Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
Africa's linkages in manufacturing global value chains are reasonably high compared with other developing regions. Still, linkage rates have declined steeply in recent years in non-resource rich countries in the region although they have incre...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/686641602784367573/Africa-in-Manufacturing-Global-Value-Chains-Cross-Country-Patterns-in-the-Dynamics-of-Linkages http://hdl.handle.net/10986/34647 |
| Summary: | Africa's linkages in manufacturing
global value chains are reasonably high compared with other
developing regions. Still, linkage rates have declined
steeply in recent years in non-resource rich countries in
the region although they have increased sharply in countries
that are rich in natural resources. Moreover, the level and
dynamics of linkages to manufacturing global value chains
vary significantly between countries within each group of
natural resource endowments. The current levels, activity
structure, and geographic configuration of linkage rates
evolved over the past 20 years. In addition, these linkages
cut across broad activity categories, including
manufacturing textiles and apparel, metal products,
transport equipment, and electrical goods. This paper
analyzes the sources of the variation in linkage rates in
the framework of an estimated gravity and linear probability
model. It is shown that the domestic actors in these
linkages are typically relatively large establishments (100
or more employees) and have been in operation for five years
or longer. These manufacturers are also more likely to have
foreign equity holders or foreign technology licenses. These
findings should be seen in the light of policies that
promote industrialization by facilitating integration into
manufacturing global value chains at links that maximize job
and productivity gains. |
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