The Capabilities Driving Participation in Global Value Chains
Global value chains have altered the nature of global trade and offer significant opportunities for developing countries to expand exports, access technology, and raise productivity. Policy makers rightly seek to understand what it takes to partici...
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| Format: | Working Paper |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/08/26725130/capabilities-driving-participation-global-value-chains http://hdl.handle.net/10986/25049 |
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okr-10986-250492021-04-23T14:04:28Z The Capabilities Driving Participation in Global Value Chains Pathikonda, Vilas Farole, Thomas global value chains international trade comparative advantage competitiveness development Global value chains have altered the nature of global trade and offer significant opportunities for developing countries to expand exports, access technology, and raise productivity. Policy makers rightly seek to understand what it takes to participate in global value chains. In practice, this means understanding what it takes to attract lead firms and upgrade to higher value-added activities. Recent literature has pointed to a range of underlying characteristics that may drive participation in global value chains. Using a modified factor-content methodology, this paper shows that proximity to markets, efficient logistics, and strength of institutions are among the most important capabilities. However, the paper also shows that each sector has a unique mix of capability requirements. Fixed structural characteristics limit the range of sectoral possibilities for a given country, but, by reducing policy-related gaps, a country may be able to increase its competitiveness for participating in global value chains. The paper applies the methodology to Southern African Customs Union countries, and demonstrates that, by filling gaps in underlying capabilities, these countries could increase participation in certain global value chain sectors. 2016-09-12T22:26:17Z 2016-09-12T22:26:17Z 2016-08 Working Paper http://documents.worldbank.org/curated/en/2016/08/26725130/capabilities-driving-participation-global-value-chains http://hdl.handle.net/10986/25049 English en_US Policy Research Working Paper;No. 7804 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Southern Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
global value chains international trade comparative advantage competitiveness development |
| spellingShingle |
global value chains international trade comparative advantage competitiveness development Pathikonda, Vilas Farole, Thomas The Capabilities Driving Participation in Global Value Chains |
| geographic_facet |
Africa Southern Africa |
| relation |
Policy Research Working Paper;No. 7804 |
| description |
Global value chains have altered the
nature of global trade and offer significant opportunities
for developing countries to expand exports, access
technology, and raise productivity. Policy makers rightly
seek to understand what it takes to participate in global
value chains. In practice, this means understanding what it
takes to attract lead firms and upgrade to higher
value-added activities. Recent literature has pointed to a
range of underlying characteristics that may drive
participation in global value chains. Using a modified
factor-content methodology, this paper shows that proximity
to markets, efficient logistics, and strength of
institutions are among the most important capabilities.
However, the paper also shows that each sector has a unique
mix of capability requirements. Fixed structural
characteristics limit the range of sectoral possibilities
for a given country, but, by reducing policy-related gaps, a
country may be able to increase its competitiveness for
participating in global value chains. The paper applies the
methodology to Southern African Customs Union countries, and
demonstrates that, by filling gaps in underlying
capabilities, these countries could increase participation
in certain global value chain sectors. |
| format |
Working Paper |
| author |
Pathikonda, Vilas Farole, Thomas |
| author_facet |
Pathikonda, Vilas Farole, Thomas |
| author_sort |
Pathikonda, Vilas |
| title |
The Capabilities Driving Participation in Global Value Chains |
| title_short |
The Capabilities Driving Participation in Global Value Chains |
| title_full |
The Capabilities Driving Participation in Global Value Chains |
| title_fullStr |
The Capabilities Driving Participation in Global Value Chains |
| title_full_unstemmed |
The Capabilities Driving Participation in Global Value Chains |
| title_sort |
capabilities driving participation in global value chains |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/08/26725130/capabilities-driving-participation-global-value-chains http://hdl.handle.net/10986/25049 |
| _version_ |
1764458235011530752 |