Global Value Research Articles

Exchange rate and corporate investment: Heterogeneous effects via the global value chain networks

This study analyzes how exchange rates affect corporate investment by scrutinizing firms' global value chain (GVC) networks. A salient feature of our analysis is that we adopt novel GVC datasets and methodologies to construct upstream- and downstream-specific exchange rates. We couple these GVC-integrated real exchange rates with global firm-level data and document that unfavorable exchange rate movements hinder operating performance and, therefore, corporate investment, especially among financially constrained firms. We use two large currency shocks in Brazil and Sweden to provide causal evidence. The results highlight nonnegligible frictions of how GVC-integrated real exchange rates affect corporate investment.

Hybrid organisations embedded in resource-poor contexts: linking organisational capabilities and individual capabilities – a slippery ground?

PurposeThis paper aims to contribute to research on hybrid organisations operating within the information and communication technology for development paradigm to foster socio-economic inclusion through the capacity building of marginalised individual youth to enable their entry and participation in the formal labour market.Design/methodology/approachUsing a qualitative research design, the authors investigated impact sourcing service providers and their beneficiaries to unpack how hybrid organisations fulfil their social mission and to provide a nuanced understanding of their needed capabilities. Data triangulation through document analysis, participant observation and semi-structured interviews were conducted for the empirical findings’ robustness and in-depth analysis.FindingsThis paper illuminates how hybrids strived to build beneficiaries' capabilities through empirically grounded approaches of “standardised” and “individualised” skills development, which were strongly connected to the perceived capabilities among the beneficiaries. Organisations that practiced the “individualised” approach imparted technical knowledge and, depending on individual needs, relevant social skills. Critically, the empirical findings call into question the effectiveness of the scalability model, as the results showed that the creation of standardised, low-skilled and low-paid jobs contradicts the idealised self-help status that employment advocates. In addition, the findings underline the central role of constant experimentation, resilience and organisational learning in revamping capabilities of hybrid organisations. Remarkably, compared to organisations committed to the “standardised” technical competency path, the results underscored the difficulties that organisations taking an “individualised" approach face in developing organisational capabilities for their financial sustainability. Further, organisations engaged in standardised” skills development were found to readapt their business model to the economic value and kept the wording of dual mission as a narrative.Originality/valueThe paper makes a conceptual and empirical contribution bringing together two separately developed literature strands – the organisational capability approach and – the individual capability approach, to enhance a more profound understanding of how both capabilities are connected to each other in the dual-mission orientation of hybrids embedded in resource-poor environments, global value chains, Global South, hybrid organisations, organisational and individual capability building.

New Emerging Industries and Alternative Pathways into Global Value Chains: the Case of Estonian Automated Mobility and Delivery Industry

New Emerging Industries and Alternative Pathways into Global Value Chains: the Case of Estonian Automated Mobility and Delivery Industry

Global value chains and carbon emission efficiency: evidence from 30 provinces in China

ABSTRACT The severity of global environmental change is a growing issue, primarily as an obvious result of carbon dioxide emissions. This article aims to recognize the causal relationship between Global Value Chains (GVCs) and Carbon Emission Efficiency (CEE) by using 30 provinces from 2000 to 2014 in China. This study calculates the GVCs level in the provincial level considering general trade, process trade, and intermediate trade agents; Besides, a model for the slacks-based measure of super-efficiency in data envelopment analysis (SBM-DEA) was used to measure the CEE. By applying fixed effect model techniques, our estimates reveal critical findings. First, we confirm the existence of the spatial-temporal evolution pattern of CEE in 30 provinces, showing an increased trend and noticeable east-west difference. Second, the econometric results suggest that the GVCs involvement is beneficiary for the CEE. Third, our results confirm that technological innovation and environmental regulation effects contribute to GVCs’ influence on CEE. These findings contribute to the formulation of appropriate carbon policies by the Chinese government, thereby advancing the objective of achieving carbon peaking by 2030 and carbon neutrality by 2050.

The digital trade advantage: investigating the impact on global value chain positions in manufacturing and service industries

ABSTRACT This study investigates the impact of digital trade on global value chain (GVC) positions across industries and countries from 2007–2018. A newly developed digital trade level index measures various dimensions including digital infrastructure, industrial digital trade, e-commerce industrialization, and trade potential. Results show that digital trade significantly enhances GVC positioning, with trade potential having the strongest effect. The study also finds that digital trade drives GVC upgrading by optimizing industrial structures. Developed countries experience greater impacts of digital trade on GVC positions compared to developing nations, highlighting country heterogeneity. Industry differences are also observed, with medium-low tech manufacturing and transportation and warehousing services being most influenced by digital trade. The study uncovers industrial structure upgrading as a key mechanism through which digital trade improves GVC positions, though the industrial digital trade dimension somewhat impedes this effect. Based on these findings, the study provides policy insights for developing countries to harness digital trade for GVC upgrading, such as increasing investments in susceptible industries, fostering domestic and global digital ecosystems, promoting efficient resource allocation, and supporting digital integration in medium-low tech manufacturing.

Asymmetric effects of GVC on poverty in ASEAN and OECD

PurposeThis study aims to analyze the relationship between global value chain (GVC) participation and poverty levels. Additionally, it investigates the impact of education levels, specifically analyzing literacy rates and tertiary education rates, on the correlation between GVC participation and poverty in Organization for Economic Co-operation and Development (OECD) and Association of Southeast Asian Nations (ASEAN) countries.Design/methodology/approachFixed effect and random effect models will be employed to quantify the relationships between the dependent and independent variables. The Hausman test is applied to determine the appropriate estimator between fixed and random effects. Also, in the model, time-fixed effect or two-way fixed effect has been used to control for unobserved heterogeneity both across entities and over time in panel data analysis.FindingsThe findings demonstrate that engagement in GVCs presents a promising avenue for stimulating development, advancing income per capita growth and facilitating job creation. Notably, the results illuminate that the poverty-alleviating impacts of GVC participation are most conspicuous in nations boasting elevated levels of educational attainment among their populace.Originality/valueThis research aims to promote a better understanding of the connection between GVC participation and the level of poverty, with GVC participation decomposed into forward participation and backward participation.

Dissolved organic carbon (DOC) and labile organic compounds' spatial and temporal variations in coastal Indian groundwater: their bioavailability and transfer to neighboring coastal waters of India.

Submarine groundwater drainage (SGD) changes the elemental composition of the neighboring coastal ocean and impacts the biogeochemical cycles. To examine the seasonal and spatial variability in dissolved organic carbon (DOC) and labile organic compound biochemical compounds like dissolved carbohydrates (TDCHO), dissolved proteins (TDPRO), and dissolved free amino acid (TDFAA) concentrations during the dry and wet periods, groundwater samples were taken at 90 locations (180 samples) along the Indian coast. The mean DOC contents in Indian coastal groundwaters were more significant than the global mean values. DOC, TDCHO, TDPRO, and TDFAA concentrations are higher during wet than dry periods. The DOC and labile organic compound showed a substantial positive association with soil organic carbon, and respective labile compounds in soil, population, and land usage and poor relation with woodland territories, implying that soil organic compounds leaching is a source of DOC and other labile organic compounds into the groundwater. DOC and other labile compounds concentrations were linearly associated with population density, land usage, and sewage production, demonstrating that anthropogenic activities tightly regulate the formation of DOC in groundwater. During the wet and dry periods, total labile organic compounds (TDCHO, TDFAA, and TDPRO) constituted 21% and 10.5% of DOC, respectively. Compared to the wet time, more aromatic compounds accumulated during the dry season but were less bioavailable. SGD DOC flux contributed 2-7% of riverine DOC flux to the coastal ocean. The SGD flux from the Indian subcontinent to the nearby northern Indian Ocean accounts for approximately 2% of the worldwide SGD flux. The effect of DOC flux via SGD on coastal bacterial activity, the plankton food web, and the oxygen minimum zone must be studied.

Beyond simplistic narratives: Dynamic farmers, precarity and the politics of agribusiness expansion

AbstractAgribusiness expansion is usually framed around two competing narratives. On the one hand, advocates present it as a promising vehicle to modernise agriculture and integrate small farmers into global value chains. On the other hand, critics denounce it as a top‐down corporate assault to monopolise agriculture and dispossess peasants of land. Despite their differences, these contrasting narratives tend to share a reductionistic capital‐centric bias as they are mainly focused on the alleged benefits/dangers of the ‘arrival’ of agribusiness corporate capital. Although simplistic, these narratives have been politically effective in shaping the public debate and thus should be exposed to critical challenge. Drawing on my ethnographic research in eastern lowland Bolivia, I show how both narratives fail to capture the complexity of an actually existing agribusiness structure. My grounded analysis of the process of agrarian change focuses on the changing labour dynamics among campesinos who have striven to become prosperous soy producers. Faced with bleak prospects and structural insecurity, they have been articulating a political practice around the notion of precarity. I argue that this emerging politics from below deserves more attention as an important terrain of political struggles of classes of labour.

Global arms exports : the formation of a new paradigm

The modern world market for arms and military equipment (WME) is experiencing a whole range of structural and dynamic changes caused by numerous global problems in the development of the world economy, the nature of competition in this market, as well as the formation of a multipolar world order. The purpose of the study was to assess possible changes in the long-term program of research on international trade in arms and military equipment, taking into account the specified triggers. As the research has shown, the political economy of global arms and military equipment exports is undergoing a significant transformation when, with the emergence of new players in the global arms and military equipment market, its qualitative characteristics and development parameters change, unconventionally affecting global demand and supply for weapons. In turn, the dynamics of defense spending have an ambiguous impact on the market under study, which can both crowd out investments in other sectors and affect the economic growth of the country and its position in global arms and military equipment exports. Finally, the global arms and military equipment market is witnessing serious and previously unknown changes in the global architecture of multilateral regulation, which determine the formation of global value chains within the framework of military-political blocs. These transformations lead to a new understanding of international cooperation between countries exporting and importing weapons and military equipment and form a new set of research problems.

Global and regional cardiac magnetic resonance feature tracking left ventricular strain analysis in assessing early myocardial disease in β thalassemia major patients

BackgroundCardiac magnetic resonance imaging (CMR) is the modality of choice for quantification of myocardial iron overload in β-thalassemia major patients using the T2* sequence. CMR feature tracking (FT) is a recent magnetic resonance imaging tool that gives an idea about myocardial fibers deformation; thus, it can detect early impairment in myocardial function even before the reduction in ejection fraction.MethodsThis study aims to assess the ability of left ventricular CMR-FT in the early detection of systolic dysfunction in β thalassemia major patients and to correlate it with the degree of myocardial iron overload measured by CMR T2*. This prospective study enrolled 57 β thalassemia major patients who received long-term blood transfusion and 20 healthy controls. CMR was used to evaluate left ventricular volumes, ejection fraction, and the amount of myocardial T2*. A two-dimensional left ventricular FT analysis was performed. Both global and segmental left ventricular strain values were obtained.ResultsThe mean global circumferential strain (GCS) and global radial strain (GRS) values were significantly lower in patients compared to control (P = 0.002 and P = 0.006, respectively). No correlation was found between T2* values and ejection fraction; however, there was a significant correlation between T2* values and GCS and GRS (P = 0.012 and P = 0.025, respectively) in thalassemia patients. Regional strain revealed significantly lower values of GCS and GRS in basal regions compared to apical ones (P = 0.000).ConclusionsOur study revealed that CMR-FT can play a role in the early detection of systolic impairment in thalassemia patients.

Mandatory due diligence legislation: a paradigm shift for the governance of sustainability in global value chains?

Mandatory due diligence legislation: a paradigm shift for the governance of sustainability in global value chains?

Advanced myocardial deformation echocardiography for evaluation of the athlete's heart: Functional and mechanistic analysis

BackgroundAssessment of the athlete's heart is challenging because of a phenotypic overlap between reactive physiological adaptation and pathological remodelling. The potential value of myocardial deformation remains controversial in identifying early cardiomyopathy. AimTo identify the echocardiographic phenotype of athletes using advanced two-dimensional speckle tracking imaging, and to define predictive factors of subtle left ventricular systolic dysfunction. MethodsIn total, 191 healthy male athletes who underwent a preparticipation medical evaluation at Nancy University Hospital between 2013 and 2020 were included. Clinical and echocardiographic data were compared with 161 healthy male subjects from the STANISLAS cohort. Borderline global longitudinal strain value was defined as<17.5%. ResultsAthletes demonstrated lower left ventricular ejection fraction (57.9±5.3% vs. 62.6±6.4%; P<0.01) and lower global longitudinal strain (17.5±2.2% vs. 21.1±2.1%; P<0.01). No significant differences were found between athletes with and without a borderline global longitudinal strain value regarding clinical characteristics, structural echocardiographic features and exercise capacity. A borderline global longitudinal strain value was associated with a lower endocardial global longitudinal strain (18.8±1.2% vs. 22.7±1.9%; P=0.02), a lower epicardial global longitudinal strain (14.0±1.1% vs. 16.6±1.2%; P<0.01) and a higher endocardial/epicardial global longitudinal strain ratio (1.36±0.07 vs. 1.32±0.06; P<0.01). No significant difference was found regarding mechanical dispersion (P=0.46). ConclusionsBorderline global longitudinal strain value in athletes does not appear to be related to structural remodelling, mechanical dispersion or exercise capacity. The athlete's heart is characterized by a specific myocardial deformation pattern with a more pronounced epicardial layer strain impairment.

Global food value chains and obesity in low- and middle-income countries

Low- and middle-income countries (LMICs) are experiencing disproportional increases in overweight or obesity rates. Parallel to this trend, many LMICs are witnessing significant growth in their participation in global food value chains (GFVCs). This paper aims to shed light on the public health implications of increasing participation in GFVCs. Leveraging macro- and micro-level data spanning 25 years, we study the relationship between countries’ participation in GFVCs and women’s overweight or obesity rates. We explore heterogeneous implications by disaggregating countries’ participation into backward and forward linkages in GFVCs, as well as across rural and urban areas. We find that temporal increases in countries’ participation in GFVCs are significantly associated with increasing overweight or obesity rates, primarily when countries participate in backward linkages and for urban populations. Participation in GFVCs involving forward linkages appears to have negligible implications, and the relationship between participation in GFVCs and obesity disappears for rural women. Furthermore, we find that an increase in countries’ participation in GFVCs is associated with an increase in consumption of energy-dense foods such as sugar, commonly linked with obesity. Our findings have important implications for informing public policies aimed at addressing the increasing obesity rates and associated economic and health burdens in LMICs.

Composite Pulmonary Embolism Shock Score and Risk of Adverse Outcomes in Patients With Pulmonary Embolism.

In hemodynamically stable patients with acute pulmonary embolism (PE), the Composite Pulmonary Embolism Shock (CPES) score predicts normotensive shock. However, it is unknown if CPES predicts adverse clinical outcomes. The objective of this study was to determine whether the CPES score predicts in-hospital mortality, resuscitated cardiac arrest, or hemodynamic deterioration. Patients with acute intermediate-risk PE admitted from October 2016 to July 2019 were included. CPES was calculated for each patient. The primary outcome was a composite of in-hospital mortality, resuscitated cardiac arrest, or hemodynamic decompensation. Secondary outcomes included individual components of the primary outcome. The association of CPES with primary and secondary outcomes was evaluated. Among the 207 patients with intermediate-risk PE (64.7% with intermediate-high risk PE), 29 (14%) patients had a primary outcome event. In a multivariable model, a higher CPES score was associated with a worse primary composite outcome (adjusted hazard ratio [aHR], 1.81 [95% CI, 1.29-2.54]; P=0.001). Moreover, a higher CPES score predicted death (aHR, 1.76 [95% CI, 1.04-2.96]; P=0.033), resuscitated cardiac arrest (aHR, 1.99 [95% CI, 1.17-3.38]; P=0.011), and hemodynamic decompensation (aHR, 1.96 [95% CI, 1.34-2.89]; P=0.001). A high CPES score (≥3) was associated with the worse primary outcome when compared with patients with a low CPES score (22% versus 2.4%; P=0.003; aHR, 6.48 [95% CI, 1.49-28.04]; P=0.012). CPES score provided incremental prognostic value for the prediction of primary outcome over baseline demographics and European Society of Cardiology intermediate-risk subcategories (global Χ2 value increased from 0.63 to 1.39 to 13.69; P=0.005). In patients with acute intermediate-risk PE, the CPES score effectively risk stratifies and prognosticates patients for the prediction of clinical events and provides incremental value over baseline demographics and European Society of Cardiology intermediate-risk subcategories.

Instructional Materials for Etiquette Due to the Politeness Crisis in Gen-Z

Rapid social and technological change, which has changed the way of social interaction and communication between generations. Generation Z, who grew up in the digital era, is often more exposed to global values and different cultures through social media and the internet. The modesty crisis is being experienced by most of generation Z. This fact arouses researchers' curiosity to solve this problem. This research is R&amp;D research using the ADDIE design. Researchers designed and developed syllabi, lesson plans and teaching materials about character and included them in the Aqidah Akhlak course. These products are implemented on one campus. After that, researchers evaluated product use through questionnaires and tests. The subjects in this research are generation Z. The research results are valid, practical and effective in reintroducing and instilling good manners in students. The implications of this research are The findings of this research can encourage the development of a curriculum that is more integrated with etiquette values, so that schools and educational institutions can teach ethics and manners more effectively. The aim of research on Instructional Materials for Manners due to the Politeness Crisis in Gen-Z is to identify and understand the factors that cause a decline in politeness among the younger generation and develop effective learning materials to overcome this problem.

Robust policy frameworks for strengthening the resilience and sustainability of agri-food global value chains

Agri-food global value chains (GVCs) have transformed food production and trade, fostering efficiency and specialization across international borders and also introducing new challenges. This paper synthesizes insights from a special issue focused on agri-food GVCs, addressing four critical areas essential for enhancing the resilience and sustainability of these chains. We explore how trade connections and specialization can drive economic growth, emphasizing the importance of GVC integration. We also examine the role of transportation and infrastructure in ensuring global trade efficiency, highlighting the need for strategic investments to support robust supply chains. Additionally, we assess the impact of trade policies on sustainability, market disruptions, and overall efficiency, underscoring the importance of regulatory frameworks that promote both economic and environmental goals. Finally, we consider the implications of domestic and trade policies on welfare and equity, particularly in developing regions where inclusive growth remains a pressing concern. By identifying these essential areas for robust policy frameworks, this paper provides actionable insights for enhancing the resilience and sustainability of the global food system, which can inform policies that enhance the benefits of agri-food GVC integration while mitigating their risks.

Digitalization and Global Value Chain Participation: Evidence from Spanish Manufacturing Firms

Digitalization and Global Value Chain Participation: Evidence from Spanish Manufacturing Firms

Coffee sustainability: leveraging collaborative breeding for variety improvement

The sustainability of global coffee supply is threatened by production challenges worsening with every decade since the turn of the 21st century. Coffee is among the most popular beverages in the world, and its production supports livelihoods of millions of people, mostly smallholder farmers. With a global market value exceeding US$130 billion, the coffee industry is a source of export revenue for producing countries, the majority of which are developing nations in the Global South. Climate change, pests, and diseases continue to hamper productivity, profitability, and countries’ competitiveness in the global market. At the same time, the global demand for coffee continues to rise. A crucial pillar to safeguarding the future of coffee is continuously developing improved varieties suitable for the changing environment, and that address the needs of farmers and the industry. Yet, most national breeding programs are grossly out of touch with climate change reality and market dynamics. Working in isolation, these programs are constrained by unstable funding, limited sources of genetic variability, and inaccessibility of modern technologies necessary to accelerate the breeding process. We review here key production challenges, status of genetic diversity, and breeding approaches. Additionally, we explore opportunities in leveraging a pre-competitive collaborative breeding approach encompassing sharing of germplasm, and cross-border multi-environment trials in developing next-generation cultivars. We argue that breeding efforts should be informed by the needs of all the stakeholders in the supply chain including researchers, smallholder farmers, small and medium-sized enterprises investing in coffee processing and roasting, and consumers. Using emerging and reviving producers in Southeast Asia and Eastern Africa as a model, we explore how a paradigm shift in coffee breeding from the historically nation-centric approach to a more forward-looking collaborative model could improve the efficiency of variety improvement in face of climate change and growing market demand.

Value chain management practices and value creation in sub-Saharan African apparel firms

Purpose: This study explores value chain management (VCM) practices in the sub-Saharan African apparel industry, developing a strategic framework to enhance value creation.Design/methodology/approach: A quantitative research design was adopted, surveying 430 managers across the apparel value chain. Data were analysed using factor, correlation, and regression analyses to ascertain the impact of VCM practices on value creation. However, it is essential to notice that the study’s findings are limited to the sub-Saharan African context and may not directly apply to other regions.Findings/results: The analysis revealed a strong correlation between specific VCM practices, such as information sharing, incentive realignment, agile manufacturing, and value creation. These practices help firms to navigate the industry’s complexities and leverage regional opportunities.Practical implications: The study provides a valuable framework for managers, highlighting customer-centricity and strategic sourcing strategies. These strategies are crucial for enhancing operational efficiency and competitive positioning in the global market.Originality/value: The study offers original insights by empirically validating VCM practices and their contribution to value creation within the sub-Saharan apparel sector. The strategic framework fills a gap in the literature and aids the sector’s integration into the global value chain.

Export Diversification, Quality and Global Value Chain: A Cross-country Analysis

This paper critically examines the impact of countries’ participation and positions in Global Value Chains (GVCs) on their export diversification and quality for 43 G20 and OECD countries over the period 1990–2015. GMM dynamic panel estimation reveals that deeper GVC integration significantly influences export structures, with countries positioned downstream in the value chain exhibiting more diversified exports (overall and at the intensive margin) but have concentrated exports at the extensive margin and geographically. Conversely, upstream, more factor-based GVC activities tend to result in less diversified export portfolios. Greater GVC participation leads to a more diversified export product basket but more concentrated export destinations in terms of the Hirschman index. However, the association between export diversification and GVC participation varies across measures of diversification and country’s level of economic development. We further find that countries and sectors having larger export share in downstream of the supply chain and have a lower extent of GVC participation, export quality differentiated product. These outcomes suggest that GVC participation and position play crucial roles in shaping national export strategies and economic resilience, with downstream activities offering pathways to enhanced export diversification and quality improvement. The study contributes to the understanding of how global production fragmentation impacts the complexity and sophistication of countries’ export baskets. The outcomes provide guidance for policymakers to strategically leverage GVC engagement to foster export diversification, quality improvement and economic resilience.