Global value chains – a ladder for development?

Dünhaupt, Petra; Herr, Hansjörg

doi:10.1080/02692171.2020.1815665

Cited by 19 publications

(9 citation statements)

References 31 publications

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“…This hypothetical simultaneity bias causes endogeneity. Another simultaneity bias may arise with economic growth and labour, since GVC participation could affect economic growth (Ignatenko, Raei, and Mircheva 2019) as well as labour (Pan 2020;Dünhaupt and Herr 2021). (3) The model is built from extant literature that is not exhaustive in terms of the explanatory variables of GVCs.…”

Section: Estimation Strategymentioning

confidence: 99%

Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade

Efogo

Wonyra

Osabuohien

2021

International Review of Applied Economics

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This study investigates how foreign direct investment (FDI) affects the participation of developing countries in global value chains (GVCs). This inquiry is crucial as FDI is seen, at least theoretically, as a means of expediting developing countries' participation in GVCs in some ways. It provides empirical evidence of this nexus between FDI and GVC using a dynamic panel data model including 43 developing countries (2010-2019). Our results show, among other things, that FDI has a significantly positive effect on the participation of developing countries in GVCs. This is found to be the case regardless of whether the FDI is in the primary, secondary or tertiary sector. However, to benefit fully requires policymakers to strengthen the absorptive capacity of the local labour force (productivity and education level).

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Section: Estimation Strategymentioning

confidence: 99%

Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade

Efogo

Wonyra

Osabuohien

2021

International Review of Applied Economics

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“…However, different paths have been identified in the existing literature (Carballa Smichowski et al, 2021), which has found that the magnitude of the benefits differs depending on the context in which the GVCs are developed, particularly with respect to the firms' ownership within the GVC. Thus, while Asian State‐owned firms become national champions, in Latin America private companies do not provide benefits for the host country (Dünhaupt & Herr, 2021; Ravenhill, 2014). Additionally, offshoring strategies implemented by firms located in developed countries allow the creation of new jobs (SDG 8), often also for women due to their specific skills which are needed for production activities (SDG 5).…”

Section: Impacts Of Backshoring Strategies On Sdgs In Home and Host C...mentioning

confidence: 99%

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Di Stefano,

Fratocchi,

Martínez‐Mora

et al. 2023

Sustainable Development

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After decades of offshoring their manufacturing activities, an increasing number of companies are revising their location strategies and implementing reshoring decisions, including backshoring (relocation in the home country) and nearshoring (relocation in the home region) alternatives. It has been recognized that reshoring strategies are consistent with the sustainable production approach, since they allow companies to produce goods in a manner that is socially beneficial, economically viable, and environmentally less harmful over the whole life cycle of those goods. Additionally, there are early indications that reshoring can also promote and support sustainable consumption approaches. Consequently, reshoring has a wide range of impacts in both the home and the host countries, also in terms of the Sustainable Development Goals (SDGs). However, this topic has received little attention in the extant reshoring literature. This paper seeks to contribute to the discussion by adopting a two‐step approach. Initially, we analyze the very few contributions available on this topic; then, we identify and discuss which of the 17 SDGs are impacted by reshoring decisions at both the home and the host country level. It emerges that reshoring decisions have several and differentiated impacts in terms of SDGs. In general, these impacts are positive for home countries and negative for host ones. For this reason, a trade‐off emerges when a single relocation decision is taken and implemented. Based on this evidence, implications for scholars, managers and policy makers are presented and discussed.

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“…Davis and Caldeira ( 2010 ) argue that a consumption-based accounting of CO 2 emissions indicates the potential for global carbon leakage, with the majority of international trade in CO 2 emissions coming from China and other developing markets and being exported to consumers in industrialized countries. Furthermore, Dünhaupt and Herr ( 2021 ) all considered the fact that the majority of developing countries, like China, join GVCs by exporting comparatively large amounts of finished goods in their early stages of development, which generates a significant amount of CO 2 emissions and forces the poorer nations to bear the costs of natural depletion.…”

Section: Literature Reviewmentioning

confidence: 99%

Carbon neutrality along the way to participate in global value chains: the threshold effect of information globalization of BRICS countries

Liu

Nadeem

Wang

et al. 2023

Environ Sci Pollut Res

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Using panel data from BRICS countries over the period 2000 to 2018, a multi-variate threshold model was built to investigate how global value chain (GVC) participation and information globalization affects CO 2 emission. We further decompose the information globalization into two indicators, i.e., de facto measure and de jure measure. The main findings show that the estimated value of threshold is 4.02 and 1.81 for both de facto and de jur measures of information globalization. The findings suggest that information globalization rate above the threshold level negatively affects the carbon emissions. De facto and de jure measures show a strong single threshold effect when GVC participation is chosen as the major explanatory variable. Similarly, participation in GVCs has a large single threshold impact when information globalization is taken as the primary independent variable. Overall, the results show that the larger the information globalization for the countries under analysis, the modified impact of GVC participation on CO 2 emission reduction is larger. The robustness test validates the stability and coherence of the study’s findings. The opportunities that the information globalization along the approach to participate in GVCs presents for the accomplishment of carbon neutrality should be properly utilized by policymakers. There should be expansion the participation in GVCs with digital infrastructure and to enhance the assessment system for the use of technology spillover effects to increase environmental-friendly GVC ladder.

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Global value chains – a ladder for development?

Cited by 19 publications

References 31 publications

Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade

Foreign direct investment and participation of developing countries in global value chains: lessons from the last decade

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Carbon neutrality along the way to participate in global value chains: the threshold effect of information globalization of BRICS countries

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