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Global value chains in the least developed countries of the world: threats and opportunities for local producers

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  • Carlo Pietrobelli

Abstract

Global value chains (GVCs) often represent one of the few options for local firms and suppliers in developing countries to get access to larger markets and to new technologies. While the potential benefits from GVCs for medium-income developing countries are well documented, the studies dealing with the impact of GVCs on low-income, poorer countries are scarce. To explore these issues, the paper uses primary and secondary empirical evidence and discusses how GVCs may affect upgrading, technological capabilities and competitiveness in the least developed countries (LDCs). This paper suggests that the opportunities exist, but are hardly utilised, and depend on a number of circumstances that may or may not occur. Public policies have an important role to play to improve the prospects of leveraging these opportunities and raising the probability of a positive effect on local firms. This paper focuses on the prospects of upgrading in natural resource-intensive LDCs from their participation in GVCs, and argues in favour of capacity building for policy formulation and implementation, strengthening the national standards infrastructure, defining the research priorities and disseminating research results to small- and medium-sized enterprises, and suggests that cluster-based development policies may offer better perspectives.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Technological Learning, Innovation and Development.

Volume (Year): 1 (2008)
Issue (Month): 4 ()
Pages: 459-481

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Handle: RePEc:ids:ijtlid:v:1:y:2008:i:4:p:459-481

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Web page: http://www.inderscience.com/browse/index.php?journalID=240

Related research

Keywords: GVCs; global value chains; governance; LDCs; least developed countries; Latin America; SSA; Sub-Saharan Africa; local producers; value chain management; technological upgrading; technological capabilities; competitiveness; public policy; natural resource; national standards; research priorities; research dissemination; small and medium-sized enterprises; SMEs; industrial clusters; regional development.;

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Cited by:
  1. Carlo Pietrobelli, 2009. "Dualism and Power in Agriculture Scientific and Technological Development," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, Associazione Rossi Doria, issue 1, March.
  2. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, Elsevier, vol. 39(7), pages 1261-1269, July.

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