Global Value Chains Research Articles

The Impact of Global Value Chain Position on Emerging Industrial Cluster Innovation Efficiency in China

The Impact of Global Value Chain Position on Emerging Industrial Cluster Innovation Efficiency in China

A Novel Decomposition Framework for Agricultural Growth Accounting: A Global Supply Chain Perspective

ABSTRACTIn this article, we delve into the traditionally opaque total factor productivity (TFP) “black box” by dissecting it into its constituent elements—technology and efficiency—based on input–output variables from a global supply chain vantage point. Utilizing growth accounting methods, the article seeks to discern the variety of routes through which technology (frontier movement) and efficiency (catch‐up effects) propagate their effects on TFP. Our primary objective is to identify the most potent mechanism for fostering productivity enhancement, a task that previously eluded systematic examination. The methodology involves creating an empirical approximation of the agricultural production frontier from a selection of national data. Bounded‐adjusted linear programming techniques are subsequently employed to disentangle the observed TFP growth within the agricultural sector of each country into its technology and efficiency facets. It is important to note that this study also integrates resource and environmental footprints as additional input–output variables, quantified via the multi‐region input–output (MRIO) model. The analysis, spanning from 2000 to 2016, reveals that the most advanced nations demonstrate the most vigorous growth in agricultural productivity, with a global upward trend in agricultural productivity over the sampled years.

Dynamic linkages between element input structure, global value chain, and carbon emissions: evidence from a heterogeneous panel cointegration model

ABSTRACT Industrial CO2 constitutes a dominant component of global CO2 emissions. Therefore, modifications in industrial production processes are crucial. We analyse global cross-national panel datasets from 1995 to 2018 using the panel autoregressive distributed lag (ARDL) model to provide comprehensive evidence of the combined effects of input-side element structures and production-side global value chain (GVC) divisions on output-side CO2 emissions. The results show that: (i) Renewable energy and service elements in production factors can reduce CO2 emissions, though their abatement effects vary. Both can produce sustained carbon mitigation effects in the long term, but only renewable energy is effective in the short term. (ii) The GVC division pattern can induce a CO2 emission increase in both the short and long term, though these effects are heterogeneous depending on the differences in forward-backward GVC divisions. (iii) A path dependence analysis shows that input-side element structures can change production-side GVC divisions, thereby affecting output-side emissions. This study extends our understanding of the environmental effects of various production links and helps coordinate high-quality economic development and impending environmental constraints.

Advancements in Soybean Price Forecasting: Impact of AI and Critical Research Gaps in Global Markets

Soybeans, a vital source of protein for animal feed and an essential industrial raw material, are the most traded agricultural commodity worldwide. Accurate price forecasting is crucial for maintaining a resilient global food supply chain and has significant implications for agricultural economics and policymaking. This review examines over 100 soybean price forecast models published in the last decade, evaluating them based on the specific markets they target—futures or spot—while highlighting how differences between these markets influence critical model design decisions. The models are also classified into AI-powered and traditional categories, with an initial aim to conduct a statistical analysis comparing the performance of these two groups. This process unveiled a fundamental gap in best practices, particularly regarding the use of common benchmarks and standardised performance metrics, which limits the ability to make meaningful cross-study comparisons. Finally, this study underscores another important research gap: the lack of models forecasting soybean futures prices in Brazil, the world’s largest producer and exporter. These insights provide valuable guidance for researchers, market participants, and policymakers in agricultural economics.

Resilient supply chain operations following major disturbances: lessons from COVID-19 cases

Resilience has become a major concern to the global supply chain after the COVID-19 pandemic. Although the pandemic is hopefully tailing off, this study remains essential for future preparedness against major disruptions in global supply chain operations. This paper extends the Public-Health Corridors (PHC) concept from international travel coordination to global supply chain operations, with the underlying goals of reopening borders and alleviating social and financial burdens. Very little has been learnt from and very few guidelines are provided for developing PHC that recovers supply chain operations. This research fills this research gap by providing the architecture of PHC. Game-theoretical models with a strategic government-private-public-partnerships (G3P) mechanism are proposed to demonstrate how effective PHC can establish a new norm for social and economic activities under COVID-19 with minimal additional burdens. It offers theoretical evidence for possible approaches that facilitate effective stakeholder collaboration in launching PHC. Findings show that the implementation of basic PHC can resume supply chain operations through appropriate PHC measures and investments, while a well-designed G3P mechanism significantly bridges the gap between new norms and pre-pandemic conditions. A targeted subsidy programme is crucial for profitability, and well-crafted contracts are essential for achieving Pareto improvement and reducing required subsidies.

Regulatory design and interactions in worker‐driven social responsibility initiatives: The Dindigul Agreement

This article explores the rise of worker‐driven social responsibility (WSR) initiatives to combat labour and human rights abuse in global supply chains. We focus on the Dindigul Agreement, a pioneering WSR agreement initiated by an independent, majority Dalit trade union run by women in Dindigul, India, which seeks to address gender‐based violence in garment supply chains. Through key informant interviews and documentary analysis including coding in NVivo 12, we explore the establishment of the Dindigul Agreement, its distinctiveness in relation to other WSR agreements and its interactions with other supply chain governance tools.

Enhancing brewery logistics with smart kegs: A simulation study

Background: Supply chain optimisation is critical for companies in today’s globalised world. Efficient supply chains ensure product quality and freshness in the food industry. For products like beer, efficiency extends beyond transportation and includes the management of logistics containers such as returnable kegs.Objectives: This study investigated the impact of tracking logistics data on the efficiency of container logistics in a small regional brewery. The focus was reducing fleet size, processing times and pick-up distances.Method: A simulation of a small brewery was used to analyse the impact of tracking logistics data. The study examined how kegs equipped with real-time tracking technology could improve logistics operations.Results: The simulation showed that tracking logistics data significantly improved logistics processes. It led to a reduction in the fleet size, turnaround times and pick-up distances for empty kegs. These improvements were attributed to better resource allocation and more efficient management of reusable containers.Conclusion: The study showed that smart kegs could reduce logistical inefficiencies in the brewing industry. The use of smart technologies in container logistics improves operational efficiency and sustainability.Contribution: This research provides insights into how smart technologies can transform traditional logistics models. The results suggest that smart containers can revolutionise supply chains with efficient resource allocation, real-time tracking and automation. This shift towards smart logistics aligns with the broader adoption of the Industrial Internet of Things, offering a blueprint for future innovations in supply chain management. The implications extend beyond brewing, highlighting the potential for greater sustainability and a positive reduction in environmental impact in global supply chains.

The Global Value Chain, Corporate Compliance & Managing New Legal Risk

The Global Value Chain, Corporate Compliance & Managing New Legal Risk

Chinese infrastructure lending in Africa and participation in global value chains

Chinese infrastructure lending in Africa and participation in global value chains

Leveraging or Overcoming Distance? Global Strategy and Structure of Professional Services Firms

In this study, geographic distance is an instructional logic that influences the international strategy and structure of professional service firms (PSFs). By drawing on three governance modes—global value chains, virtual teams, and ecosystems—we identify eight governance structures in use by PSFs, resulting from reliance on one of two distance logics: distance-as-enabler and distance-as-barrier. When the logic of distance-as-enabler is prioritized, PSFs choose a structure that is more unified at the global level. When the logic of distance-as-barrier is upheld, PSFs give greater autonomy to local units or establish loosely connected regionally autonomous partnerships. By highlighting the co-evolution between professional governance and professional practice we further show that greater distance necessitates professional work to be more codified and modularized, while proximity preserves professional work's bespoke nature. We apply this framework to demonstrate how external environmental factors trigger firms to shift from one specific governance-practice form to another.

Integrating Blockchain and Homomorphic Encryption to Enhance Security and Privacy in Project Management and Combat Counterfeit Goods in Global Supply Chain Operations

The proliferation of counterfeit goods and data privacy concerns in global supply chain operations poses a significant risk to organizations and end-users alike. This paper explores the integration of blockchain technology and homomorphic encryption as dual mechanisms to enhance security and privacy in project management and supply chain operations. Blockchain offers an immutable, decentralized ledger that provides traceability and authenticity across supply chain nodes, while homomorphic encryption enables secure data processing and analysis without compromising sensitive information. The synergy of these technologies presents a robust framework to address counterfeit risks, facilitating end-to-end product authentication and allowing for secure, real-time collaboration in project management settings. This integration minimizes vulnerabilities in data handling and improves compliance with privacy regulations by securing data at rest and in transit. By evaluating case studies and recent advancements, this paper highlights the potential of blockchain and homomorphic encryption to redefine security protocols, fostering a trustworthy and resilient supply chain ecosystem. Future research directions are recommended to expand the practical applications and address scalability challenges associated with these emerging technologies.

Transformation of trading patterns in global agricultural markets

The article analyses the key aspects of changes in international agricultural trade patterns, with the main emphasis on the analysis of modern factors shaping the agricultural market situation. The analysis of international trade is conducted in the context of the need to ensure food security and counteract various exogenous shocks (decreasing crop yields, escalating geopolitical conflicts, food crises). This analysis has allowed us to formulate the main determinants that will have a decisive impact on international agricultural trade in the future. It has been established that as a result of international trade, global demand for agricultural land has decreased, and imports are increasingly used by developing countries to solve food security problems. It is shown that geopolitical restrictions and climatic shocks are a key factor influencing global supply chains and changing patterns of international trade in agricultural raw materials and food. The uncertainties that have arisen make it difficult to adequately forecast global flows of agricultural exports and imports, while the current agricultural policies of countries around the world remain virtually unchanged. In prospective studies of international agricultural trade, considerable attention should be paid to issues of supply stability.

An Algorithm for Consolidating Small Shipments to Reduce Costs in International Logistics for E-commerce Businesses

Purpose: This article presents an algorithm designed to optimize the consolidation of small shipments, aiming to reduce costs and improve efficiency in international logistics for e-commerce businesses. The research focuses on the highly trafficked route between China and the USA, particularly the corridor from Shenzhen to Los Angeles. Methodology: By employing a cluster-based optimization model, the algorithm consolidates goods from multiple e-commerce companies into single containers, maximizing space utilization and minimizing transportation costs. Findings: Experimental data reveals a 40% reduction in costs and a 10-day decrease in delivery times compared to traditional methods. Unique Contribution to Theory, Practice and Policy: The algorithm has the potential as a scalable solution for global supply chain logistics.

Non-trade issues in preferential trade agreements and global value chains

How do labor and environmental provisions (also known as non-trade issues) that are increasingly part of preferential trade agreements (PTAs) affect investment patterns within global value chains (GVCs)? In this article, we explore how the design of these provisions and the local regulatory environments of trading partners influence the geography of production. By employing a difference-in-difference analysis of quantitative data on the design of non-trade issues in 478 PTAs and mergers and acquisitions between 1948 and 2018, we assess the influence of labor and environmental provisions in PTAs on GVCs. Building on the legal and business studies literatures, we expect and empirically find that when countries join PTAs, enforceable non-trade clauses interact with domestic regulatory environments and induce changes in GVCs, especially in Global North hosts. Our findings provide nuance to our current understanding of the interconnections across trade agreement design, domestic regulations, and vertically integrated multinational production.

Global Trade Tensions: Analyzing the WTO Legality of the U.S. Inflation Reduction Act and Strategic Responses

With the profound changes in the global economic landscape and the increasing proximity of the United States and China in terms of power contrasts, the hegemonic anxiety of the U.S. has been increasing, leading to the adoption of a series of protection measures in the field of trade. Among them, the Inflation Reduction Act, as an important part of the U.S. trade protectionist policy, its implementation has not only aggravated the tension in international trade, but also violated the relevant rules of the World Trade Organization (WTO). This paper elaborates the specific content of the Act and its impact on international trade, especially its large-scale subsidy policy in the field of green energy and its potential impact on the global supply chain. Subsequently, this paper analyzes in depth the illegality of the Act under the WTO framework from the perspective of prohibited subsidies and non-discriminatory principles, and argues with specific cases. Finally, this paper puts forward China's response strategy, aiming to provide theoretical support and practical guidance for China in dealing with U.S. trade protectionist policies. The purpose of this paper is to reveal the nature and impact of the U.S. trade protectionism policy, to provide theoretical support for China to safeguard its legitimate rights and interests in global trade, and to provide useful reflections and insights for China to promote trade liberalization and facilitation, strengthen international cooperation, and jointly respond to challenges in the context of global economic integration.

Place-based regional planning: shaping governance, planning policy and practices in a South African region, 1994–2022

ABSTRACT The governance of regions is activated through actors and institutions representing diverse interests. Using place-based planning, this paper reviews local planning in South Africa drawing upon a case study of the iLembe District. We argue that region building is constructed through economic and political forces, currently blocked by poor relationships between the state, civil society, business, and inter-governmental complexities. The study uses empirical evidence on the regional conditions of the iLembe District and associated municipalities, reviews of planning documents and legislation, and interviews with key stakeholders. The authors argue that the local planning framework is ineffectual, lacking strategic direction, and primarily servicing provincial and nationally derived compliance requirements, rather than meeting strategic developmental objectives. Most recently, the global pandemic emphasized interlinked vulnerabilities and weak linkages associated with globalisation and sustainable development, particularly with global supply and value chains, health systems, settlement patterns, energy production and food security. We argue for a new form of collaborative regional planning and governance framework which could be laid through a “learning region” approach as identified in the place-based literature. An example is unlocking green energy production as a value addition to the established but crisis-laden sugar industry in the case study.

Effect of COVID-19 pandemic on household food insecurity: evidence from the United Arab Emirates

PurposeThe objective of this study was to measure the prevalence and severity of food insecurity in the United Arab Emirates (UAE) during May 2021 to June 2022, and to assess the impact of the COVID-19 pandemic on household food insecurity.Design/methodology/approachThis study measured the prevalence of household food insecurity in UAE during May 2021 to June 2022 by employing FAO’s Food Insecurity Experience Scale (FIES). The impact of the COVID-19 pandemic on household food security was evaluated by employing a truncated regression model, using survey data from 504 respondents.FindingsAbout 34% of the households were found to be food secure. About 22% of them experienced moderate or severe food insecurity (i.e. have eaten less than they thought should have) whereas almost none have experienced severe food insecurity during the sample period. The truncated model results show that households’ region of residence, livelihood source, education level, income and number of elderlies have a significant association with the probability of experiencing food insecurity. The pandemic-induced unemployment and disruptions in physical access to food positively associated with the probability of experiencing food insecurity.Social implicationsIt is critical to regularly monitor households’ food security status, and design strategies that explicitly consider the food security status of UAE’s significant expat population; most of whom are migrant manual labourers earning low wages, are less job-secured and have poorer access to health care.Originality/valueAlthough several studies assessed the impact of the pandemic on food security in different countries, there is a lack of studies assessing the impact of the pandemic on food security in the import-dependent Gulf Cooperation Council (GCC) countries, whose food security might be severely impacted due to the COVID-19-induced global food supply chain disruptions. Our application of the truncated regression model also contributes to the food security literature.

Income and Jobs from Global Value Chain Participation by Developing Asian Economies

Income and Jobs from Global Value Chain Participation by Developing Asian Economies

Emergence of global value chains as key driver behind industrial development: evidence from participating African countries

Purpose The purpose of this paper is to examine the role of global value chains (GVC) in industrial development of emerging economies, with particular focus on participating African countries. The findings of this study are expected to provide insight on the need for more developing countries to participate in GVC. Design/methodology/approach This study is built upon the neoclassical and endogenous growth theories, which postulate that savings, physical capital and human capital are the fundamental drivers of development in productive sectors of the economy. The investigation, covering the period 1980–2021, is carried out by using the unrestricted error correction model and dynamic ordinary least squares model. Findings The results of this study reveal that GVC stands as the dominant factor driving industrial development, compared to savings, physical capital and human capital. The findings, therefore, seem to contradict the postulation of conventional theories. The policy implications of the findings are not far-fetched. First, industrial development in the participating African countries has benefited largely from GVC; hence, it is necessary to encourage more participation. Second, industrial development also benefited from the control variables (savings, physical capital and human capital), hence the need to sustain their complementary role. Thirdly, only three African countries are actively participating in GVC, which suggests that more countries need to join, to facilitate industrial development. Originality/value Previous studies have not given adequate attention to African countries that participate in GVC, thus creating a void that needs to be filled. This study, therefore, produced results that are relevant to policy-making on industrial development in African countries.

The essence and characteristics of global value chains: theoretical aspect

The article carries out a comparative analysis of scientific approaches to understanding the essence of global value chains, as a result of which the author’s position on this issue is substantiated. It has been established that the territorial organization of international business and the international division of labor form the conceptual basis of the formation of global value chains. Special attention is paid to how processes of global economic integration contribute to constant modifications of value chains, as well as the importance of their effective management, which is a decisive factor in increasing the competitiveness of companies and countries. The article argues that participation in global value chains provides businesses and governments with significant benefits, such as access to new markets, increased production efficiency, and increased value added. At the same time, risks have been identified, in particular those related to the instability of supply chains, increased competition and dependence on global markets. Different types of global value chains and features of their management in the conditions of modern challenges of globalization are considered. Conclusions have been made regarding the prospects for the development of Ukrainian business based on the concept of global value chains, taking into account global trends and national features of the economy. The article is useful for scientists, specialists in the field of international business and economics, as well as for those who are interested in the integration of national economies into global production processes. A comparative analysis of the positions of modern scientists regarding the essence of global value chains was carried out. Reasoned author’s position on the issue of the essence of global value chains. It has been established that the territorial organization of international business, as well as the international division of labor, is the conceptual basis for the formation of global value chains. It is argued that in the conditions of strengthening integration processes in the global economy, constant modifications of global value chains take place, and their management becomes one of the important factors of competitiveness. The benefits that business units and countries receive from participating in global value chains are determined, and the associated risks are also identified. The typology of global value chains, features of their management are analyzed. Conclusions have been made regarding the prospects for domestic business development based on the concept of global value chains.