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Participation in global value chains and varieties of development patterns

Author

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  • Bruno Carballa Smichowski
  • Cédric Durand

    (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique)

  • Steven Knauss

Abstract

This paper relates participation in global value chains (GVCs) to development patterns at the country level. It accounts for the diversity and interdependence of development through a crosscountry analysis for 51 countries between 1995 and 2008. We identify three patterns of socioeconomic development related to various degrees and modes of GVC participation: a social upgrading mirage, the reproduction of the core and unequal growth. This result is achieved thanks to the introduction of two new elements to the literature: first, the introduction of new macroeconomic indicators of GVC participation and economic gains that are explicitly based in a theoretically consistent definition of GVCs; second, the identification of a variety of interdependent development patterns related to GVC participation through the use of principal component analysis and cluster analysis.

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  • Bruno Carballa Smichowski & Cédric Durand & Steven Knauss, 2020. "Participation in global value chains and varieties of development patterns," Post-Print hal-02943945, HAL.
    • Handle: RePEc:hal:journl:hal-02943945
    DOI: 10.1093/cje/beaa046
    Note: View the original document on HAL open archive server: https://hal.science/hal-02943945
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    References listed on IDEAS

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    1. Escaith, Hubert, 2008. "Measuring trade in value added in the new industrial economy: statistical implications," MPRA Paper 14454, University Library of Munich, Germany.
    2. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176.
    3. Jesus Felipe & J. S. L. McCombie, 2003. "Some methodological problems with the neoclassical analysis of the East Asian miracle," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(5), pages 695-721, September.
    4. Radetzki,Marian, 2008. "A Handbook of Primary Commodities in the Global Economy," Cambridge Books, Cambridge University Press, number 9780521880206, Junio.
    5. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
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    Cited by:

    1. Vincent FRIGANT, 2019. "Industry 4.0, towards a de-globalization of value chains? Expected effects of advanced industrial robotics and additive manufacturing on the coordination system," Cahiers du GREThA (2007-2019) 2019-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    2. Althouse, Jeffrey & Cahen-Fourot, Louison & Carballa-Smichowski, Bruno & Durand, Cédric & Knauss, Steven, 2023. "Ecologically unequal exchange and uneven development patterns along global value chains," World Development, Elsevier, vol. 170(C).
    3. Petra Dünhaupt & Hansjörg Herr, 2022. "Global Value Chains—A Panacea for Development?," Springer Books, in: Christina Teipen & Petra Dünhaupt & Hansjörg Herr & Fabian Mehl (ed.), Economic and Social Upgrading in Global Value Chains, chapter 0, pages 55-96, Springer.
    4. Ganguly, Arpan & Spinola, Danilo, 2022. "Growth and Distribution regimes under Global Value Chains: Diversification, Integration and Uneven Development," CAFE Working Papers 17, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    5. Stojčić, Nebojša & Matić, Matija, 2024. "A journey toward global value chain upgrading: Exploring the transition from backward to forward integration," Technology in Society, Elsevier, vol. 76(C).
    6. Tristan Auvray & Cédric Durand & Joel Rabinovich & Cecilia Rikap, 2020. "Financialization's conservation and transformation: from Mark I to Mark II," CEPN Working Papers hal-03079425, HAL.
    7. Rikap, Cecilia, 2022. "Becoming an intellectual monopoly by relying on the national innovation system: the State Grid Corporation of China's experience," Research Policy, Elsevier, vol. 51(4).
    8. Hervé Lanotte & Aurélie Ringeval-Deluze & Erick Pruchnicki, 2022. "The stabilising effects on GVCs of multi-annual supply contracts between leading and subordinate firms: The example of champagne [Les effets stabilisateurs sur la CGV des contrats pluriannuels d’ap," Post-Print hal-04021392, HAL.
    9. Iliopoulos, Panagiotis (Takis), 2022. "A quantitative analysis of governance structures in the world economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 599(C).
    10. Tristan Auvray & Cédric Durand & Joel Rabinovich & Cecilia Rikap, 2021. "Corporate financialization’s conservation and transformation: from Mark I to Mark II," Review of Evolutionary Political Economy, Springer, vol. 2(3), pages 431-457, December.
    11. Duarte, Rosa & Espinosa-Gracia, Adrián & Jiménez, Sofía & Sánchez-Chóliz, Julio, 2022. "New insights on the relationship between the involvement of countries in global value chains, and intra- and inter-country inequalities," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 320-329.
    12. Cédric Durand & David Flacher & Vincent Frigant, 2018. "Étudier les chaînes globales de valeur comme une forme d’organisation industrielle," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 13-34.

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    More about this item

    Keywords

    Global value chains; Development; PCA JEL classification: F63;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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