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Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges

Author

Listed:
  • Debapriya Bhattacharya
  • Khondaker Golam Moazzem

Abstract

The present paper, based on a review of available literature and empirical evidence, has pointed out that the opportunities for the least developed countries (LDCs) to participate in the global values chains (GVCs) are expanding discernibly. However, the analyses show that the LDCs remain greatly handicapped in exploiting the full potential that the GVCs offer them due to their participation in low-value segment as well as the assymetric global governance structure of the value chains. Segment-specific analyses of participation in specific products indicate that the LDCs are facing multi-faceted challenges in the GVC process in terms of the production process, logistical and infrastructural requirements as well as complicated business processes. The paper has suggested some supportive measures, adoption of which could strengthen the position of the LDCs in GVCs, particularly in areas such as building productive capacity, development of trade-related infrastructure, access to inputs and logistical services, strengthening trade and industrial policies, and social upgrading.

Suggested Citation

  • Debapriya Bhattacharya & Khondaker Golam Moazzem, 2013. "Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges," CPD Working Paper 104, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:104
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    File URL: https://cpd.org.bd/wp-content/uploads/2013/08/WP-104.pdf
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    References listed on IDEAS

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    1. Dirk WILLENBOCKEL & Sherman ROBINSON, "undated". "The Global Financial Crisis, LDC Exports and Welfare: Analysis with a World Trade Model," EcoMod2009 21500092, EcoMod.
    2. Humphrey, John,, 2004. "Upgrading in global value chains," ILO Working Papers 993698523402676, International Labour Organization.
    3. Alessandro Nicita & Victor Ognivtsev & Miho Shirotori, 2013. "Global Supply Chains: Trade And Economic Policies For Developing Countries," UNCTAD Blue Series Papers 55, United Nations Conference on Trade and Development.
    4. repec:pra:mprapa:15377 is not listed on IDEAS
    5. Lall, Sanjaya & Narula, Rajneesh, 2004. "FDI and its role in economic development: Do we need a new agenda?," Research Memorandum 019, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    6. Brunner, Hans-Peter, 2013. "Can Global Value Chains Effectively Serve Regional Economic Development in Asia?," Working Papers on Regional Economic Integration 110, Asian Development Bank.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Pushp, Pushkar & Ahmed, Faisal, 2023. "The global value chain: Challenges faced by ASEAN least developed countries," Journal of Policy Modeling, Elsevier, vol. 45(6), pages 1223-1245.

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    Keywords

    LDCs; global value chains; business process; social upgradation;
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