{"title":"Acknowledgments","authors":"","doi":"10.30875/faabd6ab-en","DOIUrl":"https://doi.org/10.30875/faabd6ab-en","url":null,"abstract":"","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121514558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Executive summary","authors":"","doi":"10.30875/05800ad8-en","DOIUrl":"https://doi.org/10.30875/05800ad8-en","url":null,"abstract":"","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"80 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134413974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The reorganization of supply chains using advanced technologies, such as the Internet of Things (IoT), big data analytics, and autonomous robotics, is transforming the model of supply chain management from a linear one, in which instructions flow from supplier to producer to distributor to consumer, and back, to a more integrated model in which information flows in an omnidirectional manner to the supply chain. While e-commerce is uniquely suited to many of these techniques, they also hold the promise of improving efficiency in brickand-mortar stores. These technologies are generating enormous benefits through reducing costs, making production more responsive to consumer demand, boosting employment (employment in supply chain sectors where such technologies are most likely to be applied has grown much more rapidly than in other supply chain sectors and in the economy as a whole) and saving consumers’ time. The impact of these technologies on the length of supply chains is uncertain: they may reduce the length of supply chains by encouraging the reshoring of manufacturing production to high-income economies, thus reducing opportunities for developing countries to participate in GVCs, or they may strengthen GVCs by reducing coordination and matching costs. • Digital technologies are transforming supply chain management from a linear model in which instructions flow from supplier to producer to distributor to consumer, and back, to a more integrated model in which information flows in multiple directions (sometimes referred to as Supply Chain 4.0). • Digital technologies offer huge benefits in terms of inclusive patterns of growth, innovation and entrepreneurial opportunities • The impact of new digital technologies on GVCs is uncertain: they may reduce the length of supply chains by encouraging the reshoring of manufacturing production, thus reducing opportunities for developing countries to participate in GVCs, or they may strengthen GVCs by reducing coordination and matching costs. * We are grateful for helpful comments by Gary Hufbauer, Satoshi Inomata, Kalina Manova, William Shaw, Emmanuelle Ganne, and Lauren Deason. All errors and omissions remain the responsibility of the authors. 104 • Technological innovation, supply chain trade, and workers in a globalized world
{"title":"Understanding Supply Chain 4.0 and its potential impact on global value chains","authors":"M. Ferrantino","doi":"10.30875/10529e69-en","DOIUrl":"https://doi.org/10.30875/10529e69-en","url":null,"abstract":"The reorganization of supply chains using advanced technologies, such as the Internet of Things (IoT), big data analytics, and autonomous robotics, is transforming the model of supply chain management from a linear one, in which instructions flow from supplier to producer to distributor to consumer, and back, to a more integrated model in which information flows in an omnidirectional manner to the supply chain. While e-commerce is uniquely suited to many of these techniques, they also hold the promise of improving efficiency in brickand-mortar stores. These technologies are generating enormous benefits through reducing costs, making production more responsive to consumer demand, boosting employment (employment in supply chain sectors where such technologies are most likely to be applied has grown much more rapidly than in other supply chain sectors and in the economy as a whole) and saving consumers’ time. The impact of these technologies on the length of supply chains is uncertain: they may reduce the length of supply chains by encouraging the reshoring of manufacturing production to high-income economies, thus reducing opportunities for developing countries to participate in GVCs, or they may strengthen GVCs by reducing coordination and matching costs. • Digital technologies are transforming supply chain management from a linear model in which instructions flow from supplier to producer to distributor to consumer, and back, to a more integrated model in which information flows in multiple directions (sometimes referred to as Supply Chain 4.0). • Digital technologies offer huge benefits in terms of inclusive patterns of growth, innovation and entrepreneurial opportunities • The impact of new digital technologies on GVCs is uncertain: they may reduce the length of supply chains by encouraging the reshoring of manufacturing production, thus reducing opportunities for developing countries to participate in GVCs, or they may strengthen GVCs by reducing coordination and matching costs. * We are grateful for helpful comments by Gary Hufbauer, Satoshi Inomata, Kalina Manova, William Shaw, Emmanuelle Ganne, and Lauren Deason. All errors and omissions remain the responsibility of the authors. 104 • Technological innovation, supply chain trade, and workers in a globalized world","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"31 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"113933708","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Taking advantage of a new accounting method to decompose GDP production into pure domestic production, traditional trade, simple and complex GVC activities, this chapter examines recent trends in global value chain (GVC) activities across the world. Our main findings show that the pace of GVC activities picked up in 2017 after a period of slow down since 2012; intra-North American and intra-European GVC activities declined relative to inter-regional transactions due to higher penetration via Factory Asia but value chains still remain largely regional; China is increasingly playing an important role as both a supply and demand hub in traditional trade and simple GVC networks, although the US and Germany are still the most important hubs in complex GVC networks; bilateral trade balances are significantly affected by the supply and demand of third countries; and net imports are no longer a proper measure of the impact of international trade on the domestic economy in the age of GVCs. • The growth of global value chains has slowed since the 2008-09 Global Financial Crisis but has not stopped. From 2000 to 2007, global value chains (GVCs), especially complex ones, expanded at a faster rate than GDP. During the global financial crisis there was naturally some retrenchment of GVCs, followed by quick recovery (2010-2011), but since then growth has mostly slowed. However, most recent data for 2017 show that complex GVCs grew faster than GDP. • Value chains remain largely regional but they are not static. Between 2000 and 2017, intra-regional GVC trade increased in “Factory Asia” reflecting, in part, upgrading by China and other Asian economies. In contrast, intra-regional GVC trade in “Factory Europe” and “Factory North America” decreased slightly relative to inter-regional GVC trade reflecting stronger linkages with “Factory Asia”. • China has emerged as an important hub in traditional trade and simple GVC networks, but the United States and Germany remain the most important hubs in complex GVC networks. 10 • Technological innovation, supply chain trade, and workers in a globalized world Global value chains, where firms specialize in a particular set of activities in one country to produce parts and components for other countries, have spread the production process across countries; their share of world production and trade has expanded greatly over the past three decades. In the years immediately after the global financial crisis, however, the expansion of GVCs significantly slowed, according to GVC production measures reported in the 2017 GVC development report. At the same time, the world has seen the emergence of populist, protectionist movements in many advanced countries. The looming trade tension between the United States and its major trading partners, especially China, the second largest economy in the world, will have significant consequences for growth opportunities in developing countries, but also, in a world of high levels of interdependenc
{"title":"Recent patterns of global production and GVC participation","authors":"Xin Li","doi":"10.30875/6aa1a271-en","DOIUrl":"https://doi.org/10.30875/6aa1a271-en","url":null,"abstract":"Taking advantage of a new accounting method to decompose GDP production into pure domestic production, traditional trade, simple and complex GVC activities, this chapter examines recent trends in global value chain (GVC) activities across the world. Our main findings show that the pace of GVC activities picked up in 2017 after a period of slow down since 2012; intra-North American and intra-European GVC activities declined relative to inter-regional transactions due to higher penetration via Factory Asia but value chains still remain largely regional; China is increasingly playing an important role as both a supply and demand hub in traditional trade and simple GVC networks, although the US and Germany are still the most important hubs in complex GVC networks; bilateral trade balances are significantly affected by the supply and demand of third countries; and net imports are no longer a proper measure of the impact of international trade on the domestic economy in the age of GVCs. • The growth of global value chains has slowed since the 2008-09 Global Financial Crisis but has not stopped. From 2000 to 2007, global value chains (GVCs), especially complex ones, expanded at a faster rate than GDP. During the global financial crisis there was naturally some retrenchment of GVCs, followed by quick recovery (2010-2011), but since then growth has mostly slowed. However, most recent data for 2017 show that complex GVCs grew faster than GDP. • Value chains remain largely regional but they are not static. Between 2000 and 2017, intra-regional GVC trade increased in “Factory Asia” reflecting, in part, upgrading by China and other Asian economies. In contrast, intra-regional GVC trade in “Factory Europe” and “Factory North America” decreased slightly relative to inter-regional GVC trade reflecting stronger linkages with “Factory Asia”. • China has emerged as an important hub in traditional trade and simple GVC networks, but the United States and Germany remain the most important hubs in complex GVC networks. 10 • Technological innovation, supply chain trade, and workers in a globalized world Global value chains, where firms specialize in a particular set of activities in one country to produce parts and components for other countries, have spread the production process across countries; their share of world production and trade has expanded greatly over the past three decades. In the years immediately after the global financial crisis, however, the expansion of GVCs significantly slowed, according to GVC production measures reported in the 2017 GVC development report. At the same time, the world has seen the emergence of populist, protectionist movements in many advanced countries. The looming trade tension between the United States and its major trading partners, especially China, the second largest economy in the world, will have significant consequences for growth opportunities in developing countries, but also, in a world of high levels of interdependenc","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"45 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128185476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Trade, value chains and labor markets in advanced economies","authors":"","doi":"10.30875/3f8e6f32-en","DOIUrl":"https://doi.org/10.30875/3f8e6f32-en","url":null,"abstract":"","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134589320","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Global value chains make it easier for developing countries to move away from export reliance on unprocessed primary products to become exporters of manufactures and services. Global value chains (GVCs) allow countries to specialize in a particular activity and join a global production network. As a developing country moves from export of primary products to export of manufactures and services via GVCs, the ratio of domestic value added to gross export value tends to fall. Many developing country policy-makers worry about this trend and aspire to increase their value added contribution to exports. There are a number of reasons why this objective is not good policy. It may seem like simple math that a higher domestic value added share means more total value added exported and hence more GDP. But that simple idea ignores the reality that imported goods and services are a key support to a country’s competitiveness. The chapter documents this via the history of the successful East Asian industrializers as well as more recent evidence from Association of Southeast Asian Nations (ASEAN) economies. If a country artificially replaces key inputs with inferior domestic versions, the end result is likely to be fewer gross exports and less, not more, total value added exports. Should high domestic value added in exports be an objective of policy? David Dollar (Brookings Institution), Bilal Khan (RCGVC-UIBE), and Jiansuo Pei (SITE-UIBE) • In almost all countries, developed and developing alike, the share of domestic value added in exports has tended to trend downwards recently. This reflects the expansion of global value chains. • Many developing countries worry about this phenomenon and aspire to increase their value-added contribution to exports. This objective should be approached cautiously. Imported goods and services are a key support to a country’s competitiveness. If a country artificially replaces key inputs with inferior domestic versions, the result is likely to be fewer gross exports and fewer, not more, total value-added exports. • China’s recent experience is often given as an important counter-example, since its domestic valueadded ratio has been rising over the past decade, but our research indicates that this trend is primarily the result of technological advances in China. • Consequently, the Chinese ratio can be expected to peak and later decline if China further opens up and follows in the steps of other earlier Asian industrializers, such as Japan and the Republic of Korea. 142 • Technological innovation, supply chain trade, and workers in a globalized world
{"title":"Should high domestic value added in exports be an objective of policy?","authors":"David L. Dollar","doi":"10.30875/0a2c5fe2-en","DOIUrl":"https://doi.org/10.30875/0a2c5fe2-en","url":null,"abstract":"Global value chains make it easier for developing countries to move away from export reliance on unprocessed primary products to become exporters of manufactures and services. Global value chains (GVCs) allow countries to specialize in a particular activity and join a global production network. As a developing country moves from export of primary products to export of manufactures and services via GVCs, the ratio of domestic value added to gross export value tends to fall. Many developing country policy-makers worry about this trend and aspire to increase their value added contribution to exports. There are a number of reasons why this objective is not good policy. It may seem like simple math that a higher domestic value added share means more total value added exported and hence more GDP. But that simple idea ignores the reality that imported goods and services are a key support to a country’s competitiveness. The chapter documents this via the history of the successful East Asian industrializers as well as more recent evidence from Association of Southeast Asian Nations (ASEAN) economies. If a country artificially replaces key inputs with inferior domestic versions, the end result is likely to be fewer gross exports and less, not more, total value added exports. Should high domestic value added in exports be an objective of policy? David Dollar (Brookings Institution), Bilal Khan (RCGVC-UIBE), and Jiansuo Pei (SITE-UIBE) • In almost all countries, developed and developing alike, the share of domestic value added in exports has tended to trend downwards recently. This reflects the expansion of global value chains. • Many developing countries worry about this phenomenon and aspire to increase their value-added contribution to exports. This objective should be approached cautiously. Imported goods and services are a key support to a country’s competitiveness. If a country artificially replaces key inputs with inferior domestic versions, the result is likely to be fewer gross exports and fewer, not more, total value-added exports. • China’s recent experience is often given as an important counter-example, since its domestic valueadded ratio has been rising over the past decade, but our research indicates that this trend is primarily the result of technological advances in China. • Consequently, the Chinese ratio can be expected to peak and later decline if China further opens up and follows in the steps of other earlier Asian industrializers, such as Japan and the Republic of Korea. 142 • Technological innovation, supply chain trade, and workers in a globalized world","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121467010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The emergence of global value chains – whereby goods that used to be produced within one country are now fragmented and distributed across global networks of production – has offered developing countries new opportunities to integrate into the global economy. This has also had fundamental impacts for workers in developing countries. The chapter shows that higher earnings and employment within sectors and firms is associated with GVC integration, which also supports other spillovers that operate through labor markets. But it has also had distributional implications of where jobs go and the types of jobs they are. Jobs growth has occurred directly in the export sector, as well as indirectly through linkages of exporting firms to domestic, input-supplying firms. Employment creation and wage gains have been biased towards more skilled workers in developing countries, which contrasts with the predictions of trade theory. The skill-biased nature of GVC trade is associated with increased complexity of global supply chains as well as increased use of skill-intensive inputs, notably services. New emerging trends, including automation and digitization, may further determine how employment in developing countries will be affected by GVC trade in the future. The findings point to education as well as trade and labor policies as important factors for strengthening the GVC-labor relationship. • The emergence of GVCs has offered developing countries opportunities to integrate into the global economy, which has had a significant impact on jobs and income in GVC sectors and firms. Integration can have additional benefits for the wider economy as most jobs are generated through upstream domestic supply chains. • Across the developing world, demand for skilled labor is rising. GVCs reinforce this trend by supporting more complex industrial organization and by relying on complementary skill-intensive services inputs. • The impacts of technological change and increased productivity on employment linked to GVCs have been offset by growing consumer demand. 64 • Technological innovation, supply chain trade, and workers in a globalized world
{"title":"Global value chains and employment in developing economies","authors":"C. Hollweg","doi":"10.30875/503c185b-en","DOIUrl":"https://doi.org/10.30875/503c185b-en","url":null,"abstract":"The emergence of global value chains – whereby goods that used to be produced within one country are now fragmented and distributed across global networks of production – has offered developing countries new opportunities to integrate into the global economy. This has also had fundamental impacts for workers in developing countries. The chapter shows that higher earnings and employment within sectors and firms is associated with GVC integration, which also supports other spillovers that operate through labor markets. But it has also had distributional implications of where jobs go and the types of jobs they are. Jobs growth has occurred directly in the export sector, as well as indirectly through linkages of exporting firms to domestic, input-supplying firms. Employment creation and wage gains have been biased towards more skilled workers in developing countries, which contrasts with the predictions of trade theory. The skill-biased nature of GVC trade is associated with increased complexity of global supply chains as well as increased use of skill-intensive inputs, notably services. New emerging trends, including automation and digitization, may further determine how employment in developing countries will be affected by GVC trade in the future. The findings point to education as well as trade and labor policies as important factors for strengthening the GVC-labor relationship. • The emergence of GVCs has offered developing countries opportunities to integrate into the global economy, which has had a significant impact on jobs and income in GVC sectors and firms. Integration can have additional benefits for the wider economy as most jobs are generated through upstream domestic supply chains. • Across the developing world, demand for skilled labor is rising. GVCs reinforce this trend by supporting more complex industrial organization and by relying on complementary skill-intensive services inputs. • The impacts of technological change and increased productivity on employment linked to GVCs have been offset by growing consumer demand. 64 • Technological innovation, supply chain trade, and workers in a globalized world","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"323 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115476236","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The use of global input-output tables, and the creation of Trade in Value-Added (TiVA) statistics, has greatly improved our understanding of the fragmentation of global production through value chains. However, their application requires a number of assumptions that, in practice, typically understate the degree of interconnectedness. TiVA estimates implicitly assume identical production functions across firms within an industry, when in reality production functions differ considerably. Typically, larger (and foreign-owned) firms tend to be more trade oriented than smaller (and domestically-owned) firms. As a result, TiVA statistics underestimate the import content of exports for the economy as a whole, a key indicator characterizing global production. Moreover, TiVA analyses are based on basic price concepts, which provide an appropriate view of production through value chains, but are less well equipped to analyse consumption, particularly as they exclude significant distribution margins (in particular retail and wholesale activities, often including marketing activities and brands), which add value at the end of the chain. This can distort analyses using “smile curves”, which show the distance from final demand of different sectors within value chains, and in turn understate the scale of jobs supported by trade. • Trade in Value-Added (TiVA) statistics have greatly improved our understanding of GVCs, but they use assumptions that generate typically downward biases in measures of GVC integration, and they give little information regarding the investment strand of GVCs. • Efforts to mainstream key characteristics of different types of firms in the production of tomorrow’s TiVA models, through extended supply-use tables, should be prioritized, to improve not only their relevance, but also their quality. • Efforts to complement TiVA estimates currently based on basic prices with estimates based on market prices should also be initiated, not only to ease interpretability, but also to highlight the significant role played by distributors and to better understand the role played by intellectual property. Market-based approaches, for example, reveal that 9 million jobs are sustained in the United States through sales of imports. 156 • Technological innovation, supply chain trade, and workers in a globalized world
{"title":"Improving the accounting frameworks for analyses of global value chains","authors":"Nadīm Aḥmad","doi":"10.30875/37edc817-en","DOIUrl":"https://doi.org/10.30875/37edc817-en","url":null,"abstract":"The use of global input-output tables, and the creation of Trade in Value-Added (TiVA) statistics, has greatly improved our understanding of the fragmentation of global production through value chains. However, their application requires a number of assumptions that, in practice, typically understate the degree of interconnectedness. TiVA estimates implicitly assume identical production functions across firms within an industry, when in reality production functions differ considerably. Typically, larger (and foreign-owned) firms tend to be more trade oriented than smaller (and domestically-owned) firms. As a result, TiVA statistics underestimate the import content of exports for the economy as a whole, a key indicator characterizing global production. Moreover, TiVA analyses are based on basic price concepts, which provide an appropriate view of production through value chains, but are less well equipped to analyse consumption, particularly as they exclude significant distribution margins (in particular retail and wholesale activities, often including marketing activities and brands), which add value at the end of the chain. This can distort analyses using “smile curves”, which show the distance from final demand of different sectors within value chains, and in turn understate the scale of jobs supported by trade. • Trade in Value-Added (TiVA) statistics have greatly improved our understanding of GVCs, but they use assumptions that generate typically downward biases in measures of GVC integration, and they give little information regarding the investment strand of GVCs. • Efforts to mainstream key characteristics of different types of firms in the production of tomorrow’s TiVA models, through extended supply-use tables, should be prioritized, to improve not only their relevance, but also their quality. • Efforts to complement TiVA estimates currently based on basic prices with estimates based on market prices should also be initiated, not only to ease interpretability, but also to highlight the significant role played by distributors and to better understand the role played by intellectual property. Market-based approaches, for example, reveal that 9 million jobs are sustained in the United States through sales of imports. 156 • Technological innovation, supply chain trade, and workers in a globalized world","PeriodicalId":296231,"journal":{"name":"Global Value Chain Development Report 2019","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114177294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The nature of technology used in products plays a major role in determining the governance structure of value chains and the benefits of participation for developing countries. Standardization through breaking production into modules with a high degree of functional autonomy (limited mutual interference between modules) can dramatically reduce the amount of research and development (R&D), learning by doing, and the number of complementary skills needed to produce a good. This greatly increases opportunities for developing country firms to participate in formerly capital-intensive industries through reducing entry costs into global value chains. However, widespread access to standardized products with little ability to modify technical features can lead to an excessive supply of homogeneous products in a local market, resulting in intense price competition and limited technology transfer. By contrast, technology that facilitates scope for product modification and greater interaction with technology owners can help boost technology transfer and product upgrading by developing country firms. The chapter illustrates this interaction between changes in technology and opportunities for developing countries through developments in the automotive and mobile phone handset industries, with a particular reference to China’s growth experience. It also finds that automation is likely to have only a limited impact on developing countries’ opportunities to participate in value chains through the offshoring of production by high-income countries, at least in the short term. • Policies for helping domestically owned firms become technologically standalone – what some might refer to as “techno-nationalism” – do not necessarily help countries move into higher valueadded production within GVCs. Instead, policymakers should encourage firms to be full partners in global technology ecosystems and to pursue open source innovation solutions. • Automation might become a threat to developing country employment in the long term if consumption does not increase fast enough to generate sufficient additional labor demand to offset the labor-saving impact of technological change. In the short term, however, automation will not dramatically reduce the attractiveness of low-wage destinations, especially for labor-intensive tasks that require human dexterity, such as in the apparel industry. • While automation does not pose immediate risks, governments need to develop a comprehensive digital strategy to maximize the gains from GVCs. * This chapter draws from background studies and ongoing research collaboration with the following researchers: Chiara Criscuolo, Yoshihiro Hashiguchi, Keiko Ito, Jonathan Timmis, Ke Ding, Shiro Hioki, Mai Fujita, Tim Sturgeon, Eric Thun, Yuqing Xing, Satoshi Nakano, Kazuhiko Nishimura and Jiyoung Kim. 84 • Technological innovation, supply chain trade, and workers in a globalized world
产品中使用的技术的性质在决定价值链的治理结构和发展中国家参与的利益方面发挥着重要作用。通过将生产分解为具有高度功能自治(模块之间的相互干扰有限)的模块进行标准化，可以显著减少研究和开发(R&D)的数量、边做边学以及生产产品所需的互补技能的数量。通过降低进入全球价值链的成本，这大大增加了发展中国家企业参与以前资本密集型产业的机会。但是，广泛使用几乎没有能力修改技术特征的标准化产品可能导致当地市场上同质产品供应过剩，从而造成激烈的价格竞争和有限的技术转让。相比之下，促进产品修改范围和与技术所有者更大互动的技术可以帮助促进发展中国家公司的技术转让和产品升级。本章通过汽车和手机行业的发展说明了技术变化与发展中国家机遇之间的相互作用，并特别提到了中国的增长经验。报告还发现，至少在短期内，自动化可能只会对发展中国家通过高收入国家的生产外包参与价值链的机会产生有限的影响。•帮助国内企业在技术上独立的政策——有些人可能称之为“技术民族主义”——并不一定有助于各国在全球价值链中转向更高附加值的生产。相反，政策制定者应该鼓励企业成为全球技术生态系统的全面合作伙伴，并寻求开源创新解决方案。•如果消费增长速度不够快，不足以产生足够的额外劳动力需求，以抵消技术变革带来的节省劳动力的影响，自动化可能会对发展中国家的就业构成长期威胁。然而，在短期内，自动化不会显著降低低工资目的地的吸引力，特别是对于需要人类灵巧的劳动密集型任务，比如服装行业。•虽然自动化不会立即带来风险，但政府需要制定全面的数字战略，以最大限度地提高全球价值链的收益。*本章从背景研究和正在进行的研究合作与以下研究人员:Chiara Criscuolo, Yoshihiro Hashiguchi, Keiko Ito, Jonathan Timmis, Ke Ding, Shiro Hioki, Mai Fujita, Tim Sturgeon, Eric Thun, Yuqing Xing, Satoshi Nakano, Kazuhiko Nishimura和Jiyoung Kim。84•技术创新，供应链贸易和全球化世界中的工人
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Although small and medium-sized enterprises (SMEs) represent the vast majority of firms worldwide, their participation in international trade remains limited relative to their share of overall economic activity and employment as compared to large firms. The rise of the digital economy could, however, open a range of new opportunities for small firms to play a more active role in global value chains (GVCs). This chapter reviews evidence of SME participation in international trade and production networks and looks at how the digitalization of our economies is already affecting, or could affect future, SME contributions to GVCs. New research by Lanz et al. (2018) finds evidence that digitally-connected SMEs in developing countries tend to import a higher share of their inputs than non-digitally-connected firms. Additionally, it is shown that this positive digital effect is greater for SMEs than it is for large firms. The chapter reviews the various opportunities that the digital economy opens for SMEs, especially in terms of cost reductions and the emergence of new business models, but also discusses policy measures that could be taken to promote SME participation in GVCs. Indeed, significant challenges remain for SMEs to enter GVCs, some of which are exacerbated by the new digital economy. A holistic approach that combines investment in ICT infrastructure and human capital with trade policy measures and measures to improve the business environment, access to finance and logistics, and promote innovation and R&D is necessary. Improving the availability of data would also help to better understand and integrate SMEs in GVCs. • Although small and medium-sized enterprises (SMEs) represent the vast majority of firms worldwide, their participation in international trade remains limited relative to their share of overall economic activity and employment as compared to large firms. • The rise of the digital economy could, however, open a range of new opportunities for small firms to play a more active role in global value chains (GVCs). • New research finds that when a manufacturing SME has a website, this facilitates its participation in GVCs and trade. In particular, such SMEs are more likely to use foreign inputs for production and export their output. Further, information and communication technology (ICT) connectivity is found to be more important for small firms than for large ones in whether or not a firm participates in trade. • However, SMEs continue to face important challenges when integrating into GVCs. A holistic approach that combines investment in ICT infrastructure and human capital with trade policy measures and with measures to improve the business environment and access to finance and logistics, and promote innovation and R&D, is necessary. • Improving the availability of data would also help to better understand and integrate SMEs in GVCs. 122 • Technological innovation, supply chain trade, and workers in a globalized world
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