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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 GuarĂ­n & 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. 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.
    3. 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.
    4. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.
    5. 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.

    More about this item

    Keywords

    Economic Theory&Research; Climate Change Economics; Labor Policies; Emerging Markets; Markets and Market Access;

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