State policies and upgrading in global value chains: A systematic literature review

Abstract

This paper examines the role of state policymaking in a context of global value chains (GVCs). While the literature acknowledges that states matter in GVCs, there is little understanding of how they matter from a policy perspective. We address this tension between theory and practice by first delineating the state’s facilitator, regulator, producer and buyer roles. We then explore the extent to which corresponding state policies enable or constrain the following policy objectives: GVC participation; value capture; and social and environmental upgrading. We do so via a systematic review of academic GVC literature, combined with analysis of seminal policy publications by International Organizations. Our findings indicate that state policymakers leverage facilitative strategies to achieve GVC participation and enhanced value capture; with regulatory and public procurement mechanisms adopted to address social and environmental goals. Mixed results also emerged, highlighting tensions between policies geared towards economic upgrading on the one hand, and social and environmental upgrading on the other. Finally, we suggest that effective state policies require a multi-scalar appreciation of GVC dynamics, working with multiple and sometimes competing stakeholders to achieve their developmental objectives.

What motivates Vietnamese enterprises to upgrade in global value chains? Closing the intention-behavior gap

“…Specifically, firms' understandings about opportunities and threats under the attachment of RoO to FTAs urge them to implement their action plans for GVC upgrading as a strategic decision. On the other hand, the finding regarding the moderating role of governmental support contributes to the existing knowledge about the positive influence of governmental support on either entrepreneurial activity in general (Doanh et al, 2021;Hoppmann and Vermeer, 2020;Perkmann et al, 2013;Nguyen et al, 2018a, b;Shirokova et al, 2020) and GVC upgrading (De Marchi and Alford, 2021;Kaplinsky, 2015;Kole sa, 2018;OECD, 2013). Specifically, preferential treatments, either in terms of credit, finance or technology to firms would close the intention-behavior gap regarding moving up in their chains and hence, accelerate GVC upgrading among the economy.…”

“…, 2021; Hoppmann and Vermeer, 2020; Perkmann et al. , 2013; Nguyen et al ., 2018a, b; Shirokova et al , 2020) and GVC upgrading (De Marchi and Alford, 2021; Kaplinsky, 2015; Koleša, 2018; OECD, 2013). Specifically, preferential treatments, either in terms of credit, finance or technology to firms would close the intention-behavior gap regarding moving up in their chains and hence, accelerate GVC upgrading among the economy.…”

“…An appropriate domestic policy environment is, therefore, a crucial factor that facilitates firms' access to sufficient resources for their transitions from labor-intensive to skill-intensive production (United Nation ESCAP, 2015). More specifically, there is a growing body of literature that highlight the role of the government as either the facilitator or regulator in fostering GVC upgrading through technological and institutional support (De Marchi and Alford, 2021;Kaplinsky, 2015), knowledge-based assets (Kole sa, 2018) and favorable credit or tax policies (OECD, 2013). In this study, we argue that those supports may strengthen both firms' perceived and actual efficacy to implement their plans for GVC upgrading in practice.…”

“…However, there is a lack of explanation for this linkage from the sociological perspective. On the other hand, there is a growing body of literature that highlight the role of government as either the facilitator or regulator in fostering GVC upgrading through technological and institutional support (De Marchi and Alford, 2021; Kaplinsky, 2015), knowledge-based assets (Koleša, 2018) and favorable credit or tax policies (OECD, 2013). Those supports could enhance the firms' confidence and perceived self-efficacy to upgrade in their chains.…”

Global Value Chain Participation and Green Innovation: Evidence from Chinese Listed Firms

“…Another strand of the literature has focused on the environmental and energy consequences of GVC [ 19 , 20 , 21 ]. Two opposing hypotheses emerged with the advancement of globalization.…”