Global Value Research Articles

Navigating the Complexity: The Sustainability Challenges in Global Value Chains

The global value chain (GVC) framework may provide a systematic approach to depict and advance sustainable path options at the global, national, and local scales. However, a coherent picture of the fragmented body of knowledge on the sustainability implications of GVCs is lacking. In an attempt to delineate the most effective perspective for addressing sustainability challenges within GVCs, this review explores the main academic streams that have emerged in response to the pressing need for detailed insights into GVCs. These academic streams include sociological, economic, and management approaches. We examine the intersections and distinctions among them, evaluating whether they converge or diverge in addressing sustainability within GVCs. By discussing the limitations and potential of these approaches, we suggest a possible integrated and appropriate research agenda to achieve an encompassing and still operative perspective to address current sustainability challenges.

The Economic Effects of Globalization on Developing Countries

Globalization is the dramatic change in the world economy, a situation in which across the border exchange activities and economic integration are becoming more intense between nations across a worldwide economic system. The paper discusses the multifaceted faces of globalization pressure on developing countries and identifies key benefits that result from such growth, as well as significant challenges. It illustrates how technology development, improved communication, and growing international trade are some of the more obvious drivers of globalization, as well as bring out the complex interface between global forces and local conditions. The main focus of this research is to present a comprehensive review of the negative and positive impacts of globalization on developing nations. The study epitomizes the enormous benefits accruable from increased market access, foreign direct investment, transfer of technology, and improvement in living standards. Opening to larger international markets helps the developing countries to diversify their economies and accelerate growth. For instance, both China and India use globalization to achieve high rates of economic growth by increasing trade and investment opportunities. It has also made vital capital and technological expertise available and has promoted much-needed industrialization and productivity enhancement. Technology transfer has enabled developing nations to step into the modernization of their industry for a more productive integration of the country into global value chains. This, in turn, will enable them to achieve higher economic growth rates and an improved standard of living. Despite such positive contributions from globalization, there are still some challenges that come along and really inhibit development. It addresses crucial backwardness, including increasing income disparity, high vulnerability to external economic shocks, and environmental degradation. In as much as globalization may result in economic growth, the accruing benefits are usually distributed very unequally, and often heighten disparities between urban and rural areas, thereby occasioning social tensions. Developing countries that are heavily dependent on exports or foreign investment may face severe economic instability during a global financial crisis. These impacts were clearly felt in most developing economies when the global financial decline occurred in 2008. Their quests for economic growth, however, have often been accompanied by unsustainable practices that bring with them environmental degradation in the form of deforestation, pollution, and the depletion of resources. Considering these benefits and challenges of globalization, some recommendations in the study for developing countries include:. These comprise domestic institution building to manage the increased complexities from globalization, investment in education and skills development to improve human capital and reduce job displacement, sustainable practices that reduce environmental impacts, and inclusive growth that allows the fruits of globalization to be equitably distributed. This will enable developing nations to manage the increased complexities from globalization and ensure sustainable economic development for their citizens. This study, in short, tried to reflect on various dimensions of globalization concerning developing countries, explaining how these could unleash economic growth, while their challenges naturally came with the process. Grasping these dynamics is crucial for policy makers, researchers, and stakeholders who seek to capitalize on the opportunities of globalization so that its fruits are equitably distributed and the negative impacts well mitigated.

Normas ambientales voluntarias, acciones de mitigación nacionalmente apropiadas y Pacto Verde

The increased voluntary environmental standards in coffee production have been a relevant issue, especially in sustainability and global value chain behavior. Likewise, measures such as Nationally Appropriate Mitigation Actions (NAMA) and the European Union's Green Deal influence this sector. Through a literature review, this article analyzes the interrelations between voluntary standards, NAMA, and the potential to comply with Green Deal requirements, as well as the impact on the productive sector. Standards can contribute to sustainable development goals and emissions reduction, but they are not the ultimate solution to improve the conditions of primary producers. From a market access perspective, productive organizations that have applied sustainability standards and countries with NAMA strategies for the coffee sector are better prepared to comply with the Green Deal. However, the need for public policies to support the sectors, the generation of adequate financing mechanisms, and prospective studies to improve the positioning in the value chains continue to be necessary elements of action that must be strengthened in the short and medium term. Finally, there is still pending conciliation within the World Trade Organization on how these measures will be incorporated into its operating structure.

Acoustic characterization of the Municipal Museum Abade Pedrosa

The 2016 interventions concerning the rehabilitation of the Municipal Museum Abade Pedrosa in Santo Tirso, Portugal were analyzed to verify in what way acoustics interferes in the museum enjoyment. In situ measurements were done in every exhibition room: Reverberation Time, RASTI and the Equivalent Sound Level (LAeq). RT[500, 1k, 2k Hz] values were between 2.5 and 3.9 s. The RASTI mean values varied between 0.44 and 0.55 s. LAeq values of background noise reached a top value of 43 dB(A) in the 1000 Hz frequency band and a global value of 57 dB(A) in every room. A multicriteria analysis was carried out to globally characterize the museum in a simple and perceptive way, with an algorithm that ranks all the different rooms, in which they were generally classified as "bad". A comparison of these values was done with similar studies in other museums: Soares dos Reis (Porto), Serralves (Porto) and other international museums, being possible to verify that the Municipal Museum Abade Pedrosa has worse acoustic values compared to those other museums. It was also suggested possible improvements that could contribute for the acoustic correction of the space, with a predictable cost of about 27000 €.

A Sustainable Production Segment of Global Value Chain View on Semiconductors in China: Temporal and Spatial Evolution and Investment Network

A Sustainable Production Segment of Global Value Chain View on Semiconductors in China: Temporal and Spatial Evolution and Investment Network

Ecological unequal exchange: Evidence from imbalanced cropland soil erosion and agricultural value-added embodied in global agricultural trade

The cropland soil erosion (CSE), a major driver of land degradation and water pollution, is directly caused by agricultural production processes driven by food demand in a globalized food market. However, it is essential to determine what role global trade and agricultural value chains play in regional CSE, especially when imbalanced erosion is embodied in global agricultural trade. In this study, the Revised Universal Soil and Water Loss Equation and the Environment Expanded Multi Region Input-Output Model were used to quantify the global distribution of CSE and the value added in global agricultural value chains to identify trade imbalances. We introduce the Local Environmental Coefficient, the Regional Environmental Coefficient, and the Agricultural Trade Environment Inequality (AEI) index, which were used to analyze the overall and bilateral inequalities in agricultural trade among the world’s regions. The results showed that 34.65 % of the global CSE was embodied in international trade, whereas the ratio of the value added was 30.80 %. The global trade in agricultural products is generally unbalanced, as indicated by the AEI index of developed regions such as Norway and Japan, which is more than 30 times higher than that of regions such as China and Brazil, and more than 20 times higher than the global average. In terms of bilateral trade, China, the United States, and Brazil face more prominent imbalances in their international trade. Major agricultural producers generally bear more environmental costs with less value-added benefits in trade. This study quantifies, for the first time, the implied imbalances of CSE transfer in agricultural trade. Global ecological governance thus requires accountability from all regions, especially in an era of increasing globalization of agricultural trade. Timely adoption of ecological compensation and technology transfer for both large agricultural producers and less-developed regions are key to achieving sustainable global agricultural production.

Can China's aid promote the position upgrading of recipient countries in the global value chains

AbstractThis paper examines the effect of China's aid on the position upgrading of recipient countries in the global value chains (GVCs). It is found that China's aid can significantly promote the position upgrading of recipient countries in the GVCs. Mechanism tests have shown that China's aid has ultimately contributed to upgrading the recipient countries' position in the GVC through the three channels of upgrading their technological level, improving their infrastructure, and promoting their level of industrialization. The findings of this paper contribute to promoting research on the effectiveness of foreign aid in the development of recipient countries.

Foreign capital in neo-structuralism: The subordinate internationalisation of Latin America

This article analyses the subordinate internationalisation of Latin American economies based on the foreign capital understanding in the Latin American neo-structuralism. We discuss the theoretical foundations of this tradition to examine the economic consequences of foreign capital share in the productive structure of these countries after liberalisation. We also identify new forms of susceptibility of Latin American economies through foreign dominance in domestic economic activities. There is an ambiguity in the role of foreign capital, which requires control and coordination to flourish. The State intervention is important to i) enable a positive insertion into global value chains, ii) to foster industrialisation, iii) to mitigate adverse effects of financial flows, and iv) to encourage investments against exogenous cyclical effects.

Sustainability Strategies in Clusters and the Role of Communication

Environmental sustainability impacts on industrial districts and their lifecycle evolutionary processes. Nevertheless, research in this direction is scant, suggesting on the one hand, the role of lead firms of global value chains and, on the other hand, potential contributions of suppliers. e paper explores how district firms have invested in sustainability by analyzing sustainable-oriented communication strategies (certification, web, exhibitions) of Italian leather and jewelry clusters. Results show that districts are evolving by including sustainability in their strategies. A variety of sustainability strategies emerge among district firms, with differences also between firms in B2B and B2C markets.

Could Digital Trade Promote Global Value Chain Participation? Evidence from Multinational Data

ABSTRACT Digital trade and global value chains are important topics in international trade, yet the relationship between them has yet to be fully verified. Based on the multinational panel dataset during 2007–2018, this article empirically studies the impact of digital trade on global value chain participation and its mechanism. The results show that digital trade significantly promotes global value chain participation. In terms of sub-dimensions, national competitiveness of digital services has a positive impact, while digital innovation environment has a negative impact. Digital trade is more conducive to promoting forward-linkage participation and the global value chain participation of developed countries. Digital trade promotes global value chain participation by reducing trade costs and improving technological innovation. The trade cost effect exists only in developed countries, and the technological innovation effect is verified in both developed and developing countries.

Fighting Alone or Mutual Benefit and Win? A Study on Forestry Embodied Energy Competition Network Based on MRIO

Abstract Measuring energy usage in the forestry trade is a topic of great significance. In this article, we use the World Input–Output Database and the multiregional input–output model to establish an embodied energy competition network and assess the influence of global value chain (GVC) integration on competition. The results show that (1) the intensity of competition for embodied energy in forestry is higher for exports compared with imports. Additionally, the import competition network exhibits lower connectivity and overall efficiency. (2) The core regions of the competitive network are primarily found in Europe, Asia, and the Americas. The United States consistently maintains a competitive advantage. However, forestry policies have led to a decline in the status of the United States, (3) The hierarchical structure of export competition is more pronounced. When the weighting degree exceeds 200, this phenomenon becomes more pronounced. (4) From the perspective of GVC, positive embedding in the GVC is negatively correlated with import competition. Backward GVC embedding is positively correlated with import and export competition. On the basis of the above results, this article proposes that countries where backward embedding is the main method should actively participate in building appropriate export international associations, participating in international organizations, and building a relatively harmonious and stable export competition market, thereby helping to maintain economic development and energy environment management.

Tracing Urban Drinking Water Sources: Global State of the Art and Insights From an IAEA‐Coordinated Research Project

ABSTRACTClimate change, inter‐annual precipitation variability, recurrent droughts and flash flooding, coupled with increasing water needs, are shaping the co‐evolution of socioeconomic and cultural assemblages, water laws and regulations, and equitable drinking water access and allocation worldwide. Recognising the need for mitigation strategies for drinking water availability in urban areas, the Isotope Hydrology Section of the International Atomic Energy Agency (IAEA) coordinated a state‐of‐the‐art global assessment to evaluate water sources and distribution of drinking water supply in urban centres, an initiative entitled ‘Use of Isotope Techniques for the Evaluation of Water Sources for Domestic Supply in Urban Areas (2018–2023)’. Here, we report on (a) current research trends for studying urban drinking water systems during the last two decades and (b) the development, testing and integration of new methodologies, aiming for a better assessment, mapping and management of water resources used for drinking water supply in urban settings. Selected examples of water isotope applications (Canada, USA, Costa Rica, Ecuador, Morocco, Botswana, Romania, Slovenia, India and Nepal) provide context to the insights and recommendations reported and highlight the versatility of water isotopes to underpin seasonal and temporal variations across various environmental and climate scenarios. The study revealed that urban areas depend on a large spectrum of water recharge across mountain ranges, extensive local groundwater extraction and water transfer from nearby or distant river basins. The latter is reflected in the spatial isotope snapshot variability. High‐resolution monitoring (hourly and sub‐hourly) isotope sampling revealed large diurnal variations in the wet tropics (Costa Rica) (up to 1.5‰ in δ18O) and more uniform diurnal variations in urban centres fed by groundwater sources (0.08‰ in δ18O) (Ljubljana, Slovenia). Similarly, while d‐excess was fairly close to the global mean value (+10‰) across all urban centres (10‰–15‰), reservoir‐based drinking water systems show lower values (up to ~ −20‰) (Arlington, TX, USA and Gaborone, Botswana), as a result of strong evapoconcentration processes. δ18O time series and depth‐integrated sampling highlighted the influence of the catchment damping ratio in the ultimate intake water composition. By introducing new, traceable spatial and temporal tools that span from the water source to the end‐user and are linked to the engineered and socio‐economic structure of the water distribution system, governmental, regional or community‐based water operators and practitioners could enhance drinking water treatment strategies (including more accurate surface water blending estimations) and improve urban water management and conservation plans in the light of global warming.

Compositional-geochemical characterization and multi-element pollution and risk assessment of potentially toxic elements in the urban landfill soil

Urban areas are characterized by the presence of various pollution sources including landfills. During the recent decade, urban landfills were investigated as a source of pollution by potentially toxic elements and potential deposits for landfill mining. The contents of Cr, V, Ti, Ca, K, Mo, Zr, Sr, Rb, As, Zn, Cu, Co, Fe, Mn, Pb, Ba in soils of Vanadzor city landfill site (VL) were determined using the X-ray fluorescence spectrometer to assess multi-element pollution and ecological risk and to identify potentially toxic elements geochemical associations through the application of compositional data analysis. The results showed that Cr, Mo, Zn, Cu, and Pb displayed significant values (>100%) of coefficient of variation suggesting their anthropogenic origin. Moreover, these elements, except Cr, displayed outliers and extreme values in the same sampling sites located directly on the reclaimed part of the landfill. The median contents of Zn, Pb, Cu, Cr, Cd, and As exceeded the global median values by 8.2, 9.8, 19.0, 4.6, 6.1, and 4.5 times, respectively. The multi-element pollution assessment showed that an extremely hazardous level of pollution was observed on the reclaimed part of the VL. From this site, a trend of decrease in the pollution level was observed in the eastern and western directions. In contrast, an allowable level of pollution was observed in the northern part - toward the direction of the above-located hill. The VL was found to be in an inferior ecological condition (a very high level of potential ecological risk was observed), which might also have a negative impact on the ecosystems located in its vicinity. The hierarchical clustering has revealed that the studied elements are grouped in two geochemical associations: a naturally formed - Co, Fe, V, Ti, Mn, Sr, Zr, Rb, K, Ba, As; and an anthropogenic one - Zn, Pb, Cu, Ca.

Employment conditions, conflicts, and new challenges along the transport-logistics chain

Logistics, understood as a management tool for the flow of goods and transport, has emerged as a strategic aspect of the economy. The complexity of a logistics transport chain is correlated with the increasing structuring of firms into networks and the fragmentation of global value chains. While the modern economy demands greater synchronization, the Covid-19 pandemic highlighted that a disruption to any link in the chain can have systemic impacts. The pandemic has placed significant pressure on global supply chains, affecting employment conditions, particularly on ships, in warehouses, and in last-mile logistics. Labor market distortions are offset by intense competition along the logistics chain, encompassing maritime activities, cargo handling in ports, and transport services in the hinterland, where distribution centers are located. In this introduction, we define logistics as a complex and diverse field, elucidating key aspects not yet fully addressed in the scientific literature. This Special Issue aims to enrich the scientific debate on logistics by exploring the evolving dynamics along the logistics chain with a focus on labor issues. We examine logistics and transport infrastructures by posing questions aimed at facilitating comprehensive empirical descriptions and broad theoretical reflections on contemporary forms of labor.

Technology transfer and global value chain upgrading of manufacturing firms: Evidence from China

Breaking through the predicament of "low-end lock-in" and achieving the upgrading of enterprises within the global value chain (GVC) is a critical issue in the study of internationalization strategies for enterprises in emerging economies. This paper uses China, a quintessential representative of such economies, as a case to explore how technology transfer can facilitate the upgrading of enterprises' GVCs. This research aims to reshape the international strategic positioning of Chinese enterprises by promoting the integration and development of technology transfer and the GVC. Utilizing patent data from Chinese manufacturing enterprises, as well as data from Chinese industrial enterprises and customs records from 2004 to 2014, this study empirically examines the relationship between technology transfer and the upgrading of enterprises' GVCs. Additionally, the moderating effect of industrial agglomeration is incorporated into the research framework.The findings reveal that both technology transfer in and technology transfer out significantly positively influence the upgrading of enterprises' GVCs, highlighting the crucial role of technological knowledge flow in enhancing enterprise positioning within the GVC. Furthermore, industrial agglomeration is shown to exert a positive moderating effect on GVC upgrading as a result of technology transfer out. This study provides valuable insights for policymakers, enterprise managers, and academics, enabling a more nuanced understanding of the pivotal role of technology transfer in reshaping GVCs. Consequently, it offers robust support for the internationalization strategies of Chinese enterprises.

Global value chain embedding and enterprise energy efficiency: A worldwide firm-level analysis

Global value chain embedding brings growth opportunities for small and medium-sized enterprises, despite their continuously controversial environmental effects. This study examines the impact of global value chain embedding on the energy efficiency of small and medium-sized enterprises using a worldwide firm-level micro data. Results support that global value chain embedding significantly improves enterprise energy efficiency, and this conclusion holds even after self-selection and endogeneity are considered. Global value chain embedding promotes enterprise innovation and labor productivity through market scale and induced learning effects and improves the energy efficiency. Moreover, the evidence only supports the lock-in effect of low value-added, while the lock-in hypothesis of pollution link and foreign technology is invalid. The positive impact of global value chain embedding on energy efficiency is greater for non-high-tech industries, mainly coming from export learning effect and innovation effect. Furthermore, there is no industry heterogeneity in the lock-in effect. Country heterogeneity in the effect of global value chain embedding on energy efficiency characteristics of regional embedding and industrialization, but not to economic development and human capital.

Export Spells and the Position of Global Value Chain: Evidence from China’s Industrial Firms

The international division of labor has entered the era of the global value chain (GVC) due to the continuous influence of the scientific and technological revolution. At the same time, sustainable development has taken center stage in the evolution of international trade, and the export spell is an important indicator to measure the sustainable development of export trade. Based on the China customs data, the Chinese industrial enterprises database and the Chinese input-output table from 2000 to 2012, this paper uses the survival analysis method to estimate the enterprises’ export spells and calculate their positions in the GVC through upstreamness. It then investigates the impact of export spells on the position changes of the GVC enterprises. According to the paper, export enterprises near the bottom of the GVC are more vulnerable to extinction. And the duration of enterprises’ export spells has a U-shaped relationship with their positions in the GVC, which means that enterprises will continue to move downstream of the GVC as duration increases, but positions will shift upstream if duration reaches the inflection point. The mechanism test shows that the quality of export products is an important channel through which the duration of enterprises’ export spells influences their GVC positions.

Power and coordination: Governance in the poultry regional value chain in Southern Africa

ABSTRACT There is a growing body of literature exploring governance in regional value chains (RVCs) in Africa. Agro-processing RVCs are of particular interest, as this is where the manufacturing capabilities of most African countries lie. The research on RVCs in Africa highlights governance by lead firms and government actors as an important aspect in determining the structure and outcomes within these RVCs. Using the global value chain (GVC) analytical framework, this article analyses governance in the poultry RVC in South Africa, Zambia and Zimbabwe. The paper finds that the poultry RVC is a bilateral oligopoly, where the lead firms are supermarkets and large poultry producers with exclusive rights to multi-territorial breeding rights. The article highlights that both large producers and the supermarkets play an important role in the formation and structure of the poultry RVC, with important implications for regional integration and industrialisation.

Time Series Econometric Analysis of ODOP's Contribution to State-Level GDP Growth in India

This study examines the economic impact of the One District One Product (ODOP) scheme on state-level GDP growth in India using time-series econometric models from 2011 to 2023. The ODOP initiative, launched by the Indian government, aims to promote regional economic development by fostering unique local products from each district. By employing Vector Autoregression (VAR) and Johansen Co-Integration methods, the research quantitatively assesses the causal relationship between the ODOP scheme and GDP growth across various states. Preliminary findings suggest that ODOP significantly contributes to regional GDP, particularly through enhancing local production and market reach, thereby integrating regional economies into national and global value chains. This study underscores the importance of targeted regional policies in achieving broader economic objectives and fostering sustainable development. It also highlights the ODOP scheme’s role in promoting traditional products and skills, which aligns with the government's larger goals of a self-reliant India.

Economic gains from geographic shifts in international sourcing

The geographic evolution of global value chains (GVCs) has been significantly changing the pace and structure of economic development in many countries. We first employ a global input-output (IO) model to quantify the contribution of geographic shifts in international sourcing to China's economic gains. In 2019, China's GDP per capita was 11% below the world average. We show, however, that the gap would have been 39% if there had been no international sourcing shifts between 1995 and 2019. We subsequently propose an optimization model in the global IO framework to explore potential strategies which further improve China's GDP per capita. The optimization results suggest that import substitution and export promotion could be two possible strategies. However, these strategies could fail if all countries adopt the same strategies and participate in the non-cooperative competition. Instead, our results suggest that promoting technological upgrading provides more sustainable opportunities for improving a country's gains.