New study shows close link between GVCs participation and economic development

UNIDO 18 June 2

(UNIDO, 2018)

This article is brought to you in association with the United Nations.

Participation in Global Value Chains (GVCs) can play an important role in a country’s development, however countries must reach a certain threshold in industrial competitiveness to be able to integrate GVCs.

This is a key finding of a new report titled “The Global Value Chains and Industrial Development: Lessons from China, South-East and South Asia”, which was launched today at the 2018 Forum on Globalization and Industrialization. It was developed by the United Nations Industrial Development Organization (UNIDO) and the University of International Business and Economics (UIBE), China.

The global economy is increasingly characterized by the fragmentation of industrial production process along GVCs. East Asia has experienced some of the most important GVC developments. Countries in the region are primary beneficiaries of GVCs participation and its contribution to industrial development and economic growth: offering valuable insights into factors of successful GVC participation and upgrading.

“Empirical work at macro, micro, and individual firm level reinforces the importance of GVCs in 21st century industrialization,” said Richard Pomfret, Professor of Economics at the University of Adelaide, Australia, during his presentation of the report at the Forum. “By requiring expertise in a task rather than creation of an integrated industry, GVCs ease the pathway to industrialization.”

“Participation in GVCs requires many characteristics already known to be preconditions for economic development. More importantly, upgrading within GVCs requires skills, good infrastructure and other characteristics that need supportive public policies.”

The report also concludes that, in low-income country, GVC participation has contributed to inclusive growth, reducing poverty, and increasing gender participation and equity in the workplace.

“Developing and emerging economies try their best to participate in GVCs and contribute to global economic growth. This joint research report provides the pathways and policy recommendations on how to integrate into GVCs and climb the ladder effectively,” said UIBE Professor and Vice-President Zhongxiu Zhao at the event.

The insights of the report provide the basis for a two-pronged policy approach: policies must first seek to increase industrial competitiveness to enable GVC participation and to ignite industrial development. Policies must also focus on continuous improvements in industrial competitiveness to enhance the terms of GVC participation and sustain industrial development for deep structural change.

The report further explores whether participation in GVCs has led to structural change, and the impact of GVCs on the environment through changes in emissions.

“If we want to achieve the Sustainable Development Goals by 2030, efforts to integrate GVCs must be socially and environmentally sustainable,” said UNIDO Director of Policy Research and Statistics, Cecilia Ugaz Estrada. “Given the ramifications for both global climate change and environmental resources, countries should avoid expanding production in polluting activities.”

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Visa liberalisation: Commission reports on fulfilment of visa-free requirements by Western Balkans and Eastern Partnership countries

Don’t dismiss start-ups founded by millennials. This is how they succeed

Parliament leads the way on first set of EU rules for Artificial Intelligence

EU growth in 2015 to be again sluggish; Can the Juncker Commission fight this out?

End ‘shame, isolation and segregation’ of fistula sufferers, urges UN reproductive health chief

Is this a turning point in the fight against slavery?

How to close the gender pay gap in three steps

On Google antitrust case: “Let’s face it, some companies want to hurt Google and it goes as simple as that”

The digital revolution will transform the steel industry

The Commission offers exit from the EU budget stalemate

These 11 companies are leading the way to a circular economy

EU and Airbus Member States take action to ensure full compliance in the WTO aircraft dispute

Antitrust: Commission fines car parts suppliers of € 18 million in cartel settlement

Soil pollution ‘jeopardizing’ life on Earth, UN agency warns on World Day

MWC 2016 LIVE: Orange targets VoLTE and Voice over Wi-Fi; strikes Google partnership

Investing in rural women and girls, ‘essential’ for everyone’s future: UN chief

Humanitarian visas would reduce refugees’ death toll

EU budget for 2021-2027: Commission welcomes provisional agreement on Horizon Europe, the future EU research and innovation programme

IMF asks Europe to decide on bank resolutions and the Greek Gordian knot

Healthcare guidance apps to professional’s continued education?

ILO warns of widespread insecurity in the global labour market

World-famous cultural institutions closed due to coronavirus are welcoming virtual visitors

Trade with the United States: Council authorises negotiations on elimination of tariffs for industrial goods and on conformity assessment

Green Deal: Commission adopts new Chemicals Strategy towards a toxic-free environment

The London City-EU connection holds despite of Brexit and the ban of LSE-Deutsche Börse merger

Coronavirus: a cultural escape goat or the next Big Five

EU Emissions Trading System does not hurt firms’ profitability

These EU countries have the most government debt

Conditions deteriorating alarmingly in Yemen, warns senior UN official

DR Congo: Restore internet services as ‘a matter of urgency’, urges UN expert

UN celebrates books as ‘bridges across cultures’

Tackle ‘tsunami of hatred’ across the world urges Guterres, to counter anti-Semitism, racism and intolerance

EU leaders slammed on anti-tax evasion inaction and expensive energy

EU to Telcos: Stop Mergers and Acquisitions but please help me urgently with 5G development

China-EU Summit on 16-17 July 2018: “Work together to address common challenges”, by China’s Ambassador to the EU

How can we measure real progress on the Sustainable Development Goals?

UN health agency highlights lifestyle choices that can prevent onset of dementia, as millions more succumb each year

Brexit: European Commission intensifies preparedness work and outlines contingency action plan in the event of a no deal scenario with the UK

July was the hottest month ever – what does that actually mean?

Landmark agreement will protect 100 European Geographical Indications in China

Could switching between summer and winter time end in 2021?

Greferendum: the biggest political gaffe in western modern history to tear Europe apart? #Grexit #Graccident

“Financial crisis will not happen in China!”, the Chinese Premier underlines from Switzerland; the Sting reports live from World Economic Forum 2015 in Davos

A brief history of cryptography and why it matters

State aid: Commission opens investigation into proposed public support for Peugeot plant in Spain

Escalation in Syria fighting cause for ‘great concern’ says UN chief, dozens more civilians dead or injured

Afghanistan: Civilian casualties exceed 10,000 for sixth straight year

Last year, this coral reef was teeming with life. Now it’s dying – and it’s up to us to save it

Free flow of non-personal data: Parliament approves EU’s fifth freedom

UN chief welcomes ‘positive steps’ towards peace between Eritrea and Ethiopia

After swallowing effortlessly the right to be forgotten time for Google Ads now to behave

Respect people’s peaceful assembly and fair trail rights, UN human rights wing urges Nicaragua

‘Refrain from violence’ UN chief urges, as presidential election result is announced in DR Congo

We spend half our time at work in meetings – and that’s not necessarily a bad thing

“911, What’s your emergency?”

Why the ECB had to clarify it caters for the entire Eurozone not just Germany?

Amid ‘volatile’ environment, UN mission chief urges Iraqi leaders to ‘listen to the voice of the people’

Why activist athletes are needed today more than ever

EU Emergency Trust Fund for Africa: new actions of almost €150 million to tackle human smuggling, protect vulnerable people and stabilise communities in North Africa

Why Africa must be ready to take the quantum leap

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s