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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.

Suggested Citation

  • Kaplinsky, Raphael & Terheggen, Anne & Tijaja, Julia, 2010. "What happens when the market shifts to China ? the Gabon timber and Thai cassava value chains," Policy Research Working Paper Series 5206, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5206
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    Cited by:

    1. Mintz-Habib, Nazia, 2013. "Malaysian biofuels industry experience: A socio-political analysis of the commercial environment," Energy Policy, Elsevier, vol. 56(C), pages 88-100.
    2. Ferrantino, Michael J., 2012. "Using supply chain analysis to examine the costs of non-tariff measures (NTMs) and the benefits of trade facilitation," WTO Staff Working Papers ERSD-2012-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    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. Marisol Velazquez, 2014. "Commercialization and consumption of coffee in Mexico," ERSA conference papers ersa14p1681, European Regional Science Association.
    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.
    6. Kaplinsky, Raphael, 2011. "Schumacher meets Schumpeter: Appropriate technology below the radar," Research Policy, Elsevier, vol. 40(2), pages 193-203, March.
    7. Kaplinsky, Raphael & Terheggen, Anne & Tijaja, Julia, 2011. "China as a Final Market: The Gabon Timber and Thai Cassava Value Chains," World Development, Elsevier, vol. 39(7), pages 1177-1190, July.
    8. Morris, Mike & Staritz, Cornelia, 2014. "Industrialization Trajectories in Madagascar’s Export Apparel Industry: Ownership, Embeddedness, Markets, and Upgrading," World Development, Elsevier, vol. 56(C), pages 243-257.
    9. Tattara, Giuseppe, 2012. "From competitive advantage to dynamic capabilities: small and medium-sized multinationals in Asia," MPRA Paper 39364, University Library of Munich, Germany.
    10. Terheggen, Anne, 2011. "The tropical timber industry in Gabon: a forward linkages approach to industrialisation," MPRA Paper 37976, University Library of Munich, Germany.
    11. 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: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 339-354, April.
    12. 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.
    13. Bernhardt, Thomas, 2016. "South-South trade and South-North trade: which contributes more to development in Asia and South America? Insights from estimating income elasticities of import demand," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

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    Keywords

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

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