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Can Global Value Chains Effectively Serve Regional Economic Development in Asia?

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Abstract

Regional economic integration through logistics, information network and connectivity improvement can increase the 'virtual size' of an economy as trade with neighboring countries increases. This leads to substantial benefits from scale, network, coordination and agglomeration economies. As is shown, especially in small economies and LDCs, regional economic integration induces the necessary rebalancing needed for integration of the regional portions of Global Value Chains (GVCs) to the global portions of GVCs. This paper demonstrates this with South Asian case studies in GVC development and with the related mapping methodology. This methodology traces a product through an entire channel across a region, from the point of product conception to the point of consumption. As an appropriate set of investment and policy measures is undertaken across a region, it can as we show in the paper, lead to a substantially ‗rebalanced‘ way of income growth.

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  • 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.
    • Handle: RePEc:ris:adbrei:0110
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    Cited by:

    1. Raihan, Selim, 2017. "Enhanced Regional Economic Cooperation through Dealing with NTMs in the BBIN Sub-Region in South Asia: A Political Economy Approach," MPRA Paper 110470, University Library of Munich, Germany.
    2. Vaqar Ahmed & Abid Q. Suleri & Asif Javed, 2015. "Strengthening South Asia Value Chain," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(2_suppl), pages 55-74, September.
    3. 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).

    More about this item

    Keywords

    Rebalancing; spatial distribution of growth; regional economic integration; South Asia; value chains;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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