This VoxEU article shows how the fragmentation of production and the new manufacturing bases in developing countries over the past 20 years have increased the ability of countries to respond to the unexpected sudden spikes in demand experienced during the coronavirus crisis.
Duke Professor Gary Gereffi and IMF’s economist Tamim Bayoumi joined DUCIGS Director Giovanni Zanalda in a webinar conversation on the impact of the Covid-19 crisis on international trade and global supply chains. The speakers presented their analysis of the ongoing disruptions of global supply chains, including an overview of how the hyper specialization of supply chains has led to international shortages in vital medical equipment. This event is part of a webinar series on the impact of Covid-19 organized by the Duke Center for International and Global Studies (DUCIGS)/Rethinking Diplomacy Program. Click the button below for more information or view the webinar directly on YouTube: https://youtu.be/O8uonQXB0xc
Abstract: Global value chain research has evolved over the last two decades from a theoretical framework to an applied research approach widely used in industrial organization and development studies to address a myriad of research questions. A key element of conducting such research is establishing a clear, repeatable process to identify and describe the stakeholders and concepts of the analysis across a range of industries and topics. The global value chain (GVC) research approach has two main steps: value chain mapping (identifying who and where) and value chain analysis (the what and why). This chapter focuses on value chain mapping – the process of identifying the structural elements along the value chain, including firms, workers, activities, products, and places. It includes steps and data sources to define the scope of an industry using a combination of international standardized classification systems and insights from existing research and fieldwork. The general approach is presented along with industry-specific examples of how the process has been applied in GVC studies. This chapter was written by Stacey Frederick and appears as Chapter 1 in the Handbook on Global Value Chains.
Duke GVCC collaborated with the Food and Agriculture Organization’s (FAO) Monitoring and Analyzing Food and Agricultural Policies (MAFAP) program and the International Trade Center (ITC) on this project that assessed competitive growth opportunities for selected non-traditional export products from Ghana. The product selection and research strategy followed a three-stage process that integrated quantitative and qualitative analytical approaches: i) comparative advantage and competitiveness analyses of Ghana’s agri-food exports; ii) ranking of comparative advantage of agri-food products; iii) product selection and GVC analysis of the mango sector, as the leading export product, for the identification of policy interventions and commercial alliances for action between value chain operators as well as support institutions.
The research identified productive capability gaps and areas where policy interventions and private alliances were essential to promote competitive growth of non-traditional exports from Ghana. Consensus on the intervention areas was facilitated through presentations of interim and final findings and recommendations in Accra, Ghana.
Stacey Frederick gave a presentation on “GVC Modules and Applications” at the Seminar on Accounting for Global Value Chains in Luxembourg on June 7, 2017. The meeting was organized by the United Nations Expert Group on International Trade and Economic Globalization Statistics (ITEGS).
This research assessed the distribution of value in agri-food GVCs and recommended policy areas where advocacy campaigns should focus to support inclusive growth. The research synthesized quantitative and qualitative analytical approaches. Data from the World Input-Output Database (WIOD) and GVC input-output models were deployed to estimate distribution of value across the agri-food GVCs. Interpretation of the findings and an assessment of drivers of value distribution were conducted by a series of case studies. Selection of case studies were informed by various GVC governance structures linked to product characteristics and consultation with the client. Data and information for the project was collected from various databases, industry reports, journal articles, and interviews key informants. The research identified areas where policy interventions were necessary to address income inequality within the context of agri-food GVCs. The report also highlighted complexities and data challenges facing researchers to effectively measure value distribution in GVCs.
Policymakers are increasingly turning to GVCs as a means of driving development, including generating employment and raising incomes. Access to and benefits from participation in GVCs are closely related to gender issues. The opportunities associated with GVCs differ for men and women as a result of gender-based segregation and constraints that exist to different degrees in all societies. Not seeing these inequalities is problematic from a gender equality perspective and can hinder the broader effectiveness of trade and development policies.
This report presents the asymmetric power relations in global value chains. It examines the limits of private governance and its development implications for local firms and producers in developing countries by drawing on the cases of apparel, cocoa-chocolate, and sugar-‘soft drink’ global value chains.