Global value chain participation in Southeast Asia

López-González, Javier; Kowalski, Przemysław

doi:10.4324/9781315406787-2

Cited by 8 publications

(23 citation statements)

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“…The heterogeneity in GVC participation across ASEAN reflects various levels of development, resources, and degree of liberalization. As shown empirically by López-González and Kowalski (2017), the structural characteristics of a country (such as economic size, share of manufacturing and geographic location) are important determinants of GVC participation. Singapore remains the most GVC-connected economy in ASEAN, due to its unique position as one of the world's busiest ports and financial centers-a major entrepot for goods traded between Asia, Europe, and the US.…”

Section: Global Value Chains Prior To the Covid-19 Pandemic: Global T...mentioning

confidence: 99%

ASEAN and Global Value Chains: Locking in Resilience and Sustainability

2023

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Analyzing how the role of ASEAN economies in global value chains has helped spur their recovery and cut poverty, this publication shows the need to future-proof these critical networks to ensure inclusive, sustainable, and greener growth. It explains how the expansion of cross-border trade networks has helped Southeast Asian economies bolster manufacturing and spark a wave of job creation and innovation. On the flipside, it considers the associated environmental impact and social inequality. Highlighting systemic shocks to global trade, it explains how economic momentum, stronger institutions, and more inclusive growth can help mitigate risks and build resilient economies.

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Section: Global Value Chains Prior To the Covid-19 Pandemic: Global T...mentioning

confidence: 99%

ASEAN and Global Value Chains: Locking in Resilience and Sustainability

2023

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“…After all, they are already connected through global value chains (GVCs). Each country participating in GVC has the potential to increase value-added not just in one location, but in several locations, allowing countries to catch up and achieve greater convergence [ 5 , 15 , 32 , 33 ].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…It reflects the interest of and continuous supervision by a parent firm, which is a company domiciled in a country (affiliation firm). Usually, the highest FDI involvement is found in the manufacturing sector, which includes basic metals, machinery and equipment, and electrical and optical equipment [ 15 ]. In addition, FDI can encourage GVC participation through forward linkages, as in greenfield FDI, which aims to develop natural resource potential in capital-starved countries, or through backward linkages when directed to building export processing facilities [ 5 , 41 ].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

“…As stated in the literature, the upstream position in the supply chain is often associated with the context of less-developed countries. Where the level of innovation tends to be low, the production of raw materials and primary inputs is unlikely to develop [ 5 , 15 , 47 ]. This position shows that less-developed countries are not fully integrated into the international production network.…”

Section: Stylized Factsmentioning

confidence: 99%

“…Furthermore, firms in developed countries can easily combine their high-tech knowledge with lower-wage labor in developing countries to yield lower costs. Thus, technology transfer can increase economic activity redistribution to developing countries, including Asian countries [ 5 , 14 , 15 ].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Speed of convergence in global value chains: Forward or backward linkage

Wuri

Widodo

Hardi

2023

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Impact of opening-up on industrial upgrading in global value chain: a difference-in-differences estimation for Shanghai pilot free trade zone

Shahid,

Shijie

et al. 2023

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PurposeUsing the Shanghai pilot free trade zone (SPFTZ) as the testing ground for further reform and opening up,the links between global value chain (GVC) and pilot free trade zone (PFTZ) programs are mutually reinforcing. GVC creates opportunities for companies to use PFTZ to reduce their costs and increase their competitiveness, while PFTZ can facilitate the movement of goods within GVC and promote the development of GVC by attracting foreign investment. Overall, in SPFTZ, the industrial structure is promoted due to trade and investment facilitation, innovation promotion, and comprehensive service platform inside SPFTZ.Design/methodology/approachThis study examined industrial upgrading in GVC (IUGVC) using five indicators under three quantitative dimensions: product, process, and skill upgrading. Difference-in-Differences (DID) model is employed for the impact assessment of SPFTZ. Parallel trend analysis and Granger causality analysis are performed to check the reliability of DID outcome. Finally, robustness test using exogenous control variables are carried out.FindingsA positive impact of SPFTZ is found on IUGVC, which is due to promoting effect of SPFTZ on foreign direct investment and technological innovation. Based on the study's findings, policy recommendations are given, such as providing business support to enterprises operating inside a PFTZ.Originality/valueFrom a GVC perspective, the impact of theSPFTZ establishment on IUGVC cannot be ignored, and is so far missing in the literature.

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Global value chain participation in Southeast Asia

Cited by 8 publications

References 1 publication

ASEAN and Global Value Chains: Locking in Resilience and Sustainability

ASEAN and Global Value Chains: Locking in Resilience and Sustainability

Speed of convergence in global value chains: Forward or backward linkage

Impact of opening-up on industrial upgrading in global value chain: a difference-in-differences estimation for Shanghai pilot free trade zone

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