The roles of the state in global value chains

Horner, Rory; Alford, Matthew

doi:10.4337/9781788113779.00044

Cited by 54 publications

(37 citation statements)

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“…Relatively high-value activities 4 are increasingly located in specialized components within the production process, and in pre-production (e.g., research and development, design) and postproduction (e.g., marketing, brand, and finance) services in value chains. This is sometimes referred to as the ''smile curve of value creation'' (Mudambi, 2008 (Wade, 2018;Horner & Alford, 2019;Mayer & Gereffi, 2019).…”

Section: • Value Is Distributed Unevenly Across Supply Chainsmentioning

confidence: 99%

“…This is sometimes referred to as the “smile curve of value creation” (Mudambi, 2008 ; Rehnberg & Ponte, 2018 ; Fernandez-Stark & Gereffi, 2019 ). State policies can exert conflicting pressures on lead firms as well as suppliers in value chains While the expansion of international production networks and export-oriented industrialization for developing economies was promoted by advanced industrial states and global financial institutions like the World Bank and the International Monetary Fund from the 1980s through the early 2000s, a series of events including the global recession of 2008–2009, the U.S.–China trade war, resurgent economic nationalism, and the novel coronavirus health crisis of 2020 have magnified the prospects for policy conflicts in the current era (Wade, 2018 ; Horner & Alford, 2019 ; Mayer & Gereffi, 2019 ). …”

Section: The Global Value Chain Frameworkmentioning

confidence: 99%

“…In large part, this is because supply chain dynamics vary considerably, not just by industry but also by the characteristics of specific products, the strategies of the companies that make them, and the distribution channels involved (Cattaneo, Gereffi, & Staritz, 2010 ; Staritz, Gereffi, & Cattaneo, 2011 ). In addition, the policy drivers of supply chains are different in importing versus exporting economies, advanced industrial versus developing nations, and the home and host countries of the large multinational enterprises (MNEs) that typically lead and orchestrate global industries (Taglioni & Winkler, 2016 ; Stolzenburg, Taglioni, & Winkler, 2019 ; Horner & Alford, 2019 ).…”

Section: Introductionmentioning

confidence: 99%

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What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

2020

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The COVID-19 pandemic has caused a dramatic shortage in the medical supplies needed to treat the virus due to a massive surge in demand as the disease circled the globe during the first half of 2020. Prior to the crisis, there was an interdependence of trade and production for medical supplies, with advanced industrial countries like the United States and Germany specializing in the relatively high-tech medical devices sector, while low-cost production hubs such as China and Malaysia were leading producers of less technologically sophisticated personal protective equipment (PPE) products such as face masks, surgical gloves, and medical gowns. After the COVID-19 outbreak, global shortages of PPE products emerged as many affected countries imposed export controls and sought ways to boost domestic output. A case study of the face mask value chain in the United States shows misalignments between the priorities of U.S. federal government officials and the strategies of leading U.S. multinational producers of face masks, which resulted in exceptionally costly policy delays in terms of health outcomes. On balance, the U.S. shortage of N95 respirators during the COVID-19 pandemic is more a policy failure than a market failure. The global value chain framework highlights strategic options that could lead to more resilient supply chains and diversified sourcing patterns.

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Section: • Value Is Distributed Unevenly Across Supply Chainsmentioning

confidence: 99%

Section: The Global Value Chain Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

2020

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“…More recently, scholars across both traditions have begun to explore the role of public governance in shaping labour conditions and innovation in GVCs (Locke, 2013;Van Assche, 2017). For instance, in the context of GVCs, scholars have explored the role of states and civil society organisations in determining product and labour standards among suppliers in the global South (Alford et al, 2017;Langford, 2019;Horner & Alford, 2019). Yet, empirical literature analysing the interaction between private and public governance of RVCs remains 'surprisingly very limited' (Slany, 2019, 327).…”

Section: Public Governancementioning

confidence: 99%

“…This emphasis is also seen in much of the emerging research on RVCs (Morris et al, 2016;Staritz & Morris 2017;Suder et al, 2015;Rugman et al, 2009). Recently, various scholars from across the GVCs, global production networks and international business fields have argued for a better understanding of the influence of public policy in shaping value chain dynamics (Coe et al, 2008;Horner & Alford, 2019;Van Assche, 2017). There is growing evidence, for example, that industrial, trade and labour policies have significant impacts on the geographies of GVCs (Curran et al, 2019;Whitfield et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Understanding regional value chains through the interaction of public and private governance: Insights from Southern Africa’s apparel sector

2020

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Regional value chains (RVCs) and South–South trade are increasingly considered key features of 21st-century globalisation. This article investigates how RVCs are shaped by the interaction of private and public governance. It evaluates how this interaction unfolded in Southern Africa’s apparel RVCs, exploring trade, investment and labour regimes across three levels of analysis: national, regional, and global. The paper draws on trade data, secondary literature, and interviews with suppliers and institutions in Eswatini and Lesotho (the largest exporters to the region), and lead firms in South Africa (the largest regional importer). The findings underline the critical role of public governance in shaping retailers’ and suppliers’ participation in RVCs through: (i) regional ‘trade regimes’ protecting regional exporters from global competitors, and recent shifts in global trade regimes; (ii) national and regional ‘investment regimes’ facilitating investment flows from South Africa to Lesotho and Eswatini, and the more recent shift of US-oriented suppliers towards regional markets; and (iii) ‘labour regimes’, including lower wages, less comprehensive labour legislation and weaker trade unions in Lesotho and Eswatini compared to South Africa. The article concludes by considering the policy implications of the interaction of private and public governance for existing and future RVCs in Sub-Saharan Africa.

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Public Procurement for Regional and Local Development

Carreira¹,

Peñate-Valentín²

2021

The Palgrave Encyclopedia of Urban and Regional Futures

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The roles of the state in global value chains

Cited by 54 publications

References 0 publications

What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies

Understanding regional value chains through the interaction of public and private governance: Insights from Southern Africa’s apparel sector

Public Procurement for Regional and Local Development

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