Contents of the volume

2019, Volume 72 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 04 November 2019

1948-2018: FROM THE FREE-TRADE VISION TO PROTECTIONIST ATTITUDE

Nicola Acocella

Read the article

THE SUPPLY CHAIN ECONOMY: HOW FAR DOES IT SPREAD IN SPACE AND TIME?

Miroslav N. Jovanovic

Read the article

DISSECTING THE INPUT-OUTPUT STRUCTURE OF THE GREEK ECONOMY 2005-2010

Theodore Mariolis, Eirini Leriou, George Soklis

Read the article

TESTING FOR FINANCIAL MARKET INTEGRATION OF THE UAE MARKET WITH THE GLOBAL MARKET

Abdulnasser Hatemi-J, Safa Al-Mohana

Read the article

TESTING FOR CONVERGENCE IN PER CAPITA INCOME WITHIN ECOWAS

Emmanuel Anoruo

Read the article

DOES CORRUPTION HAMPER INWARD FDI IN SOUTH AFRICA FROM OTHER AFRICAN COUNTRIES? A GRAVITY MODEL ANALYSIS

Teboho Jeremiah Mosikari, Joel H. Eita, T. Confidence Nthebe

Read the article

ACKNOWLEDGEMENT TO REFEREES

Amedeo Amato

Read the article

Genoa Chamber of Commerce
Economia Internazionale / International Economics

< Back

Corresponding author

Miroslav N. JOVANOVIC, Global Studies Institute, University of Geneva, Switzerland

The Supply Chain Economy: How far does it Spread in Space and Time?

Pages

393-452

Abstract

The supply chain economy provides grounds for a non-linear economic leapfrog start in development. Rather than specializing in the whole production procedure, the new model enables specialization in production segments. All process links are related and must be of an identical high standard. The differential treatment of developing countries is therefore not acceptable in this economic model. Statistics provision and trade policy need to change. Duties must be either eliminated or applied on a value-added basis. A new wave of protectionism is testing the spread of the supply chain economy. Three-dimensional printing may pose a challenge to the length and future spread of value chains.

JEL classification

F01, F10, F13, F15, F23, L23, O14, O25, O31

Keywords

Global Value Chain, Fragmentation, Unbundling, Offshoring, Trade, Standards, Integration, 3D Printing

Index

  1. Introduction
  2. Origin
  3. Concept
  4. Contour
  5. Standards
  6. Governance
  7. Where is the nectar and how does trade statistics cope with it?
  8. Trade rules?
  9. Changing technological challenges
  10. Policy implications
  11. Conclusions

Bibliography

Abe, S. (2016), “Global Value Chains in East Asia”, Doshisha University, Faculty of Policy Studies, mimeo.
Accetturo, A., A. Linarello and A. Petrella (2017), “Legal Enforcement and Global Value Chains: Micro-Evidence from Italian Manufacturing Firms”, Banca d’Italia, Occasional Paper No. 397.
Arthur, B. (2017), “Where is Technology Taking the Economy?”, McKinsey Quarterly (October), 1-11.
Baldwin, R. (2012), “WTO 2.0: Global Governance of Supply-Chain Trade”, CEPR Policy Insight No. 64.
Baldwin, C. and K. Clark (1997), “Managing in an Age of Modularity”, Harvard Business Review, 75(5), 84-93.
Baldwin, R. and A. Venables (2013), “Spiders and Snakes: Offshoring and Agglomeration in the Global Economy”, Journal of International Economics, 90(2), 245-254.
Bayard, K., D. Byrne and D. Smith (2015), Measuring Globalization: Better Trade Statistics for Better Policy, in: S. Houseman, M. Mandel (Eds), “Factoryless Manufacturing, Global Supply Chains, and Trade in Intangibles and Data”, Volume 2, W.E. Upjohn Institute for Employment Research: Kalamazoo, MI, pp. 81-120.
Belderbos, R., L. Sleuwaegen, D. Somers and K. de Backer (2016), “Where to Locate Innovative Activities in Global Value Chains”, OECD Science, Technology and Industry Policy Papers No. 30.
Branstetter, L. and N. Lardy (2006), “China’s Embrace of Globalization”, NBER Working Paper No. 12373.
Cooke, J. (2010), “From Bean to Cup: How Starbucks Transformed its Supply Chain”, Supply Chain Quarterly, Quarter 4.
Czarnitzki, D. and S. Thorwarth (2009), “The Design Paradox: The Contribution of In-house and External Design Activities on Product Market Performance”’, ZEW, Discussion Paper No. 09-068.
Dao, M., M. Das, Z. Koczan and W. Lian (2017), “Why is Labour Receiving a Smaller Share of Global Income?”, IMF Working Paper WR/17/169.
de Soyres, F., E. Frohm, V. Gunnella and E. Pavlova (2018), “Global Value Chains and Export Elasticities: All Linkages Matter”, VOX, 8 October 2018.
Dedrick, J., K. Kraemer and G. Linden (2010), “Who Benefits from Innovation in Global Value Chains? A Study of iPod and Notebook PC”, Industrial and Corporate Change, 19(1), 81-116.
Engman, M., O. Onodera and E. Pinali (2007), “Export Processing Zones: Past and Future Role in Trade and Development”, OECD Trade Policy Paper No. 53.
Farole, T. (2016), “Do Global Value Chains Create Jobs?”, IZA World of Labour, 291.
Freund, C. (2017), “17-25 Streamlining Rules of Origin in NAFTA”, Peterson Institute for International Economics Policy Brief (June).
Gereffi, G. (2016), “Global Value Chains and Upgrading: Export Promotion is FTZs”, World Free Trade Zones Organization Bulletin, No. 5,  3-11.
Gereffi, G., J. Humphrey and T. Sturgeon (2005), “The Governance of Global Value Chains”, Review of International Political Economy, 12(1), 78-104.
Grossman, G. and E. Rossi-Hansberg (2008), “Trading Tasks: A Simple Theory of Offshoring”, American Economic Review, 98(5), 1978-1997.
Heuser, C. and A. Mattoo (2017), “Services Trade and Global Value Chains”, World Bank Policy Research Working Paper No. 8126.
Hoekman, B. and C. Sabel (2017), “Trade Agreements, Regulatory Sovereignty and Democratic Legitimacy”, Robert Schuman Centre for Advanced Studies, RSCAS Working Paper 2017/36.
Humphrey, J. and H. Schmitz (2002), “How does Insertion in Global Value Chains Affect Upgrading in Industrial Clusters?’, Regional Studies, 36(9), 1017-1027.
ING (2017), “3D Printing: a Threat to Global Trade”, ING Bank: Amsterdam.
Isaksson, O., M. Simeth and R. Seifert (2016), “Knowledge Spillovers in the Supply Chain: Evidence from the High Tech Sectors”, Research Policy, 45(3), 699-706.
Jovanović, M.N. (2015), The Economics of International Integration, Edward Elgar: Cheltenham.
Jovanović, M.N. (2016), “Emerging Mega-Integration Blocs: Limits and Prospects”, Economia Internazionale/International Economics, 69(4), 271-316.
Kimura, F. (2013), How Have Production Networks Changed Development Strategies in East Asia?, in: D. Elms, P. Low (Eds), “Global Value Chains in a Changing World”, WTO: Geneva,  pp. 361-383.
Laplume, A., B. Petersen and J. Pearce (2016), “Global Value Chains from a 3D Printing Perspective”, Journal of International Business Studies, 47(5), 595-609.
Mann, K. and L. Püttmann (2017), “Benign Effects of Automation: New Evidence from Patent Texts”, VOX, 7 December.
McKinsey Global Institute (2019), Globalization in Transition: The Future of Trade and Value Chains, <https://www.mckinsey.com/featured-insights/innovation-and-growth/globalization-in-transition-the-future-of-trade-and-value-chains?reload>.
Miroudot, S. (2016), “Services in Global Value Chains: From Inputs to Value-Creating Activities”, OECD: Paris, mimeo.
Moran, T. and L. Oldenski (2016) “How Offshoring and Global Supply Chains Enhance the US Economy”, Peterson Institute for International Economics, Policy Brief No. 16-5.
OECD (2011), “Global Value Chains: Preliminary Evidence and Policy Issues”, DST/IND(2011)3.
OECD (2013), “Interconnected Economies: Benefiting from Global Value Chains – Synthesis Report”, OECD: Paris.
OECD (2017), “The Future of Global Value Chains”, OECD Science, Technology and Industry Policy Papers No. 41, <https://www.oecd-ilibrary.org/science-and-technology/the-future-of-global-value-chains_d8da8760-en>.
OECD (2018), “Domestic Value Added in Gross Exports”,
<https://data.oecd.org/trade/domestic-value-added-in-gross-exports.htm>.
Park, A., G. Nayyar and P. Low (2013), Supply Chain Perspectives and Issues, WTO: Geneva.
Reyes, J. (2017), “FDI Spillovers and High-Growth Firms in Developing Countries”, World Bank Policy Research Working Paper No. 8243.
Rodrik, D. (2018), “New Technologies, Global Value Chains and Developing Economies”, CEPR Discussion Paper  No. 13220.
Rong, Z., R. de Souza and M. Goh (2009), ‘Risk Management of Complex Supply Chains Part 1’, The Logistics Institute Asia Pacific, White Paper Series SCI09.
Smith, A. (2005 [1776]), An Inquiry into the Nature and Causes of the Wealth of Nations, A Penn State Electronic Classics Series Publication: Hazleton, PA.
Sturgeon, T. (2015), “Trade in Value Added Indicators: What they are, What they aren’t, and Where they’re Headed”, VOX, 20 May.
Taglioni, D. and D. Winkler (2016), Making Global Value Chains Work for Development, The World Bank: Washington, DC.
Timmer, M., A. Erumban, B. Los, R. Stehrer and G. de Vries (2014), “Slicing up Global Value Chains”, Journal of Economic Perspectives, 28(2), 99-118.
UNCTAD (2013), Global Value Chains and Development, UNCTAD: Geneva.
Wang, Z., S. Wei, X. Yu and K. Zhu (2016), “Characterizing Global Value Chains”, Stanford Center for International Development Working Paper No. 578.
Weber, A. (1909), Über den Standort der Industrien, J.C.B. Mohr: Tübingen [Translated from German by C. Friedrich, Theory of the Location of Industries (1962), University of Chicago Press: Chicago].
World Economic Forum (2018), The Future of Jobs Report, World Economic Forum: Geneva.
Xing, Y. (2017), “Global Value Chains and the US Missing Exports”, VOX, 27 September.
Xing, Y. and N. Detert (2010), “How the IPhone Widens the United States Trade Deficit with the People’s Republic of China”, ADBI Working Paper No. 257.