Global Value Research Articles

Spatio-temporal evolution and driving mechanism of metal value flow networks: A global value chain perspective

The lengthening of the global value chain (GVC) and the deepening of the transnational labor division system have led to frequent cross-border flows of metal values worldwide, and the pattern of the international metal trade is facing reconstruction. This paper combines a new trade accounting framework and a complex network model to construct global metal domestic value added (DVA) and foreign value added (FVA) flow networks based on global multi-regional input‒output (MRIO) tables for 2000 and 2007–2022 and then analyzes their structural topological features and spatio-temporal evolution trends at the macro, medium, and micro levels. Then, the main driving factors are investigated using the exponential random graph model (ERGM). The results show that the DVA and FVA networks are expanding and have obvious aggregation effects and small-world characteristics, that the community divisions show a trend toward regional integration and worldwide multipolarity, and that Germany is the most important transportation hub and trade medium in the FVA network, while China and the United States are, respectively, the largest creator and consumer of the world's metal value flow. In addition, the DVA network is more susceptible to node attribute effects such as GDP, trade openness, population size and foreign direct investment, while the FVA network is more susceptible to exogenous network effects such as geographic distance and colonial ties.

Can de-risking avert supply chain precarity in the face of China-U.S. geopolitical tensions? From sanctions to semiconductor resilience and national security

As a main driver of geoeconomic power, technological supremacy is at stake in the current zero-sum tech war between the U.S. and China. Semiconductor chips have become an emerging geopolitical frontier in the rivalry of the two powers. Since the confrontation has intensified, the U.S. seeks to weaponise its dominant position in the global semiconductor value chain (GSVC). Some industrial policy-driven geostrategic approaches inform the race to reduce the GSVC vulnerabilities. The tit for tat nature of sanctions risks making multilateralism decline and further undermining the effectiveness of the global governance regime. Shifts in rising economic competition highlight the constraints on collective action. It remains critical as to whether the international economic and legal system can survive the current fractured geopolitics, and whether the new thinking on global governance could be viable for a non-zero-sum game.

RETRACTED: Decarbonizing progress: Exploring the nexus of renewable energy, digital economy, and economic development in South American countries

Examining the relationship between green energy, the digital economy, and economic advancement in eighteen South American nations, the study used the Principal Component Factor (PCF) approach. A Green Energy Transition Index (GETI) and a Digital Economy Index (DEI) were developed as a consequence of this study. Confirmation of the large influence of switching to green energy on economic development and environmental sustainability is provided by the research's use of Fixed Effect Panel Threshold Regression (FEPTR) analysis. In today's global industrial value chain, hydrocarbons are the main source of energy. As a result, it hastened the decarburization of the world energy system to lower the noteworthy quantities of CO2 emissions from these sources. All quantile groups' economic development is strongly impacted by the digital economy and the move to green energy, according to the Methodology of instants of quantile regression (MMQR). The only element that positively impacts environmental sustainability across all quantile groups is the switch to Green energy. Reducing CO2 emissions and increasing economic development are characteristics of the low-quantile group. While the median quantile group does see a decrease in carbon dioxide emissions, economic growth remains stagnant.

Determination of Natural Radioactivity Levels and Radiation Hazards from the Soil of Tin Mining in Kyerwa District, Tanzania

Gamma spectrometry was used to determine the activity concentrations of the natural radionuclides 226Ra, 232Th, and 40K in soil samples from the Tin mining in Kyerwa District, Tanzania. The study findings revealed that the mean activity concentrations of 226Ra, 232Th, and 40K were 90.68, 65.45, and 630.95 Bq/kg, respectively. These values were all greater than the average global activity concentrations for 226Ra, 232Th, and 40K which are 32 Bq/kg, 45 Bq/kg, and 420 Bq/kg, respectively. Assessments of the radiological risks associated with these naturally occurring radionuclides were done. In this case, the radium equivalent activity (Raeq), external hazard index (Hex), internal hazard index (Hin), and radioactivity level index (Iγ) were calculated. The results show that the mean values of Raeq, Hex, Hin, and Iγ were 230.6 Bq/kg, 0.628, 0.861, and 0.831, respectively. These results were below the global criteria levels for Raeq, Hex, Hin, and Iγ, which are 370 Bq/kg, 1, 1, and 2, respectively. Estimates for the absorbed dose rate in the air (DR), the annual effective dose equivalent (AEDE), and the annual gonadal equivalent dose (AGED) were also made. The findings revealed that the corresponding mean values for DR, AEDE, and AGED were 106.8 nGy/h, 1.07 mSv/y, and 744.4 μSvy-1. The mean values exceeded the global average value of 57 nGy/h for DR, 0.07 mSv/y for AEDE, and 2984 Sv/y for AGED. Therefore, Tin mining activities in the Kyerwa District could endanger the mining community from natural radioactive sources. In this study, therefore, we recommend performing a periodic inspection of the mining areas, monitoring the mining workers, and determining the level of activity and concentrations of different radionuclides in the mining area.

Человеческий капитал в теории и практике экономического роста (на примере Мурманской области)

Russia’s Arctic policy focuses on making large-scale progress in the Arctic’s social and economic domains, including the development of local natural resources and the Northern Sea Route and the establishment of high-tech centers that can create global value chains. One of the primary challenges and threats to the sustainable development of the Russian Arctic regions is the mismatch between regional higher education systems and the needs of the economy. The risks are significantly exacerbated by the global economic transformation and the advent of the Fourth Industrial Revolution. Therefore, when considering the prospects for the innovation-driven development of the Arctic’s economy, a critical issue is the accumulation of highly educated human capital, where higher education plays a key role. The article explores the issues surrounding the formation and accumulation of human capital from the perspective of regional economic growth. The goal of this work is to empirically test the theory of increasing returns on investments in education. The key premise is that human capital accumulation has constant returns and can therefore grow indefinitely. This made it possible to put forward the hypothesis that the better the population’s access to higher education, the bigger the human capital and, accordingly, the higher the growth of gross output per capita. An empirical assessment was conducted to check the test model of the influence of university enrollment rates on economic growth. The results indicated a high coefficient of determination from the regression of the time series of the studied indicators. Also, the model showed the presence of conditional convergence, which means that a decrease in university enrollment rates is compensated for by an increase in the return on human capital due to an increase in the quality of education.

Global Value Chain, GVC、biased technological change and reginal total factor productivity differences

We discuss the link between global value chains (GVC) and the widening differences in total factor productivity (TFP) across regions. Firstly, the empirical evidence from China indicates that differences in technological bias may be a vital factor in TFP differences. Further, we test the connection between GVC and regional TFP differences, providing a new explanation from the perspective of technological bias. Due to different speeds of factors mobility, GVC can intensify regional factor cost disparities, thereby expanding technological bias differences. As a result, it impedes regional TFP convergence. Finally, we have tested the above mechanism using data from China.

Financial Sector Liberalisation and the Climbing of Manufacturing GVCs

The National 14th Five-Year Plan and 2035 Vision Outline emphasise the need to promote the integration of China's manufacturing industry and service industry, so as to achieve the upgrading of China's manufacturing industry to the high end of the global value chain. Based on the OCED input-output data and the World Bank STRD data, the study empirically explores the impact of financial sector openness on the upgrading of the manufacturing industry's global value chain by using the global multiregional input-output model and the panel model. The study finds that both the quantity and quality of financial sector openness have a significant effect on the upgrading of manufacturing GVCs, with the quality of financial sector openness having a more pronounced effect, and this conclusion still holds after considering robustness; accordingly, it puts forward policy recommendations for financial sector openness to promote the upgrading of manufacturing GVCs.

IMPACT OF THE WAR ON UKRAINE'S INVESTMENT CLIMATE: RISK ASSESSMENT AND PROSPECTS FOR FOREIGN INVESTORS

The article is devoted to a comprehensive analysis of the impact of the Russian-Ukrainian war on the investment climate in Ukraine. Based on current statistical data and expert assessments, the main risks for foreign investors caused by military actions on the country's territory are identified. Among them are: large-scale destruction of critical infrastructure, disruption of established logistics chains, a rapid decline in the purchasing power of the population, as well as a high level of uncertainty regarding the further course and duration of the armed conflict. At the same time, the author considers the potential prospects for restoring the investment attractiveness of Ukraine in the conditions of post-war reconstruction. Special emphasis is placed on forecasting the likely dynamics and sectoral structure of foreign investment in the Ukrainian economy starting from 2025, based on the assumption of the completion of the active phase of hostilities. Based on the identified competitive advantages of Ukraine, a set of measures is proposed to improve the national investment environment in the medium and long term. They include ensuring macroeconomic stability, carrying out structural reforms of the regulatory and judicial systems, strengthening the institutional protection of investors' rights, as well as attracting large-scale financial and technical assistance from international partners. At the same time, the author emphasizes the critical importance of forming a holistic strategic vision for the development of Ukraine as a competitive and investment-attractive state in the long-term horizon, which requires the implementation of a targeted policy to stimulate innovation, build modern infrastructure and integrate into global value chains. The article also analyzes the experience of other countries that have suffered significant economic losses due to military conflicts, and highlights the most effective strategies for restoring investment attractiveness in post-war reconstruction. In particular, successful examples of attracting foreign investment in the countries of the Balkan region and Southeast Asia, which managed to quickly overcome the consequences of armed confrontations and ensure sustainable economic growth, are considered. Based on this experience, the author proposes to adapt best practices to Ukrainian realities, taking into account the specifics of the national institutional environment and geopolitical context. Special attention is paid to the role of international financial institutions, in particular the International Monetary Fund, the World Bank, and the European Bank for Reconstruction and Development, in supporting investment processes in Ukraine in the context of post-war recovery. The importance of aligning their financial and technical assistance programs with national development priorities and ensuring effective coordination of efforts of all stakeholders is emphasized. In summary, the author concludes that restoring the investment attractiveness of Ukraine in the conditions of post-war reconstruction will require a comprehensive approach that combines urgent measures to overcome the devastating consequences of the war with strategic initiatives aimed at ensuring the long-term competitiveness of the national economy. Only under such conditions will Ukraine be able to fully realize its investment potential and become an attractive destination for international capital in the post-war world.

Made or Invented in Hungary? – Upgrading Possibilities in Light of Global FDI Tendencies

This paper analyses industrial upgrading possibilities for the Hungarian economy in light of recent changes in global Foreign Direct Investment activities. The changing economic landscape provides a reason to investigate the impact of the recent developments in Hungary, a country with an open, dependent economy. The study investigates how the front-running sector, the manufacturing industry, performs during the current, turbulent times. Does it upgrade from the earlier assembly-focused positions in global value chains, or are there any signs of deterioration by backshoring certain activities to the headquarters of multinational companies? By using both primary and secondary research and conducting a regional comparison, the study finds that the Hungarian economy still shows the characteristics of a “factory economy”, but progress has been made towards the aspired “knowledge economy” status.

Assessing the predictive ability of information globalization under global value chains‐environmental sustainability nexus in the BRICS economies: A nonparametric causality approach

AbstractThe expansion of cross‐border information and production resources is facilitated by information globalization through the transfer of fresh ideas, products, technologies, and business models. This encourages information globalization's potential to achieve environmental and other technological advancements in the meantime and helps to make greener production possible through value‐added trade. Prior research, however, largely ignored this aspect of globalization in global value chains' studies. In order to anticipate carbon emissions (CO2) in BRICS economies, this novel study aims to assess the significance of participation in global value chains (GVCs) and information globalization (ING). The innovative research uses nonparametric causality‐in‐quantiles techniques on quarterly data from 1995Q1 to 2018Q4 to quantify for causality‐in‐variance and causality‐in‐mean because there might not be any causation at the first stage but there might be higher‐order interdependencies. The results show that GVC and ING had high predictive capability for carbon emissions, indicating asymmetry regarding environmental sustainability. Additionally, GVC and information globalization asserted that there is a significant interaction effect when it comes to forecasting pollution levels in chosen nations. The provision of financial and R&D assistance for energy efficiency and green production, as well as the use of mass and social media to raise awareness among the firms participating in global value chains, may assist in achieving SDG 13 and Cope26's goal of reducing pollution by 2030. The finding contributes crucial insights for policymakers and enhances the discourse on sustainable hones inside GVCs. The study proposes prioritizing information transparency, worldwide measures, and motivations for eco‐friendly advances to improve environmental sustainability in GVCs. Policymakers are encouraged to foster public–private associations for cohesive global endeavors in diminishing CO2 emanations inside GVCs.

Does the COVID-19 pandemic exacerbate the disincentive effect of trade tariffs on global value chains (GVCs) embeddedness?

Does the COVID-19 pandemic exacerbate the disincentive effect of trade tariffs on global value chains (GVCs) embeddedness?

Contribution of Thoron and Its Progeny to the Effective Dose by Inhalation in the Uranium-Thorium Bearing Regions of Mayo Kebbi and Guéra in Chad

Abstract In recent years, technological developments and hypotheses made by some researchers have revealed that the effective inhalation dose from thoron and its progeny was underestimated. This study uses direct measurements to show the significant contribution of thoron progeny to the effective inhalation dose. To achieve this, radon-thoron discriminative detectors (RADUET) and thoron progeny monitors were used for the simultaneous measurement of radon, thoron, and thoron progeny in 150 selected houses in the townships of Bitkine, Mongo, Léré, and Pala in southern Chad. By solid-state detection, concentrations of radon, thoron, and thoron progeny were measured and associated effective doses evaluated. The mean concentrations of radon, thoron, and thoron progeny were 62 (1), 60 (2), and 7.6 (2.1) Bq m−3, respectively. These concentrations are above the corresponding global average values. The equilibrium factor of the thoron varied considerably from one municipality to another. The average total annual effective dose by inhalation was estimated to be 4.23 mSv. The contribution of thoron and its progeny to the total inhalation dose ranged from 5% to 86% with an average of 62%. Considering the above, public exposure to thoron and its associated progeny is a public health concern in a similar way to radon.

Sustainability of the use of critical raw materials in electric vehicle batteries: A transdisciplinary review

The expected growth of electric mobility will have major sustainability implications in societies across the globe due to a global reliance on primary natural resources and the uneven distribution of benefits and impacts. There has been a call for comprehensive assessments that account for the complex causalities between technological, environmental, social, economic, and political aspects of electric mobility. We present a literature review examining the interconnections between aspects of sustainability in the use of critical materials in electric vehicle batteries. With a holistic review of social sciences, materials science, environmental policy, and innovation management literatures, five domains of sustainability tensions were identified: 1) resource sufficiency, 2) geographical distribution and global value chains, 3) regulation and policies, 4) circular economy, and 5) emerging battery technologies. The framework explicates the wickedness and complex causalities involved in the interdependencies of multiple sustainability dimensions and the related tensions. This study extends the examination to cover political aspects and adds to techno-industrial research on battery materials, supply chains and industrial policies and land use, electricity consumption and governance in EV battery production. This study proposes pathways forward that consider various sustainability interdependencies.

COVID‐19 and global value chains: A discussion of arguments on value chain organisation and the role of the WTO

AbstractWe conduct an in‐depth analysis of the reasons for changes in global value chains as a result of COVID‐19 both from a positive angle, analysing expected changes in the behaviour of firms, and from a normative angle, assessing the different arguments for policy interventions by governments. The analysis generates three main conclusions. First, the COVID‐19 pandemic could contribute to diversification of sources of supply whose extent will vary by sector depending on the costs of value chain reorganisation. The pandemic, by contrast, is not likely to contribute much to re‐shoring, the return of manufacturing activities to industrialised countries, which is more likely to be driven by pre‐existing trends such as rising factor costs in emerging countries, increasing uncertainty about trade policy, and robotization and automation of production. Second, the pandemic has led to increased attention to the provision of essential goods in situations of crisis. Third, the largest risk for the global economy in the aftermath of the pandemic is a move away from open, non‐discriminatory trade policies, which would jeopardise the large benefits of open trade regimes in the current global economy characterised by scale economies, innovation spillovers, and a global division of labour.

Russian Fertilizers as an Element of Strengthening Africa’s Food Sovereignty

Over the past few years, amid the pandemic and other crises in the world markets, food security in Africa has once again become a key issue in international relations. However, what is important for the food sovereignty of the continent is not only the uninterrupted supply of food but also the gradual localization of food production in Africa, which requires increased fertilizer consumption, making the transition from the concept of “food security” to “food sovereignty” relevant. In general, it can be argued that the problem of Africa’s food sovereignty is not related to land scarcity but primarily to Africa’s position in the global value chains in the world’s food markets, as well as its dependence on imports of semi-finished food products. The key role in maintaining import dependence is played by influential lobbying and financial groups, intermediaries linked to transnational corporations, traders, and a number of other international actors. Structural imbalances in economic development have so far prevented most African countries from producing fertilizers domestically, which has led to an increase in fertilizer imports. In recent years, Russian exporters have managed to significantly strengthen their presence in African food and agricultural markets, bringing their share of the African fertilizer market to 20%. This article deals with the main trends of the movement toward food sovereignty in Africa, primarily considering the role of fertilizers in this process. For the first time, an analysis of the strategies of major Russian fertilizer suppliers in Africa is provided.

Origin of the Red‐veined Darter dragonflies migrating into the European part of Russia revealed by stable isotopes of hydrogen

Abstract Dragonflies are well‐known migratory insects, and stable isotopes have been used successfully to study their migrations in America and Asia but less so in Europe. Here we used the isotopic composition of hydrogen (δ2H value) in metabolically inert wing tissues of the dragonfly Sympetrum fonscolombii (Selys, 1840) to investigate migration patterns and likely origin of immigrants into the European part of Russia. During spring–summer, sexually mature dragonflies arrive to Russia for reproduction and individuals of the summer generation (descendants of immigrants) presumably migrate in the opposite direction in the fall. Analyses included 39 specimens of immigrant S. fonscolombii dragonflies, 11 specimens from 3 species of resident dragonflies (including S. fonscolombii) from the European part of Russia and 16 specimens representing 9 resident dragonfly species from Iran. The average δ2H values of the wings of immigrant S. fonscolombii (−71.9 ± 23.4‰) were significantly higher than those of resident dragonflies in European Russia (−121.7 ± 9.5‰) and similar to those of resident dragonfly species from Iran (−72.3 ± 18.4‰). Based on a geostatistical model of the global δ2H values in precipitation, and considering the distribution of S. fonscolombii, the most probable natal area of immigrants arriving in European Russia is located in Southwest Asia. The suggested migration zone covers regions located between approximately 26°–28° N in the south and 56°–58° N in the north, while the migration distance can reach 2000–4000 km.

Using miscanthus and biochar as sustainable substrates in horticulture: An economic and carbon footprint assessment of their primary and cascading value chains

Conventional substrates like peat, stone wool and coconut coir are responsible for high greenhouse gas emissions in the horticultural sector, necessitating low-emission and cost-efficient alternatives. Herein, using miscanthus and biochar as substrate components as well as in cascading substrate application can be alternative practices in a sustainable bioeconomy. However, the carbon footprint and economic impacts of these practices in relation to crop yields have not yet been investigated. Hence, we combined life cycle carbon footprint assessment and costing to analyze the Global Warming Potential and value chain costs of horticultural substrates in tomato cultivation in North-Rhine Westphalia. We conducted a comparison between conventional substrates (peat, stone wool, and coconut coir) and single use and cascading miscanthus-based substrates with and without 1–2 % biochar addition of the miscanthus mass. Also, a subsequent scenario analysis was carried out to examine alterations in inputs and costs.Our results demonstrate that miscanthus-based substrates are climate-friendly and low-cost alternatives to the conventional practices. Switching to miscanthus-based substrates results in more emission savings than other input scenarios investigated. Additionally, incorporating biochar and adopting cascading methods contribute to lower emissions. Notably, biochar has the most significant impact, as its amount correlates with higher emission reductions. Additionally, costs for cascading miscanthus-based substrates are lower compared to conventional substrates. Overall, there is only a slight variance in costs between conventional and miscanthus-based substrates. However, with the introduction of carbon emission pricing and carbon removal certificates, miscanthus-based and biochar-containing substrates may emerge as more cost-efficient alternatives. Thus, by advancing financial instruments on carbon emissions and removal, introducing cascade use within and beyond the horticulture sector, and supporting cultivation of sustainable biomasses, miscanthus and biochar can effectively contribute to the development of a sustainable bioeconomy.

Corporate power and global value chains: current approaches for conceptualizing the power of multinationals

The influential position of multinational corporations in the global economy of the twenty-first century is a particularly controversial and timely subject. This paper aims to improve our understanding of this phenomenon by focusing on one particular aspect of it: corporate power. To this end, it first puts forth a number of conceptual clarifications that help to distinguish different kinds of power and the distinct analytical levels at which power is executed. It then focuses on corporate power and studies it against the backdrop of the development of global value chains. The aim of this analysis is twofold: firstly, to review the variety of analytical tools and ontological perspectives that coin current research on corporate power, and secondly, to discuss the causes and practical consequences of asymmetrical power constellations among corporations and between corporations and other actors. This discussion is meant to facilitate a better alignment of applied research on corporate power with pluralist approaches towards rethinking economics.

Linking Developing Country Firms’ Relational Capital to Their Export Performance in Global Value Chains: The Moderating Role of Technological Turbulence

Global value chains (GVCs) involve globally dispersed activities among interdependent firms. They provide an avenue for developing country firms to improve their export performance. A dominant view is that they can accomplish this outcome with close or trusted relationships with more established GVC partners. However, other factors determine how much such relational capital translates into superior export performance. Drawing on an interfirm learning perspective, we explain why the export effects of developing country firms’ relational capital with GVC buyers and suppliers could depend on technological turbulence. We hypothesize a positive relationship between these firms’ export performance and their relational capital with GVC buyers and suppliers. But we expect technological turbulence to weaken this relationship. Based on a sample of 95 Bangladeshi firms in the ready-made garment industry, this quantitative analysis reports evidence that partially supports our predictions. Specifically, we find a positive relationship between these firms’ relational capital with GVC buyers and their export performance. In addition, the higher the technological turbulence, the weaker this relationship. Overall, this research adds to the theory and practice of interfirm learning in GVCs from the perspective of developing country firms.

Governance of intersecting value chains in an era of polycentric trade: the case of Kenyan fresh fruit and vegetables

Abstract Domestic value chains (DVCs) led by retailers within the global South often overlap with global value chains (GVCs) as well as domestic arm’s length markets. DVCs incorporate some private governance, but we know little about the role of public governance. Based on analysis of Kenyan fresh fruit and vegetables, we ask: How is the power (or ability) of lead firms to govern producers being reshaped by the increased complexity of polycentric trade in the Kenyan horticultural sector? We reveal constraints to lead firms’ ability to directly exercise bargaining power; and shifts towards institutional power in a context of polycentric trade.