An Investment Perspective on Global Value Chains

Abstract

for their invaluable comments and suggestions. The authors particularly appreciate the guidance and support of Caroline Freund, Global Director of Trade, Investment and Competitiveness at the World Bank.The team thanks the following programs and donors for making this report possible through their financial contributions: the Improving Business Environment for Prosperity (IBEP) program, with support from the UK Prosperity Fund managed by the Foreign, Commonwealth and Development Office (FCDO); and the Competitive Industries and Innovation Program (CIIP), with support from the European Union and the governments of Austria, Norway, and Switzerland.The team is also grateful to the many reviewers who provided thoughtful insights and guidance at both the concept and decision stages.

Integration into regional or global value chains and economic upgrading prospects: an analysis of the East African Community (EAC) bloc

“…This theory was developed by [24] and explains the internationalization process of firms. According to the theory, the age of firms and rapid changes in the international business environment are critical aspects in the early stages of the internationalization process of firms.…”

“…The interaction of domestic companies with multinational companies (MNEs) increases the likelihood of their participation in global value chains. [24] state that interaction is possible through four channels: (i) supplier connections in a GVC network, (ii) strategic alliances with multinational companies, (iii) direct export and (iv) foreign direct investment. Their empirical study in India shows that local firms in partnerships or joint ventures with multinationals are 30% better able to engage in direct exports than local firms without such interactions.…”

Editorial

“…Após a revolução dos supermercados no Quénia, os produtores locais ganharam uma maior independência em relação aos canais de vendas anteriores, o que lhes permitiu forjar laços mais diretos com os retalhistas mundiais. Isto permitiu que um novo grupo de empresas locais mais pequenas entrasse na cadeia de valor global através de acordos de subcontratação (Qiang, Zhenwei e Steenbergen, 2021).…”

“…Em 2020, o PIB diminuiu 15 % nas Maurícias e 13 % nas Seicheles. As fronteiras fechadas provocaram uma contração estimada em 70 % da indústria turística das Maurícias, em comparação com os níveis anteriores à COVID (Qiang, Zhenwei e Steenbergen, 2021). Prevê-se que o regresso aos níveis pré-COVID nos setores de serviços relacionados com o turismo seja lento.…”

Trade Therapy: Deepening Cooperation to Strengthen Pandemic Defenses

“…MNCs play a dominant role in health GVCs, though it varies significantly by segment. Globally, MNCs and their affiliates contributed 36 percent of output in 2016 (Qiang, Liu, and Steenbergen 2021), including about two-thirds of exports and more than half of imports. However, their share of medical goods and services varies hugely.…”