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 Milestones

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

The ECB tells Berlin that a Germanic Eurozone is unacceptable and doesn’t work

Fear casts again a cold, ugly shadow over Europe; Turkey sides with Russia

These technologies are playing a major role at the Cricket World Cup

Stolen colonial-era objects will be ‘unconditionally’ returned, says the Netherlands

MEPs call on Russia to stop illegitimate prosecution of Lithuanian judges

Climate emergency: City mayors are ‘world’s first responders’, says UN chief

New poll shows what people think coronavirus will do to their economies

The four top Americans who flew to Europe perplexed things about Trump’s intentions

2019 ‘a critical year’ for Somali politics and development says Security Council

Is Europe misjudging its abilities to endure more austerity and unemployment?

Building a European Health Union: Stronger crisis preparedness and response for Europe

Member States’ compliance with EU law in 2018: efforts are paying off, but improvements still needed

Hungary: people born in the 2020s won’t have legal rights any more to buy tobacco

From books to bikes: 4 unexpected gender gaps

Medicines from the sky: how drones can save lives

Unity, regional cooperation and international support needed for Horn of Africa to develop sustainably

2019 European Elections gets backing from professional footballers

Natural hazards don’t always spell disaster: UN risk reduction chief

The two big uncertainties shaping our future

Can the EU afford a trade war with China?

The next 48 hours may change the European Union

Metrics of the Sustainable Developments Goals: Can we trust our data?

Coding in Namibia: UN supports young women’s computing career dreams

EU-U.S. Privacy Shield: Second review shows improvements but a permanent Ombudsperson should be nominated by 28 February 2019

3 ways digitalization will help end crime

Changing healthcare systems with simple technological solutions

EntEx Organises 5 Summer Schools for Young Entrepreneurs across Europe in June/July 2014

Talent, not technology, is the key to success in a digital future

SMEs and micro firms sinking together with south Eurozone

UN Envoy urges Burundi leaders to ‘seize opportunities for national unity and peace’

Greece lost a month that cannot be found neither in “mini Summits” nor in Berlin

Belgium: keep up reforms to increase employment and productivity growth

Ebola not an international ‘health emergency’ but risks spreading across DR Congo border, warns UN health agency

“Access denied”: the Greek health system under pressure

South Korea: A cherished partner for the EU

Commission considers anti-dumping duty on Chinese solar glass imports

3 ways sustainable supply chains can build better business in a post-COVID world

Commission issues guidance on the participation of third country bidders in the EU procurement market

How regenerative agroforestry could solve the climate crisis

Davos on Climate Change: citizens demanding more actions while CEOs tried to balance profit with sustainability

UN ‘determined to lead by example’ on disability rights: Guterres

3 reasons why consumer demand matters for the post-COVID-19 recovery

Service Engineer Intern – 1991

This is why many young people have no access to proper education

This man is installing 100 trash barriers in Bali’s rivers to stop plastic pollution

FROM THE FIELD: Weeding out Mexico’s unwanted beach invader

Infrastructural and system barriers to Universal Health Coverage: get in my patient’s shoes

This Kenyan company makes fuel from human poo

We must move from egocentric to ecocentric leadership to safeguard our planet

Ukraine turns again to the EU for more money

The Greta effect? Why businesses are more committed to climate action in 2020

World Maritime Day: Commissioner Vălean calls for support and safe return of seafarers

FROM THE FIELD: South Sudan’s green shoots, highlight environmental recovery from war

Why the way of loving closes doors of health?

3 things to know about our Sustainable Development Impact Summit

After this year’s Climate Action Summit, what happens next?

EU Court of Justice invalidates Safe Harbour and the game for thousands US businesses suddenly changes

How tech can lead reskilling in the age of automation

The European Union continues to lead the global fight against climate change

Britain declares trade war on mainland Europe

More Stings?

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