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What are the implications for global value chains when the market shifts from the north to the south ?

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  • Kaplinsky, Raphael
  • Farooki, Masuma

Abstract

Rapid growth in many low-income economies was fuelled by the insertion of producers into global value chains feeding into high-income northern markets. This paper charts the evolution of financial and economic crisis in the global economy and argues that the likely outcome will be sustained growth in the two very large Asian Driver economies of China and India and stagnation in the historically dominant northern economies. Given the nature of demand in low-income southern economies, it is likely to be reflected in sustained demand for commodities, with other southern economy producers in global value chains being forced into lower levels of value added. Standards are likely to be of considerably reduced significance in value chains feeding into China and India.

Suggested Citation

  • Kaplinsky, Raphael & Farooki, Masuma, 2010. "What are the implications for global value chains when the market shifts from the north to the south ?," Policy Research Working Paper Series 5205, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5205
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    Citations

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    Cited by:

    1. Alejandro Guar�n & Peter Knorringa, 2014. "New Middle-Class Consumers in Rising Powers: Responsible Consumption and Private Standards," Oxford Development Studies, Taylor & Francis Journals, vol. 42(2), pages 151-171, June.
    2. Loe Franssen, 2020. "Capturing Value in South–South and South–North Value Chains: Evidence from East Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 939-975, September.
    3. Sabina Koleša, 2018. "Global Value Chains: Government Policies for Enhancing the Role of Small and Medium Enterprises in Global Value Chains – A Case Study of Slovenia," Management, University of Primorska, Faculty of Management Koper, vol. 13(1), pages 49-70.
    4. Natalie J. Langford, 2021. "From Global to Local Tea Markets: The Changing Political Economy of Tea Production within India's Domestic Value Chain," Development and Change, International Institute of Social Studies, vol. 52(6), pages 1445-1472, November.
    5. E. Ya. Ostrovskaya & I. A. Manuylov, 0. "EEU in global value chains: limits and paths to insertion," International Trade and Trade Policy, ФГБОУ ВО "Ð Ð¾Ñ Ñ Ð¸Ð¹Ñ ÐºÐ¸Ð¹ Ñ ÐºÐ¾Ð½Ð¾Ð¼Ð¸Ñ‡ÐµÑ ÐºÐ¸Ð¹ ÑƒÐ½Ð¸Ð²ÐµÑ€Ñ Ð¸Ñ‚ÐµÑ‚ им. Г.Ð’. Плеханова", issue 2.
    6. Carlo Altomonte & Filippo Di Mauro & Gianmarco I. P. Ottaviano & Armando Rungi & Vincent Vicard, 2012. "Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?," CEP Discussion Papers dp1131, Centre for Economic Performance, LSE.
    7. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    8. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.
    9. Linda Annala Tesfaye & Martin Fougère, 2022. "Frugal Innovation Hijacked: The Co-optive Power of Co-creation," Journal of Business Ethics, Springer, vol. 180(2), pages 439-454, October.
    10. Ivan Montiel & Petra Christmann & Trevor Zink, 2019. "The Effect of Sustainability Standard Uncertainty on Certification Decisions of Firms in Emerging Economies," Journal of Business Ethics, Springer, vol. 154(3), pages 667-681, February.
    11. Fikru, Mahelet G., 2016. "Determinants of International Standards in sub-Saharan Africa: The role of institutional pressure from different stakeholders," Ecological Economics, Elsevier, vol. 130(C), pages 296-307.
    12. Lema, Rasmus & Berger, Axel & Schmitz, Hubert, 2012. "China’s impact on the global wind power industry," IDOS Discussion Papers 16/2012, German Institute of Development and Sustainability (IDOS).
    13. Bloom, Gerald & Wolcott, Sara, 2013. "Building institutions for health and health systems in contexts of rapid change," Social Science & Medicine, Elsevier, vol. 96(C), pages 216-222.

    More about this item

    Keywords

    Economic Theory&Research; Climate Change Economics; Labor Policies; Emerging Markets; Markets and Market Access;
    All these keywords.

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