Value Chain Upgrading Research Articles

Scope of vegetable and root crops value chain in Ethiopia

The value chain refers to the entire set of activities carried out by different actors in the agriculture sector to move a product from conception to end use and beyond. Design, production, marketing, distribution, and consumption are all included in the value chain. Currently, different researches were conducted by using value chain concept as a current issue in Ethiopia. This paper critically reviewed that the existing gap in vegetable and root crop value chain studies regarding the scope and approach of the studies. It indicated that the value chain studies conducted in Ethiopia geographically focused on local value chains. It also lacks criteria for selection of specific commodity or entry point for value chain studies. Most of the vegetable and root crop value chain studies highly addressed identification of value chain actors and mapping of flow of commodities without incorporating the most important component of value chain which is value chain upgrading, Governance and gender issues. Therefore, for future researches it is recommended that value chain studies goes beyond simple depiction of value chain map by integrating value chain governance, upgrading, gender issues in a value chain and conducting global value chain analysis.

Unleashing the mechanism among environmental regulation, artificial intelligence, and global value chain leaps: a roadmap toward digital revolution and environmental sustainability.

Strengthening environmental regulation and adhering to the green as well as sustainable development of China's manufacturing industry has become an inevitable trend. Technological innovation leads to industrial transformation, and artificial intelligence becomes a new driving force for core competitiveness and value chain upgrading. Is there a link between environmental regulation, artificial intelligence, and the jump in global value chains? Does AI have a mediating effect? This paper draws the following conclusions through panel estimation: environmental regulation plays a positive role in global value chains, and artificial intelligence has improved the level of global value chains as well. Further analysis of the mediation effect of artificial intelligence finds that artificial intelligence replaces low-end labor, reduces labor costs for enterprises, and promotes the leap of the global value chain. The strengthening of environmental regulation has greatly improved the total factor productivity of enterprises, artificial intelligence has significantly improved production efficiency, and total factor productivity has shown a positive influence on the global value chain as well.

Effect of green technology innovation on the upgrading of the manufacturing value chain: Evidence from China

Green technology innovation is an important driving force for the upgrading of the manufacturing value chain. The purpose of this study is to explore the effect of green technology innovation on the upgrading of the manufacturing value chain under institutional environments. To this aim, the panel data of 28 provinces in China from 2010 to 2019 and panel threshold regression model are applied. Empirical results show that the effect of green technology innovation on the upgrading of the manufacturing value chain is nonlinear under institutional environments. The effect of formal and informal institutional environments on the relationship between green technology innovation and the upgrading of the manufacturing value chain is also different. The positive effect of green technology innovation on the upgrading of the manufacturing value chain is best when the level of formal institutional environment is high and informal institutional environment is moderate. In addition, when we divide the sample into three regions (Eastern, Central, Western), the effect of green technology innovation on the upgrading of the manufacturing value chain under institutional environments shows regional heterogeneity. Hence, with this calculated optimal interval of institutional environments, the government can adjust and improve institutional environments so as to provide the most favorable institutional conditions for green technology innovation to promote the upgrading of the manufacturing value chain. This research is helpful for the government to make rational decisions according to the situation.

International research on labor in agri-food value chains: A bibliometric review from web of science

Value chains are an important driver for the current labor dynamics in the agri-food sector, and agri-food value chain sustainability strongly depends on decent work conditions. An increasing literature body have been investigated the interactions between chain agents and how it impacted labor issues. Our aim was to map the scientific landscape of the scientific knowledge on labor in agri-food value chains. We performed a bibliometric review of 343 articles indexed in the Web of Science based on descriptive and network analysis of articles metadata, which covered authors, journals, citation times, keywords and countries. We showed that labor in agri-food value chains has an international audience, despite that knowledge production was largely built by a restraint leading scientific network. Overall, the scientific knowledge is organized into four main research domains on labor in agri-food value chains: (1) labor governance in global value chains through standards, (2) employment in value chains and impacts on socioeconomic conditions of rural areas, (3) gender issues and value chains, (4) labor and upgrading in global value chains. The controversies in the international literature regarding labor issues in the agri-food value chains, and blind spots of current research are discussed.

Digital Economy and the Upgrading of the Global Value Chain of China’s Service Industry

China’s service trade competitiveness is weak, and the service industry occupies a low position in the GVC (Global Value Chain); therefore, promoting the upgrade of the GVC of China’s service industry is worth studying. Under the new situation of the continuous integration of the digital economy and the real economy, the digital economy has injected new momentum into the mid-to-high end of the GVC of China’s service industry. Based on the panel data of the service industry sub-sectors, the mediating effect model is constructed, and the system GMM (Generalized Method of Moments) is used to empirically determine whether the digital economy can significantly improve the participation and position of China’s service industry in the GVC, and promote the upgrading of the GVC of China’s service industry. This conclusion still holds after replacing the independent variable measurement indicator, adding control variables, considering changes in industry trends, and using quantile regression and other robustness tests. The promotion effect of the digital economy on the upgrading of the GVC of China’s service industry shows heterogeneity in different service objects and service industries with different factor intensities, indicating that the digital economy will affect the internal structure of the upgrading of the GVC of China’s service industry. The results of the mediation test found that the service trade cost, multilateral resistance to service trade, service industry structure, financial development level, human capital and service export complexity are the mechanisms for the digital economy to enable the upgrading of the GVC of China’s service industry. This study improves the analysis of the impact factors of the GVC in the service industry, enriches the theory of the GVC, and improves the research content of digital economy theory. This study also provides a reference for other developing countries similar to China on how to promote the upgrading of the GVC of the service industry in the process of digital economy development.

Research on the Transformation and Upgrading of Intelligent Manufacturing from the Perspective of Digital Ecosystems

In the context of a new round of industrial revolution and technological paradigm change, the transformation and upgrading of intelligent manufacturing have become an important research issue. To explore the transformation path and implementation mechanism of intelligent manufacturing in enterprises, Our research takes CRCHI as a case to conduct the transformation and upgrading of intelligent manufacturing based on the perspective of digital ecosystems. The results show that, firstly, Data-Intelligence technology empowers the value co-creation process of multi-stakeholder interaction and resource integration in the enterprise ecosystem, and then realizes the transformation and upgrading of intelligent manufacturing; secondly, the transformation and upgrading of intelligent manufacturing is the transformation and upgrading of industrial chain and value chain, it needs coordination and dynamic management at four levels intelligent designing, intelligent manufacturing, intelligent product-service system, and intelligent management network. Our research systematically discusses the transformation and upgrading path of intelligent manufacturing and the dimension of intelligent manufacturing, which enriches the research on intelligent manufacturing and fills up the research gap. We wish that our research that provide companies with useful managerial insights into management.

How does colonial heritage segment food markets? Evidence from rice consumers in Mauritania

Abstract Reducing Africa's dependence on Asian rice imports requires tailoring local rice products to food markets that are segmented by cultural heritage of ancient rice domestication and colonial heritage of more recent import substitution policies. Using experimental auctions, we examine quality upgrading and branding spillovers from Senegal by assessing the competitiveness of Senegalese vis-à-vis imported Asian rice products in an urban market in Mauritania. The Mauritanian rice market is mainly shaped by colonial heritage and is segmented into (i) elite White Hassanis, (ii) lower caste Black Hassanis, (iii) immigrants with colonial heritage, and (iv) a smaller group of immigrants with cultural heritage. While colonial heritage generally tends to incline consumers towards imported rice, local rice is preferred by Black Hassanis, older and more educated consumers, housewives, and wealthier families. This evidence can support policymakers and value chain actors in their efforts to spill over rice value chain upgrading between the Senegalese and Mauritanian river banks along the Senegal River Valley.

Spatial Spillover Effects of Co-Agglomeration of Producer Services on the Upgrading of Global Value Chain: Evidence from China's Spatial Panel Data

With the rapid development of information technology and transportation, will industrial co-agglomeration present spatial spillover effect on the upgrading of global value chain? This paper studies the effect of co-agglomeration of producer services and manufacturing on the upgrading of global value chain, especially its spatial spillover effect. Results show that a significant spatial correlation exists in the upgrading of global value chain in Chinese cities, and the trends of geographical agglomeration and spatial correlation of the function links of global value chain are strengthened. Furthermore, the co-agglomeration of inter industries has a significant spatial spillover effect on the upgrading of global value chain, which shows that the spatial synergy effect of China's urban secondary and tertiary industries is gradually emerging. Moreover, compared with external radiation spillover effect, the local spillover effect is more obvious, which suggests the significance of constructing mechanism of cross regional industrial cooperation. To accelerate the industrial integration and spatial connection, it is necessary to build a new pattern of multipolar network space development, and strengthen the spatial externality of service provision as well as the upgrading of global value chain.

Animal Spirits of Privatization: Rice Value Chain Upgrading for Malaysia?

The privatization of state-trading enterprises (STEs) is posited as enabling dynamic upgrading. Malaysia has trialled this approach through Padiberas Nasional Berhad (BERNAS) as the lead firm in charge of development in the rice industry. Using published information, this study makes a longitudinal analysis at the structure, conduct, and performance post privatization through the global value chain theory. It shows that the entity has developed from a rice importation monopoly into a virtual monopoly/monopsony in rice value chain stages. In that patronage system, privatization and concentrated market structure have limited upgrading opportunities to their associated partners. Concurrently, it has morphed to a private company. The efficacy of allowing the pillar of national food security to be controlled by a private monopoly needs close examination. Only through that can governments ensure that broader social and development objectives are met, while minimizing the risks associated with both excessive reliance on a particular firm and the abandonment of competition.

Evolution of the Complex Network Topology of Producer Services and the Dynamic Upgrading of Manufacturing Value Chain in Guangdong-Hong Kong-Macao Greater Bay Area

In the context of close integration of economic globalization and of local production networks, the network topology of producer service formed by the linkage between producer service and manufacturing industry has attracted widespread concern. Based on the research perspective of complex network theory, this paper theoretically analyzes the impact mechanism of how the evolution of network topology of producer service promotes the upgrading of manufacturing’s value chain. In addition, taking the Guangdong-Hong Kong-Macao Greater Bay Area as research object, this paper further analyzes the evolution characteristics of network topology, such as the breadth, intensity and centrality of network connection of producer service, so as to identify the interactive efficiency between producer services and the upgrading of manufacturing value chain. Finally, this paper proposes the path of coordinated development of network topology of producer services and manufacturing value chain.

Environmental Upgrading and Downgrading in Global Value Chains: A Framework for Analysis

A key concern of the global value chain (GVC) and global production network (GPN) literature relates to whether and how actors, especially in the Global South, upgrade by generating and capturing more value. To date, such research has predominantly focused on the economic and social aspects of upgrading. In this article, we leverage selected insights from economic geography to advance our understanding of the environmental dimensions of upgrading and downgrading in GVCs and GPNs. We develop an analytical framework that distinguishes the processes of environmental upgrading, in terms of value creation and appropriation, from the resultant outcomes (biophysical manifestations, impacts on market access, and reputation). Furthermore, the framework is considered from the upgrading perspectives of multiple actors instead of focusing only on lead firms and other powerful actors. We illustrate how to apply this framework through a case study of the Kenya–UK horticulture value chains. We show that despite the uptake of environmental upgrading practices, as required by UK supermarkets and transmitted by Kenyan export firms with the facilitation of government agencies, Kenyan farmers have mostly experienced environmental downgrading, with some negative effects also affecting farmers and other resource users beyond the value chain.

The Value of Connectivity: Evolution of Global Shipping Services Networks and the Dynamics of Global Value Chains

With the rapid development of economic globalization, international shipping is playing a more critical role in global economic activities. The original port facilities and service capacity are difficult to adapt to the new situation of international shipping development. How to speed up the construction of interconnected global shipping service network has become an important global issue. Based on the data of shipping services networks and the global value chain of major economies, this paper discusses the impact of global shipping services networks on the dynamics of global value chain of an economy. The empirical result shows that the improving global shipping services network can help to significantly promote the labor division of global value chain. The sub sample test shows that the promoting effect is more significant in the samples of developed economies compared with developing economies. The global shipping services networks can promote the upgrading of global value chain by the channels increasing human capital accumulation and enhancing innovation ability. It is necessary to expand maritime channel, improve inter-modal channel, strengthen shipping service cooperation mechanism between different ports, and build up interconnected and efficient international shipping service networks.

RCEP 협정을 통한 GVC 경쟁력 제고와 가치사슬 고도화에 관한 연구

Purpose : This study analyzes how the Regional Comprehensive Economic Partnership (RCEP) acts as a driving force for value chain upgrading and how it will affect Korea's global value chain (GVC) competitiveness and stabilization of the supply chain. Research design, data and methodology : The number of items per country under the rules of origin under the RCEP and ASEAN+1 FTAs is analyzed. Unification of the rules of origin is analyzed through each FTA standard. A literature review on accumulation is conducted. Results : A unified standard can be achieved for the rules of origin under the RCEP that facilitates exports and stabilizes the supply chain in 15 countries. Through accumulation, the effect of regional exports and market advancement can be seen in small and medium-sized export companies, which was impossible with individual FTA networks. Conclusions : All of these ultimately converge on efficient and stable imports and exports, and are based on the establishment of a more diversified trade structure and value chain upgrading that maximizes trade profits.

Review of smallholder palm oil sustainability reveals limited positive impacts and identifies key implementation and knowledge gaps

‘Sustainable palm oil’ aims to eliminate deforestation, greenhouse gas emissions, land conflicts and labour abuses from palm oil global value chains while maintaining palm oil production as a vehicle for development in tropical countries. However, smallholder palm oil growers are a small minority of those who are certified as sustainable and persistently face multiple socio-economic challenges. We analysed 100 journal articles that address smallholders, oil palm and issues related to sustainability in order to critically examine the current state of evidence for sustainability upgrading in smallholder palm oil global value chains. We identify a focus on sustainability certification in the academic research agenda that has left key implementation and knowledge gaps on meeting smallholders’ needs outside of a certification framework. An implication of this is that buyers, policy-makers, and consumers do not recognise both the challenges and advantages of small-scale agriculture for sustainable palm oil. We found that certification standards struggle to resolve persistent smallholder challenges, such as low incomes, low yields and insecure land tenure. Certification appears to be a flawed method to conceptualize and measure the sustainability of smallholders. We, therefore, advocate broadening approaches to studying sustainability and smallholder palm oil production, particularly to target issues that are of immediate concern for smallholder farmers as opposed to prioritising productivity. Future research should take inspiration from diverse established fields of research in defining sustainable practices, such as agroecology or agroforestry.

Robusta coffee (Coffea canephora) value chain in East Java, Indonesia

Introduction. Coffee plantations are one of the growing agriculture sub-sectors and a high coffee production should be based on proper processing and marketing. Objective. To analyze the updates of products, processes, functions, and upgrading of the robusta coffee value chain in East Java. Materials and methods. This study was conducted in the Robusta coffee plantations in the Bondowoso, Jember, Lumajang, Pasuruan, Malang, and Ngawi districts in East Java, Indonesia, between October 2019 and March 2020. The quota sampling technique was used, followed by surveys and interviews. The number of respondents was 120 people who were actors in the coffee value chain, such as farmers, coffee cherry collectors, coffee cherry grinders, green bean grinders, and consumers. Results. The results showed that product, function, and channel upgrading had a significant effect on the coffee value chain, but the upgrading process did not significantly affect it in several regions on East Java. Conclusions. There is a need for innovation to enhance the coffee value chain in order to deliver future benefits to all stakeholders in this market.

Upgrading in the Automotive Periphery: Turkey's Battery Electric Vehicle Maker Togg

ABSTRACTRestructuring of the automotive industry in the post‐2000 period has led to the emergence of three strata of automotive manufacturing jurisdictions. Core automotive countries host the headquarters of global automakers. They retain most research and development (R&D) and high levels of production. By contrast, integrated peripheries offer low‐cost labour. While increasing levels of vehicle production have gravitated there, they have been unable to attract mandates for knowledge‐intensive portions of the automotive value chain. Finally, semi‐peripheries have neither a home‐grown automaker nor low‐cost labour. Consequently, they have been unable to gain mandates for R&D and struggle to maintain production. Thus, policy makers in non‐core countries consider a range of tools to either retain their position or ‘graduate’ from one category to another. Recently, the demand for battery electric vehicles (BEVs) has given rise to new vehicle manufacturers. Turkey is attempting to develop a BEV automaker and jump from an automotive integrated periphery country to one having a key attribute of an automotive core: a home‐grown automaker. This article reveals and discusses Turkey's generous incentives and assesses the challenges the Turkish BEV entrant will confront, as well as its potential to generate wider economic benefits. The authors also consider the application the Turkey case study has for our understanding of power and upgrading in automotive global value chains.

Competitiveness and upgrading in global value chains: A multiple-country analysis of the wooden furniture industry

The rise of global value chains (GVCs) has increased competition in global markets because of the constantly changing critical success factors which result in shifting comparative advantages. In such a context, countries are increasingly interested in assessing their relative competitiveness in order to better shape policies and business strategies. Going from UN Comtrade data, this paper provides a rich competitive analysis of the wooden furniture industry for 25 nations selected across all income groups and from diverse geographical regions. Balassa's index of Revealed Comparative Advantage (RCA) along with two other competitiveness measures (market share and trade competitiveness) enable to conclude that, most African countries have remained in a position of comparative disadvantage, with no significant improvement over the years. However, Asian countries of different income groups emerged more competitive and act as palpable examples of successful upgrading in this sector. European and American countries on their part, despite exhibiting strong competitive positions, are nonetheless experiencing downward trends. This paper further highlights that, successful upgrading in the wooden furniture value chain can only be made possible by the inevitable interplay of actions by major stakeholders like government and industry actors, as well as individual firms. The findings of this study provide practical and policy implications whose significance span beyond the wooden furniture value chain.

Does green growth foster green policies? Value chain upgrading and feedback mechanisms on renewable energy policies

The expansion of renewable energies not only lowers carbon emissions, it also redistributes resources among actors. This article argues that green industrialization – specifically, manufacturing and the development of renewable energy technologies — creates economic gains that impact political processes and increase renewable energy policy ambition. Building on a combined framework of policy feedback and global value chain literature, we see domestic value creation as a key determinant of coalition strength and learning effects for policymakers. We analyze the relationship of value chain involvement to policy ambition using panel data on countries’ manufacturing and innovation activities in the wind and solar industry from 2010 to 2018. The results show a positive technology policy feedback mechanism, implying that higher local value creation leads to more ambitious renewable energy policies. These first large-N findings support previous case studies on the importance of green growth for raising policy ambition; it implies that transformative policies fostering value creation could create a virtuous cycle for policy ambition. We further propose an interdisciplinary research agenda to shed light on the role of value chain dynamics for policy feedback mechanisms across different political economies.

VALUE CHAIN UPGRADING: EVIDENCE FROM SMOKED FISH AGRIBUSINESS IN CENTRAL JAVA

Smoked fish is one of the processed fish products that provided higer added value. However, there are still great opportunities to increase added value of smoked fish products through upgrading their value chains to make them more competitive and sustainable. This study aims to examine value chain upgrading of the smoked fish in Central Java. The data were obtained from 52 smoked fish value chain actors in Central Java by conducting in-depth interviews. The data was analyzed using a qualitative descriptive analysis of value chain upgrading. The results showed that the smoked fish value chain in Central Java can be upgraded through three upgrading types: product, process, and functional. Product upgrading can be done by using vacuum packaging and food boxes for processors and food stallers respectively. Process upgrading can be done by adopting fish detection technology (for fisherman) and administrative system applications (for wholesalers and traders). Functional upgrading can be improved by implementing direct selling from processors to restaurants and online marketing for retailers. As these upgrading activites will require additional costs, the smoked fish value chain actors need to consider the costs to get higher benefits in the implementation of value chain upgrading for smoked fish in Central Java.

Servicification and global value chain upgrading: empirical evidence from China’s manufacturing industry

We investigate the effect of servicification on global value chain (GVC) upgrading within the context of China’s manufacturing industry. Utilising comprehensive data on manufacturing value-added, we present new evidence for the influence of servicification on the GVC position of the manufacturing industry in China. We find that although domestic and aggregate servicification enhances GVC, foreign servicification curtails the GVCs of manufacturing firms. Our results show that foreign direct investment, capital intensity and institutions are GVC enhancing. At the same time, the increased global market share of the Chinese manufacturing industry has reduced the GVC of manufacturing firms in China. From a policy perspective, the results highlight the need to take cognisance of the heterogeneity of manufacturing firms and the impact of domestic and foreign servicification on the GVC of manufacturing firms in China. Highlights Total servicification and domestic servicification enhanced the GVC position of Chinese manufacturing industry. Foreign servicification worsened the GVC position of Chinese manufacturing industry. Foreign direct investment, capital intensity and institutions are GVC-enhancing, while increased global market share is GVC-impeding. The GFC exacerbated the adverse impact of foreign servicification on the GVC position of Chinese manufacturing industry.