the next three decades, the growth of the region’s working age population will far outpace the growth of dependents. Close to one million individuals will enter the workforce every month. This large, economically active population can increase the region’s capacity to save and make crucial investments in physical capital, job training, and technological advancement. But for South Asia to realize these dividends, it must ensure that its working-age population is productively employed. As one of the most prominent labor-intensive industries in developing countries, apparel manufacturing is a prime contender. With around 4.7 million workers in the formal sector and another estimated 20.3 million informally employed (combined with textiles), apparel already constitutes close to 40 percent of manufacturing employment. And given that much of apparel production continues to be labor-intensive, the potential to create more and better jobs is immense. There is a huge window of opportunity now for South Asia, given that China, the dominant producer for the last ten years, has started to cede some ground due to higher wages. But the region faces strong competition from East Asia—with Cambodia, Indonesia, and Vietnam already pulling ahead. Plus the sector suffers from production inefficiencies and policy bottlenecks that have prevented it from achieving its potential. Against this backdrop, this report hopes to inform the debate by measuring the employment gains that the four most populous countries in South Asia—Bangladesh, India, Pakistan and Sri Lanka (hereafter `SAR countries’)—can expect in this new environment of increased competition and scrutiny. Its main message is that it is important for South Asian economies to remove existing impediments and facilitate growth in apparel to capture more production and create more employment as wages rise in China. The successful manufacturers will be those who can supply a wide range of quality products to buyers rapidly and reliably—not just offer low costs.


Gender and Work in Global Value Chains

Gender and Work in Global Value Chains
Author: Stephanie Barrientos
Publisher: Cambridge University Press
Total Pages: 338
Release: 2019-05-23
Genre: Political Science
ISBN: 1108600654

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This book focuses on the changing gender patterns of work in a global retail environment associated with the rise of contemporary retail and global sourcing. This has affected the working lives of hundreds of millions of workers in high-, middle- and low-income countries. The growth of contemporary retail has been driven by the commercialised production of many goods previously produced unpaid by women within the home. Sourcing is now largely undertaken through global value chains in low- or middle-income economies, using a 'cheap' feminised labour force to produce low-price goods. As women have been drawn into the labour force, households are increasingly dependent on the purchase of food and consumer goods, blurring the boundaries between paid and unpaid work. This book examines how gendered patterns of work have changed and explores the extent to which global retail opens up new channels to leverage more gender-equitable gains in sourcing countries.


Interconnected Economies Benefiting from Global Value Chains

Interconnected Economies Benefiting from Global Value Chains
Author: OECD
Publisher: OECD Publishing
Total Pages: 274
Release: 2013-05-28
Genre:
ISBN: 9264189564

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This book examines how global value chains have evolved and the policy challenges they have created.


Services In Global Value Chains: Manufacturing-related Services

Services In Global Value Chains: Manufacturing-related Services
Author: Patrick Low
Publisher: World Scientific
Total Pages: 784
Release: 2016-06-21
Genre: Business & Economics
ISBN: 9813141476

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This compilation of 22 firm-specific case studies is an important contribution to the discussion of 'servicification' trends in manufacturing. 'Services have increased in importance and value in many manufacturing value chains, making companies that produce physical products look more like service enterprises. What services do global value chains use in their operations, how important are they and how do economic policies shape firms' configurations, operations, and location of global value chains? This book addresses these questions and more.The interviewed firms, based in 12 APEC economies, come from different sectors ranging from multinational automotive, construction equipment, and electrical appliance manufacturers to small and medium manufacturers of watches or chemical for water treatment. The book analyses what specific services are important in different stages of the value chain, and whether they are typically provided in-house or outsourced.


Global Value Chains

Global Value Chains
Author: Meine Pieter van Dijk
Publisher: Amsterdam University Press
Total Pages: 281
Release: 2012
Genre: Business & Economics
ISBN: 9089643605

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Mondiale waardeketens zijn het complexe netwerk van activiteiten tussen lokale producent en eindgebruiker. "Global value chains" schetst de invloed van deze waardeketens op lokaal, nationaal en internationaal niveau. Het boek geeft eerst een theoretisch en wetenschappelijk kader. Vervolgens krijgt de lezer een compleet beeld van de betekenis van mondiale waardeketens aan de hand van diverse casestudies, zoals de bierbrouwindustrie in Ghana, de Namibische bio-industrie, de industrie van halfgeleiders in China en Maleisië en het toerisme in Tanzania.