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What happens when the market shifts to China ? the Gabon timber and Thai cassava value chains

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  • Kaplinsky, Raphael
  • Terheggen, Anne
  • Tijaja, Julia

Abstract

Rapid economic growth in China has boosted its demand for commodities. At the same time, many commodity sectors have experienced declining demand from high-income northern economies. This paper examines two hypotheses of the consequences of this shift in final markets for the organization of global value chains in general, and for the role played in them by southern producers in particular. The first is that there will be a decline in the importance of standards in global value chains. The second is that there will be increasing constraints in the ability of low-income producers to upgrade to higher value niches in their chains. Detailed case studies of the Thai cassava industry and the Gabon timber sector confirm both these hypotheses. It remains to be seen how widespread these trends are across other sectors.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5206.

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Date of creation: 01 Feb 2010
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Handle: RePEc:wbk:wbrwps:5206

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Related research

Keywords: Environmental Economics&Policies; Food&Beverage Industry; Markets and Market Access; Economic Theory&Research; Labor Policies;

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Cited by:
  1. Wenbin Huang & Andreas Wilkes & Xiufang Sun & Anne Terheggen, 2013. "Who is importing forest products from Africa to China? An analysis of implications for initiatives to enhance legality and sustainability," Environment, Development and Sustainability, Springer, vol. 15(2), pages 339-354, April.
  2. Terheggen, Anne, 2011. "The tropical timber industry in Gabon: a forward linkages approach to industrialisation," MPRA Paper 37976, University Library of Munich, Germany.
  3. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
  4. Eba'a Atyi, Richard & Assembe-Mvondo, Samuel & Lescuyer, Guillaume & Cerutti, Paolo, 2013. "Impacts of international timber procurement policies on Central Africa's forestry sector: The case of Cameroon," Forest Policy and Economics, Elsevier, vol. 32(C), pages 40-48.
  5. Bernhardt, Thomas, 2014. "How promising is South-South trade as a contributor to economic development in Asia and South America? Insights from estimating income elasticities of import demand," MPRA Paper 56413, University Library of Munich, Germany.

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