Value Chain Perspective Research Articles

Brexit and Asian Exports: A Value Chains Perspective

ABSTRACT The UK departure from EU (Brexit) has profound economic implications for all countries engaged in the global value chains. Using a new decomposition approach, this study examines the position of Asian exports in the EU27-UK supply chains trade. We find that total Asian VA embedded in the EU27-UK supply chains trade increased during 2000–2014, mostly due to the emergence of China. Although Japan’s position in the EU27-UK supply chains trade declined, her positions in the supply chains trade between EU27 (the UK) and all EU27’s (the UK’s) trading partners have increased. Some Asian industries, including computer and electronic and electrical equipment or textile and garment apparel, may affect heavily due the EU27-UK trade disruptions.

The economic impact analysis of satellite development and its application in Korea

Many countries began satellite development from the beginning of the space era and especially after the Apollo era. Korea started satellite development in 1992 by launching small satellite KITSAT-1 more than 20 years after the Apollo 11 lunar landing. Since then, Korea has developed 15 satellites including eight small satellites, five low earth orbit (LEO) Korean Multi-Purpose Satellites (KOMPSAT), and two geostationary orbit (GEO) satellites. Korea is currently developing KOMPSAT 6 and 7 with advanced optical and radar observation capability, GEO-KOMPSAT 2B, middle-sized Compact Advanced Satellites (CAS), and next generation small satellite (NEXTSat). These efforts will raise Korea's satellite technology to the next level. To prepare strategies for efficient and effective development of satellites, it is essential to elaborately assess the economic impacts of previous satellite development projects and their application. In this paper, we examine the economic impacts of Korea's investment into the research and development of national satellites, and their application in the perspective of satellite value chain. To this end, we conducted a cost–benefit analysis on the development of representative satellites. As non-economic impacts, we examined the change of technology independence and technology level, network building effect, and aerospace ecosystem activation effects.

Carbon emission intensity embodied in trade and its driving factors from the perspective of global value chain.

As a global problem, climate warming has received widespread attention recently. With trade development and labor division deepening, there exist large differences in carbon emission intensity (CEI) embodied in different trade patterns. Assessing environmental costs of different trade patterns is the core issue for policy makers. We decompose the overall CEI embodied in trade into CEI embodied in final goods trade, domestic trade, traditional intermediate trade, and global value chain trade. Using global multi-region input-output table provided by the WIOD database, we calculate the CEI embodied in different trade patterns during 1995-2014. Further, we analyze the influencing factors of CEI embodied in different trade patterns. We find that CEI embodied in domestic trade is lower than that of international trade. All kinds of embodied CEI in developing countries are higher than that in developed countries. Furthermore, the driving factors of the overall embodied CEI, including domestic trade and international trade, are population, PGDP, energy intensity, and trade. The expansion of industrialization can effectively reduce the CEI embodied in trade of developing countries. The increase of PGDP and industrialization can effectively reduce the CEI embodied in trade related to global value chain and traditional intermediate trade, while only the increase of PGDP can effectively reduce the CEI embodied in domestic trade and final goods trade. Population can reduce the embodied CEI in trade related to global value chain and traditional intermediate trade of developed countries. Economic development can almost promote the reduction of the CEI embodied in all trade patterns. Although industrialization has insignificant impact on the CEI embodied in final goods trade of the developed countries, it can reduce such CEI of developing countries.

Tariff costs embodied in product prices: a dynamic analysis from global value chain perspective

ABSTRACT The present study examines a measure, the embodied tariff, which is defined as the sum of all tariffs imposed on intermediate inputs at various stages of productions. It captures the total tariff costs in products in the context of the global value chain. We estimate the embodied tariff for 44 economies and 56 sectors, decompose it by tariff source, and also decompose its temporal changes using structural decomposition analysis. The embodied tariff is more than twice the size of the traditional direct input tariff, indicating a non-negligible value chain effect. This demonstrates an overall declining pattern over time, which reflects a dominating effect of decreasing customs tariffs over increasing international production fragmentation. Since 2011, however, the decline in international production fragmentation has also decreased embodied tariffs. A country’s customs tariff is sizably translated into the embodied tariff of its own products, creating a competitive disadvantage for domestic producers.

Building a viable maize hybrid value chain in Nepal: recent successes and the road ahead

In Nepal, expanding the production of hybrid maize seed has been prioritized by the government to meet the country’s growing demand for maize grain. Over the past 15 years, Nepal has released seven new hybrid maize varieties, but only two varieties were commercialized until 2019. This article takes a value chain perspective to assess how a hybrid maize seed system can be developed in Nepal. We collected data from 415 maize-growing households, 11 seed producing businesses, 95 seed retailers, 15 service providers, and 21 end-use industries. Findings showed that the seed companies lacked capacity in production, business operations, and marketing while agro-dealers and farmers have depended on imported varieties. Upgrading the chain will require the provision of technical and financial services and a supportive regulatory environment. For seed businesses, this means improved access to parental lines and increased capacity to build demand for new hybrids in a competitive market place.

The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0

Industry 4.0 is expected to impart profound changes to the configuration of manufacturing companies with regards to what their value proposition will be and how their production network, supplier base and customer interfaces will develop. The literature on the topic is still fragmented; the features of the emerging paradigm appear to be a contested territory among different academic disciplines. This study assumes a value chain perspective to analyze the evolutionary trajectories of manufacturing companies. We developed a Delphi-based scenario analysis involving 76 experts from academia and practice. The results highlight the most common expectations as well as controversial issues in terms of emerging business models, size, barriers to entry, vertical integration, rent distribution, and geographical location of activities. Eight scenarios provide a concise outlook on the range of possible futures. These scenarios are based on four main drivers which stem from the experts’ comments: demand characteristics, transparency of data among value chain participants, maturity of additive manufacturing and advanced robotics, and penetration of smart products. Researchers can derive from our study a series of hypotheses and opportunities for future research on Industry 4.0. Managers and policymakers can leverage the scenarios in long-term strategic planning.

Emission Embodied in International Trade and Its Responsibility from the Perspective of Global Value Chain: Progress, Trends, and Challenges

In the context of economic globalization and production fragmentation, the boom in intermediate and processing trade has made EEIT (emission embodied in international trade) accounting and the recognition of its responsibility more and more complicated, and the drawbacks of traditional gross value statistics more and more conspicuous. The rapid development of global value chain theory in recent years has given rise to a decomposition framework of the trade flow in a country’s export, based on the global value chain, which offers new methods to study EEIT and allocate its responsibility. The combination of global value chain accounting and EEIT research can offer new ways to research EEIT transfer and allocate its responsibility. Utilization of this technique can help understand each country’s “common but differentiated responsibility” in emission reduction. Finally, aiming at the knowledge gaps in current analysis, this paper attempts to discuss the trends, and possible challenges, in research on EEIT, and its responsibility based on the global value chain theory.

An Analysis on the Improvement of China's Product Export Competitiveness to the United States based on Production Division

본 연구는 2008년 금융위기 이후 중국과 미국의 무역마찰 증대와 무역촉진 현황을 양국의 무역 관계, 규모, 구조에 대한 생산 분업의 영향을 고려하여 중국 상품의 미국 수출경쟁력을 표준국제무역분류기준(SITC)에 따른 가치사슬 관점과 개선된 지수를 바탕으로 재검증하고자 하였다. Section 8에서는 중국이 미국에 비해 수출가치, 수출강도, 수출단가, 무역 보완성 측면에서 현저한 이점을 지니고 있어서 대미 수출경쟁력을 보이는 것으로 확인되었다. 대미 무역적자로 분석된 Section 5와 대미 무역흑자로 파악된 Section 6 모두 중국의 대미 수출 단가가 상대적으로 높게 나타났다. Section 7에서는 미국에 대한 수출 단가는 높지만 수출 강도가 다소 낮아 중국이 기술집약적 제품에서 미국에 대한 수출경쟁력이 상대적으로 약한 것으로 확인되었다. 중국의 대미 경쟁력을 추가적으로 검증하기 위해 일본, 인도, 러시아, 말레이시아, 태국을 비교대상으로 선정하여 분석한 결과 중국은 비교 대상 국가들에 대한 수출경쟁력이 유의미하지 않은 것으로 나타났으며, 특히 일본에 대한 자본 및 기술집약산업에서 수출경쟁력이 유의미하지 않은 것으로 나타났다. 이를 바탕으로 중국 경제규모, 1인당 소득, 기술연구개발 및 제도의 4가지 격차, 상호직접투자 요인을 설명변수로 설정하여 중력모형을 이용한 패널 실증분석을 수행하였다. 분석결과, 중국 경제의 점진적 성장은 수출경쟁력을 효과적으로 향상시키지 못했던 것으로 나타났으며, 과거 다른 나라의 직접투자를 흡수함으로써 중국이 기술적 어려움과 대외무역의 지속적인 마찰이 초래하게 되었던 것으로 파악되었다. 대외직접투자와 자체적인 제도의 개선은 긍정적인 역할을 하였지만, 대외투자 규모, 주최국 수요 능력, 제도 보완에 국한되어 있어서 장기적으로 중국 상품의 수출경쟁력을 단기간에 개선하기는 어려운 것으로 파악되었다. 마지막으로, 중국이 국내외의 관점에서 지속 가능한 상품 수출 경쟁력을 제고할 수 있는 방안을 논의하였다.This study aims to re-verify the export competitiveness of Chinese goods to the U.S. based on the value chain perspective and improved index according to the SITC, considering the influence of the division of production on the trade relations, size and structure of the two countries after the 2008 financial crisis. In Section 8, China has a remarkable advantage in terms of export value, export intensity, export unit price, and trade complementarity compared to the US, which shows that it has export competitiveness to the US. In section 5 and section 6, China s export unit price to U.S. is relatively high, with the former’s trade deficit and the latter’s trade surplus to U.S. In section 7, the export unit price to U.S. is higher, but the export intensity is somewhat lower, which indicates China has relatively weak export competitiveness to U.S. in high technology intensive products. In order to further verify China s competitiveness in the US, Japan, India, Russia, Malaysia and Thailand were selected as the comparative subjects and analyzed. As a result, China s export competitiveness was found to be insignificant for the comparable countries, especially in the capital and technology-intensive industries for Japan. Based on this, China s economic scale, per capita income, technology research and development, institutional gap, and mutual direct investment factors were set as variables and panel empirical analysis using gravity model was conducted. The analysis showed that the gradual growth of the Chinese economy did not effectively improve its export competitiveness, and it was found that by absorbing direct investment from other countries in the past, China had caused technical difficulties and continued friction in foreign trade. While the improvement of foreign direct investment and its own institutional system played a positive role, it was found that it was difficult to improve the export competitiveness of Chinese goods in a short period of time because it was limited to the scale of foreign investment, host countries’ demand capacity and institutional supplementation. Finally, we discussed ways for China to enhance its competitiveness in exporting sustainable goods from both domestic and foreign perspectives.

The innovation value chain of patents: Breakthrough in the patent commercialization trap in Chinese universities.

The innovation value chain is an effective tool for analysing innovation activities and reflects the process of value creation and increase in innovation activities. From the perspective of innovation value chains, we divided patent innovation activities into three stages: knowledge innovation stage, applied research stage and patent commercialization stage. The panel data from 64 universities directly managed by the Ministry of Education from 2009 to 2017 were used and several conclusions were drawn: 1) In the initial stage of knowledge innovation, the fundamental research fund plays a crucial promoting role, and knowledge innovation achievements are mainly published academic papers. 2) In the applied research stage, the knowledge innovation in the early stage and the fund investment in R&D activities have a significant positive effect on the patent output of universities, but the personnel investment has a negative effect. 3) In the final stage of patent commercialization, preliminary research results have a positive impact on patent commercialization, whose marginal effect depends on the industry-university-research relationship, external competition and reputation of the university. The evidence showed that there is a feedback channel between university patent commercialization and knowledge innovation, and new knowledge generated by the interaction with the outside world in the process of patent commercialization was transmitted to the subject of knowledge innovation through this channel, forming a virtuous dynamic cycle. By analysing the driving factors of the value chain of patent innovation in colleges and universities, we provided empirical evidence for the operation mechanism and policy formulation of college patents in China.

Perceptions and exposure to climate events along agricultural value chains: Evidence from Nigeria

Africa's food systems are among the most vulnerable sectors to climate risk. Unfortunately, numerous activities along food supply chains (production, processing, storage, marketing and consumption) are also important contributors to climate change. Despite the differential effect of climate events on activities along food supply chains and vice versa, most climate change perception studies in agriculture focus on producers, particularly crop farmers. This study adopts a value chain perspective to examine climate change perceptions among economic agents all along the maize-poultry value chain in Nigeria. We find that economic agents perceive those climate events that have a direct effect on their economic activity and this is not restricted to crop farmers. We also find that very few actors along the maize-poultry value chain believe that their economic activity negatively affects the environment and contributes to climate change. Though African countries might currently not be major contributors to climate change, this indicates a need for more awareness among economic agents about the effects of various agriculture-related activities on the environment and their contributions to climate change to encourage practices and technologies that can reduce agriculture's negative effect on the environment and contribution to climate change.

An Improved Swarm Intelligence Algorithm for Multi-Item Joint Ordering Strategy of Cruise Ship Supply

From the perspective of the global value chain of the cruise industry, the output value of cruise operation accounts for 50%, with the highest added value, and cruise ship supply is the crucial link in cruise operation management, with substantial economic benefits. Therefore, optimizing the purchasing process can not only save costs for cruise companies but also improve cruise level service. Aiming at the purchasing characteristics and modes of cruise ship supply, an optimization model of multi-item joint ordering is constructed under global cruise ship supply chain, considering different order cycles, integrated operation of purchase, delivery, and inventory based on a cruise distribution center. And an improved swarm intelligence algorithm, called fireworks algorithm with inertia weight (WFWA), is proposed for global optimization of the objective function. By comparing the optimization results with fireworks algorithm (FWA), genetic algorithm (GA), and particle swarm optimization (PSO) through experimental tests, it demonstrates that WFWA has higher optimization accuracy and better global convergence.

Resource recycle efficiency improvement analysis for sharing bicycles: Value chain perspective

Sharing economy represents a new business model in which the access to goods, services, spaces, and other assets can be shared or obtained. Sharing economy firms have been able to achieve global levels of success at an unprecedented space. It is acknowledged by the public and enterprises due to intensive utilization of resources. In order to help enterprises understand and clarify the resources efficiency improvement mechanism of environmental impact during the promotion of the sharing economy model in operation, this paper explores the evolutionary history and value chain of different bicycle consumption pattern, then employs a queuing theory to discuss the feasibility of the sharing bicycle company recycle system from the perspective of value chain and analyzes the approach to improve the efficiency of recycling system. It creates a model against current traditional recycling mechanism which contains production, consumption and recycling process with a queuing theory as a base. Related cost and benefit calculation are analyzed based on an example simulation, an empirical application in two sharing bicycle companies are discussed as well. Result shows that, if the ration of operating cost of each recycle station and the average reduction cost each bicycle recycle can meet a range between the average number of bicycles in recycle station and the average number of bicycles waiting to be recycled, the sharing bicycle resource recycle efficiency can be improved, accordingly, it can not only alleviate the urban environmental problems as it allows idle assets to gain more usage but also generate more frequent economic activity, the bicycle companies have a value adding in sharing bicycle operation from the efficiency improvement. The comparison between two major sharing bicycle enterprises (OFO and Mobike) with two different schemes in China indicates that the model with self-source of damaged bicycles recycling are more beneficial than the model with the public help of the damaged bicycles recycling.

A conceptual information sharing framework to improve supply chain security collaboration

Modern supply chains are critical in terms of efficiency, economic activities and commercial impact, particularly in case of security incidents. Inland terminals, commercial ports and dry ports constitute key gateways for the transportation flows in these modern supply chains and are require enhanced security procedures. This paper develops a framework that facilitates the sharing of information among various supply chain stakeholders, which is expected to improve the security level from a value chain perspective. In this context, we propose the upgrade of the current security strategies utilising existing processes, equipment in order to minimise time and cost currently needed but more importantly improving the level of security in the supply chain. A conceptual rule and role-based data fusion framework is developed enabling the seamless and timely exchange of messages. The proposed data fusion framework has a simple architecture that supports quick integration to either network-based, distributed systems or conventional stand-alone systems and adheres to common data fusion principles. The proposed framework considers different components (e.g., sensors, algorithms and fusing procedures) in an equipment agnostic approach so as to enable easy access and easy usage of security information.

A conceptual information sharing framework to improve supply chain security collaboration

Modern supply chains are critical in terms of efficiency, economic activities and commercial impact, particularly in case of security incidents. Inland terminals, commercial ports and dry ports constitute key gateways for the transportation flows in these modern supply chains and are require enhanced security procedures. This paper develops a framework that facilitates the sharing of information among various supply chain stakeholders, which is expected to improve the security level from a value chain perspective. In this context, we propose the upgrade of the current security strategies utilising existing processes, equipment in order to minimise time and cost currently needed but more importantly improving the level of security in the supply chain. A conceptual rule and role-based data fusion framework is developed enabling the seamless and timely exchange of messages. The proposed data fusion framework has a simple architecture that supports quick integration to either network-based, distributed systems or conventional stand-alone systems and adheres to common data fusion principles. The proposed framework considers different components (e.g., sensors, algorithms and fusing procedures) in an equipment agnostic approach so as to enable easy access and easy usage of security information.

Perception and adoption determinants of pre and post-harvest technologies: tomato value chain perspective

Perception and adoption determinants of pre and post-harvest technologies: tomato value chain perspective

Perception and adoption determinants of pre and post-harvest technologies: tomato value chain perspective

This study investigates the perception, the importance and adoption determinants of pre and post-harvest technologies (PPHTs) along fresh tomato fruit value chain. Data was collected from value chain actors via a survey. The analytical result reveals the choice of cultivar type, and temperature management as the most important technologies being used to reduce post-harvest losses in Ghana's tomato value chain. There is a positive perception of PPHTs' ability to reduce post-harvest losses. However, the degree of perception differs among adopters and non-adopters of PPHTs. Whereas, increase in adopters' age and the perceived PPHTs risk are likely to undermine the adoption of PPHTs, increase in temperature and access to PPHT, education, labour, credits are likely to increase the adoption PPHTs significantly. Hence, there is the need to consider the perception, the importance of PPHTs, and the adoption determinants surrounding PPHTs in making policies to control post-harvest losses in tomato value chain.

A global value chain (GVC) model for determining changes in global output caused by currency appreciation

ABSTRACTThis study used a global value chain model to determine the effect of currency appreciation and its resultant impact on different sectors, value chains, and world output. Based on the global value chain (GVC) perspective, we derived a formula for the computation of world output adjustment by sectors caused by currency appreciation. Utilizing the WIOD database, we applied the formula to calculate the changes to the value-added by each sector level, given a specified currency appreciation. Our empirical findings revealed that currency appreciation creates an illusion of higher GDP growth when denominated in a foreign currency. However, when denominated in domestic currency, appreciation of the currency put an adverse impact on its own GDP growth. The impact of currency appreciation varies from country to country and their respective sectors. Taking the world as a whole, US dollar exchange rate appreciation drives up global real GDP, while RMB appreciation leaves a negative impact on the global GDP. Furthermore, it is assumed that if a country’s aggregate demand exceeds its aggregate output, its currency appreciation tends to expand global GDP. Similarly, if a country produces more than what it consumes, its currency appreciation leads to decline in the global GDP.

Examining Global Competitiveness of Indian Agribusiness in the Twenty-first-century Asian Context: Opportunities and Challenges

Indian agribusiness is being seen as an important arena for creation of employment and income for large sections of India’s rural and agrarian population in the coming years and decades by public agencies, nationally and globally. This is happening in the context of strong agribusiness sectors in the neighbouring countries of China and those in the South-East and East Asia. This article examines the global context of agribusiness competitiveness from an Indian perspective, including the global trade regime and focusses on a few key sectors like dairying, cereals, fruits and vegetables and identifies major factors in their export performance from a value chain perspective. It also examines key global trade policies at the World Trade Organization (WTO) level and Indian agribusiness policy domain to explore ways forward to focus on promising sectors with an appropriate policy and practice steps.

The construction mechanism and algorithm of cross border E-commerce export logistics mode from the perspective of value chain

The construction mechanism and algorithm of cross border E-commerce export logistics mode from the perspective of value chain

Trade Facilitation and GVC Participation：An Analysis Based on the World Input-Output Database

Under the background of economic anti-globalization and the escalation of Sino-US trade frictions, it is particularly important to continue to promote trade facilitation. From the hard environment” of trade facilitation, the construction of infrastructure such as transportation can reduce transaction costs, reduce the uncertainty of the trading cycle, make the order, stocking and shipping cycle more predictable, and greatly shorten the export side and the distance of the final demand of the host country. From the soft environment” of trade facilitation, the red tape” in the trade process has caused incalculable losses to the value of the product. The effect of trade facilitation has been confirmed by many scholars, but the research about the effect of trade facilitation on GVC participation is rare.From the perspective of research, this paper focuses on the GVC participation effect of trade facilitation from the perspective of national heterogeneity, industry heterogeneity and regional value chains, and finally draws a more policy-meaningful conclusion.This paper uses the entropy method and the KWW expansion method to measure the degree of trade facilitation and participation, and uses the OLS and the two-stage OLS to conduct empirical tests. The raw data for the core explanatory variables in this paper is derived from the World Input-Output Database（WIOD）. The main explanatory variables are from World Bank data and the WEF database.The main conclusions are as follows: firstly, trade facilitation enhances the depth of a country’s GVC participation; secondly, trade facilitation has a structural impact on GVC participation. Compared with the hard environment” of trade facilitation, the current improvement of the soft environment” of trade facilitation has a more prominent effect on GVC participation, especially in developing countries. From the perspective of industry heterogeneity, the impact of trade facilitation on GVC participation in sectors with higher asset specificity is more obvious. From the perspective of regional value chains, trade facilitation inhibits the regional fragmentation” of value chains and promotes the formation of GVCs.Therefore, we should take the enforcement of the Bali Agreement on Trade Facilitation as a chance to improve the border management, trying to establish a single window”, promote paperless, automated and intelligent customs clearance, and improve the response speed of the international production division chain. Meanwhile, we should improve the business environment by effectively reducing the cost of compliance in international trade, accelerating intermediary flows, and optimizing the allocation of resources. At last, we should speed up the negotiation of WTO cross-border electricity suppliers, formulate multilateral rules for cross-border electricity providers, and cultivate new trade formats in the GVC system, so as to deepen the division of work in GVCs.