What happens in global value chains when the markey shifts from the north to the south?

This paper charts the evolution of financial and economic crisis in the global economy and argues that the likely outcome will be sustained growth in the two very large Asian Driver economies of China and India and stagnation in the historically dominant northern economies. Given the nature of demand in low income southern economies, it is likely to be reflected in sustained demand for commodities, with other southern economy producers in global value chains being forced into lower levels of value added. Standards are likely to be of considerably reduced significance in value chains feeding into China and India. These issues are considered in the light of evidence drawn from the experience of Thai exporters of cassava, and Gabonese exporters of timber

China and the Dutch economy

China’s spectacular economic performance over the past few decades has had a positive net impact on the Dutch economy. Imports of cheap Chinese products have lowered Dutch inflation. Increasing Chinese exports to Europe have strengthened the role of the Netherlands as a key European distribution centre. Strongly increasing Chinese exports did not have a noticeable impact on the pace of restructuring in the Netherlands. Nor did this development lead to higher unemployment or did it cause a marked widening of Dutch income differentials. Concerning competition on world markets, Chinese export products are more complements than substitutes for Dutch export products. The Chinese economy is expected to continue its rapid expansion. Over the next five years, Chinese exports are likely to double. Increasing trade with China will continue and is expected to enhance Dutch welfare in the upcoming years and will continue to be associated with modest increases in competition and continued restructuring on some markets.

The 2014 Australia-China trade report

Examines the benefits of the Australia-China trading relationship at a household level and looks beyond the resources boom and exploring the growth other Australian industries are seeing with China. It also provides practical advice on how to do business in China from Australian businesses already successfully doing it. Executive summary This report provides close analysis of the impact of bilateral trade between Australia and China on Australia’s business and economic integration with global value chains. It also extends the findings of previous reports by evaluating the latest flow-on effects of Australia-China trade for the Australian economy right down to the household level. Commissioned by the Australia China Business Council, this report expands on prior versions of the “Benefits to Australian Households of Trade with China Report” which, since 2009, have tracked the benefits to ordinary Australian households from trade with China

FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia

This paper examines the links between ownership, innovation and exporting in electronics firms in three late industrializing East Asian countries (China, Thailand and the Philippines) drawing on recent developments in applied international trade and innovation and learning. Technology-based approaches to trade offer a plausible explanation for firm-level exporting behavior. The econometric results (using probit) confirm the importance of foreign ownership and innovation in increasing the probability of exporting in electronics. Higher levels of skills, managers' education and capital also matter in China as well as accumulated experience in Thailand. Furthermore, a technology index composed of technical functions performed by firms emerges as a more robust indicator of innovation than the R&D to sales ratio. Accordingly, technological effort in electronics in these countries mostly focuses on assimilating and using imported technologies rather than formal R&D by specialized engineers.foreign direct investment, innovation, technological capabilities, R&D, firm-level exports, electronics, East Asia, China, Thailand and the Philippines

Can Sub-Saharan Africa leap into global network trade ?

This paper examines opportunities for Sub-Saharan African countries to effectively participate in globalization, particularly given the increasing interest of China and India in Sub-Saharan Africa. How can Sub-Saharan Africa fully engage and gain benefits from global network trade? Over the past 15 years Asia has become Africa's fastest growing export market. Asian countries are much more open to trade than Europe or America. There seems to be no evidence to suggest that this trend will not continue in the near future. The authors acknowledge the numerous caveats in Asia's growing interest in the African continent, not least the"resource curse"of exports that are heavily concentrated on oil, minerals, and raw materials, as well as the fierce competition from Asia's cheap manufactured exports. However, they believe that there is strong evidence to suggest a clear potential for South-South cooperation in trade and investment. Drawing on evidence from their extensive research into international value chains, the authors identify five critical factors for effective participation in global network trade: price, speed-to-market, labor productivity, flexibility, and product quality. Underlying competitive performance of these critical factors are a country's policies and institutions. Effective policies, efficient institutions, and the necessary infrastructure will ensure the best outcome for trading countries. To improve the depth and sustainability of these five critical factors, it is important that developing countries create a supportive policy and institutional framework from the outset.Markets and Market Access,Economic Theory&Research,Access to Markets,Transport Economics Policy&Planning,Transport and Trade Logistics

自国民による技術主導産業キャッチアップ戦略の再文脈化: 7か国間の危機意識の違いについて

早大学位記番号:新8583早稲田大

The Fight for the Middle: Upgrading, Competition, and Industrial Development in China

When China acceded to WTO in 2001, there were fears that Chinese firms would lose market share in key sectors to foreign-invested enterprises (FIEs). Although aggregate data often indicate a shift in favour of FIEs, indigenous firms in many cases have slowly increased market share and deepened their technical capabilities. Through an analysis of aggregate data and three sectors, we show how the dynamics of competition between Chinese and FIEs in China's domestic market enhance the upgrading prospects for Chinese firms. China represents a new model of development in several important respects: industrial upgrading efforts are often domestically-driven, within this domestic market there is intense competition between both domestic and foreign firms, and this competition is driving and stimulating the upgrading efforts of domestic firms.China, industrialization, FDI, upgrading, value-chains, emerging markets, automotive

Politics and Economic Reform in Malaysia

Malaysia’s admirable economic growth is often attributed to liberal, open economic policies. Aggregate measures of openness, however, often veil the way coalitional politics drove illiberal government intervention in the economy to correct ethnically based economic inequality, create national heavy industries, and favor politically well-connected entrepreneurs. A more nuanced analysis reveals a complex mix of liberal and illiberal economic policies designed to balance competing coalitional interests. These policies created a “dual economy” that successfully replaced growing political and social instability with rapid economic growth sufficient to support redistributive politics. Yet this same dual economy also slowed further reform and retarded technological development, leaving Malaysia mired in mediocrity: neither price competitive with China nor technologically competitive with Singapore, the East Asian NICs, or the OECD countries.http://deepblue.lib.umich.edu/bitstream/2027.42/40041/3/wp655.pd

The shoe industry of Marikina City, Philippines: a developing country cluster in crisis

I initiate the discussion with a few general remarks on industrial clusters and commodity chains. I describe the main features of the shoe industry in the Philippines. The core of the industry is located in Marikina City in the northeast of the Manila Metropolitan Area. I provide a detailed account of the internal structure and changing fortunes of this cluster. The deeply-rooted failures of the cluster since the early 1990s are pinpointed. I show that these can be directly related to the liberalization of the Filipino economy, and the concomitant increase in Chinese-made shoes on domestic markets. Various private and public responses to the crisis are described and evaluated. I argue that as helpful as many of these responses may be, their overall impact is likely to remain limited. I enumerate a series of possible policy options, but I also emphasize the high risks of failure. I try, in particular, to provide a developmental scenario based on cluster upgrading and intensified export activity.shoe industry, industrial districts, regional development, clustering, agglomeration

The Flying Geese Paradigm: A critical study of its application to East Asian regional development

It is often claimed that what is popularly known as the "flying geese paradigm" of dynamic comparative advantage has accurately depicted the East Asian catching-up process. This paper presents a critical study of the paradigm, as well as its application to the current situation in East Asia economic hierarchy. The paper first presents the various versions of the paradigm, and discusses similarities and differences among them. It then evaluates the application of the paradigm to the East Asian regional development context by identifying major theoretical, conceptual and empirical problems that come with it. It is the author's hope that the arguments presented in this paper will contribute to the further enrichment of future discussions on the East Asian development experience.Flying geese paradigm; East Asia; Catching-up process; product cycle;