It can be applied to analyze the effects of standards e. Global value chains and development by gary gereffi. Global value chains are networks of production and trade across countries. In particular, it is argued that the global value chains literature has largely overlooked the political and contested nature of the concept by relying on conventional understandings of value borrowed from mainstream economics and business studies. To perform a search, you can combine terms from the filters to the left or use the search box below. Trading for development in the age of global value chains. Given this new understanding of globalized production systems, conventional international trade theory has evolved and incorporated the concept of gvcs to. Global value chain development report 2019 technical innovation, supply chain trade, and workers in a globalized world. Global value chains shed new light on trade brookings.
In order to reap the gains from value chain participation, countries must put in place the right kind of trade and investment policies. Industrial policy in indonesia a global value chain perspective this paper traces the evolution of industrial policies in indonesia from a global value chain gvc perspective. Over the past 30 years, they have helped poor countries grow faster, lifting many out of poverty. Trade conflict and the lack of major reforms may inhibit gvcs from remaining a force for prosperity. Integrating smes into global value chains challenges and policy actions in asia globalized production networks, or global value chains, provide an opportunity for small and mediumsized enterprises smes to upscale their business models and.
However, the global value chain concept came up when the discussion of the effects of globalization started and. The governance of global value chains home food and. However, new evidence shows that not all countries have gained from participating in global value chains, and that countryspecific characteristics matter for economic upgrading in global value chains. On the one hand, they break up the production process so that different steps can be carried. The problem with the phrase global commodity chain gcc is that the concept of a commodity does not refer to the product itself but the markets in which it is produced and sold kaplinsky, 1998. A theory of the spatialization of global value chains matthew c. The theory should be used as a complement to, not a substitute for, the rich detail and complexity that can be observed in global value chains, especially their historical, geographical, and sectoral specificity. Since david ricardo established the foundation of international trade theory two centuries. Analytical frameworks for global value chains world trade. This article argues that the global value chains gvc perspective bridges the firmspecific, privatesector and countrylevel, societal divide that has separated the.
Globalization has transformed how nations, firms and workers compete in the international economy over the past half century. There is considerable interest in the development community as to the complex relationship between gvcs and sustainable development outcomes. Global value chains gvcs account for almost 50% of global trade today. Through our reading of management, we challenge several assumptions underpinning much gvc thinking to provide a. This article argues that the global value chains gvc perspective bridges the firmspecific, privatesector and countrylevel, societal divide that has separated the international business and international economics literatures. This article reconsiders the notion of value and its role within global value chains analysis using insights offered by decolonial and critical authors. The global value chain concept has become one of the most influential frameworks used in the study of globalization. To better understand the activities through which a firm develops a competitive advantage and creates shareholder value, it is useful to separate the business system into a series of valuegenerating activities referred to as the value chain. Pdf global value chains as entrepreneurial capture. The governance of global value chains duke university. The idea of gvcs has roots in debates over development theory. The global value chain and internalization theory springerlink.
Since then the global commodity chain gcc approach has become better known as global value chain gvc analysis. Technological developments, such as robotics and big data, are reshaping global value chains gvcs, leading to changes in. Since then the global commodity chain gcc approach has become better known. Global commodity chains and the marxian law of value 435 throughthelensofthemarxianlawofvalue. Global value chains gvcs are increasingly playing a leading. Abstract the emergence of global value chains has opened up new ways to achieve development and industrialization. A commodity chain refers to a network of labor and production processes whose end result is a finished commodity. Washington, april 15, 2019 companies used to make things primarily in one country. It argues that value should be understood, not only as narrow pecuniary gains, but also as a broader philosophical question regarding the justice and purpose of productive activity. Mahutga department of sociology, university of california, riverside, 1226 watkins hall, riverside, california, 92521, usa matthew. Global value chains in a changing world world trade organization. Participation in global value chains gvcs, the international fragmentation of production, can lead to increased job creation and economic growth. Value chain analysis methodologies in the context of. In this article, i synthesize and extend the theoretical literature on global commodity chain gcc and global value chain gvc governance to generate a theory of the globalness of value chains and the spatialization of value chain linkages.
The global value chain development report is the result of intensive and detailed work in assembling and analyzing data on the structure of economies and on how they are linked. A handbook for value chain research prepared for the idrc by raphael kaplinsky and mike morris we are grateful to colleagues in both our individual institutions and in the spreading the gains from globalisation network particularly those participating in the bellagio workshop in september 2000 for discussions around many of the issues covered in. You can search a wide range of gvc publications, including books, journal articles, edited volumes, chapters in edited volumes, and working papers. This article critically examines how the concept of value has been understood in global value chains analysis. Yet, few efforts of crossfertilization between these two traditions have been attempted beyond. Global value chains gvcs have grown in importance in recent years, helping to integrate developing countries into global trade and to increase productivity. Pdf introduction to the handbook on global value chains. Global value chains gvcs have complicated both the reality and the analysis of international trade.
The rise of global value chains does not fundamentally change trade theory, but it does provide a more complex picture. Thus, the discussion focuses on the determinations of the chain form taken by the current forms of capitalist competition. Sep 18, 2017 this paper aims to provide an assessment of how the widespread adoption of new digital technologies i. In a research note in this issue, strange and humphrey discuss how a global value chain gvc approach serves to usefully move internalization theory towards a better understanding of the increasingly important middle ground between markets and hierarchies in the contemporary highly globalized international business scene. Karina developed a spanishlanguage manual on global value chains for economic. However, mainstream trade theories heckshcerohlinsamuelson model and new trade theory and new new trade theory are only concerned with final goods. Management theory offers a unique perspective on the political nature of production epitomized in global value chains gvcs. This page is a resource to find publications related to global value chains research. Global value chains and international development policy. Global value chain development report 2017 measuring and analyzing the impact of gvcs on economic development. But some countries have benefited more than others.
Global commodity chains and the marxian law of value. Duke university global value chains center duke gvcc erwin mill building, suite a116 2024 w. Mapping global value chains 45 december 2012 the oecd conference centre, paris action required. Breaking up the production process offers new opportunities for integration of rich and poor economies, with potential benefits for. This book by gary gereffi, one of the founders of the global value chains gvc framework, traces the emergence of arguably the most influential approach used to analyze globalization and its impacts. With the increasing understanding of the inputoutput relationships between core and supporting. Research into global commodity chains gcc, and later global value chains gvc, is an endeavor to explain the social and organizational. The attention given to this concept has quickly translated into an expanding body of global chains literature. This article argues that the global value chains gvc perspective bridges the firmspecific, privatesector and countrylevel, societal divide that has separated the international business and. Pdf the global value chains gvc framework has been shaped by many. A key mechanism that explains the policy impact of the gvc approach are the networks created between the policy entrepreneurs inside.
Giventhislimitedscope, the paper will only examine one of the two constitutive components of the notion of gccs. The views presented in this paper are those of the authors and do not necessarily represent the views of the copla programme, its partner organisations, including the odi, or its funders. Global value chains gvcs are extending their reach into regions and sectors that have historically been underinvolved in this business model. Rethinking the notion of value in global value chains. Technological developments, such as robotics and big data, are reshaping global value chains gvcs, leading to changes in labour markets and supply chain management. The study of global value chains requires inevitably a trade theory that can treat input trade. Thanks to global value chains gvcs, a single finished product often results from manufacturing and assembly in multiple countries, with each step in the process adding value to the finished product. Quality standards, conventions and the governance of. Global value chains have become a dominant feature of world trade, encompassing developing, emerging, and developed economies.
Building on global value chain theory, we introduce a configurational framework that explicitly addresses the employment relations implications of the interconnections within and between firms in the global economy. This paper aims to provide an assessment of how the widespread adoption of new digital technologies i. How a value chain approach can benefit the rural poor jonathan mitchell, jodie keane and christopher coles december 2009 disclaimer. Jul 10, 2017 global value chains gvcs have complicated both the reality and the analysis of international trade.
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