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...

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Main Authors: Abreha, Kaleb, Lartey, Emmanuel, Mengistae, Taye, Owusu, Solomon, Zeufack, Albert
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
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
id okr-10986-34647
recordtype oai_dc
spelling okr-10986-346472022-09-20T00:10:50Z Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages Abreha, Kaleb Lartey, Emmanuel Mengistae, Taye Owusu, Solomon Zeufack, Albert GLOBAL VALUE CHAIN MANUFACTURING NATURAL RESOURCES VALUE-ADDED LINKAGES GRAVITY MODEL TECHNOLOGY LICENSES 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. 2020-10-22T16:06:39Z 2020-10-22T16:06:39Z 2020-10 Working Paper 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 English Policy Research Working Paper;No. 9439 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 Sub-Saharan Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic GLOBAL VALUE CHAIN
MANUFACTURING
NATURAL RESOURCES
VALUE-ADDED
LINKAGES
GRAVITY MODEL
TECHNOLOGY LICENSES
spellingShingle GLOBAL VALUE CHAIN
MANUFACTURING
NATURAL RESOURCES
VALUE-ADDED
LINKAGES
GRAVITY MODEL
TECHNOLOGY LICENSES
Abreha, Kaleb
Lartey, Emmanuel
Mengistae, Taye
Owusu, Solomon
Zeufack, Albert
Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
geographic_facet Africa
Sub-Saharan Africa
relation Policy Research Working Paper;No. 9439
description 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.
format Working Paper
author Abreha, Kaleb
Lartey, Emmanuel
Mengistae, Taye
Owusu, Solomon
Zeufack, Albert
author_facet Abreha, Kaleb
Lartey, Emmanuel
Mengistae, Taye
Owusu, Solomon
Zeufack, Albert
author_sort Abreha, Kaleb
title Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
title_short Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
title_full Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
title_fullStr Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
title_full_unstemmed Africa in Manufacturing Global Value Chains : Cross-Country Patterns in the Dynamics of Linkages
title_sort africa in manufacturing global value chains : cross-country patterns in the dynamics of linkages
publisher World Bank, Washington, DC
publishDate 2020
url 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
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