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.”

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

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

A European young student speaks about the Youth Policies of the European Commission

The Sichuan Province of China presents its cultural treasure to the EU

UN chief welcomes possibility of resumed talks between US and North Korea

Why Italy will not follow the Greek road; Eurozone to change or unravel

Ebola Outbreak in Democratic Republic Congo is ‘largely contained’: WHO

Why do thousands of migrants need to be drowned for Brussels to wake up?

EU’s Finance Ministers draft plan to raise tax bills of online giants like Google and Amazon

Central Africa: Security Council concerned by ‘grave security situation’, calls for better agency cooperation

How the United States is falling in love with secondhand clothes

Taking fast road to ‘e-mobility’ central to a sustainable future: COP24

‘Catastrophic’ healthcare costs put mothers and newborns at risk

Egyptian death sentences a ‘gross miscarriage of justice’: UN human rights chief

Austrian Presidency priorities discussed in committees

Human rights are everyone’s business, amid relentless crises around world: UN’s Bachelet

Three ways the world must tackle mental health

Music is a vital urban resource. How do we plan for it?

EU: Tax evasion and fraud flourish under political protection

Syrians still living on ‘razor edge’ as UN launches $8.8 billion dollar appeal

New study shows close link between GVCs participation and economic development

International Day of the Midwife: 5 things you should know

Time is running out to protect Africa’s forests

Finland, Switzerland and New Zealand lead the way at teaching skills for the future

EU to spend €6 billion on youth employment and training futile schemes

Security Council gravely concerned by Ebola outbreak in DR Congo, demands immediate end to violence hampering response

There is huge talent in the world’s refugee camps. We must realize this overlooked potential

Property regimes for international couples in Europe: new rules apply in 18 Member States as of today

A conceptual approach to Violence Against Healthcare in Turkey from SDG’s

Measuring consumer confidence isn’t useful anymore. Here’s what we should do instead

4 radical shifts required to achieve universal health coverage worldwide

How to future-proof India’s economy

There’s a global learning crisis and it’s leaving millions without basic skills

This is how attitudes to vaccines compare around the world

Hopes for Palestinian State hit by ‘facts on the ground’ : senior UN official

When it comes to envirotech adoption, NGOs can lead us out of the woods

SMEs are driving job growth, but need higher investment in skills, innovation and tech to boost wages and productivity

UN rights chief ‘strongly’ condemns ‘shocking’ mass executions in Saudi Arabia

These forms of exercise are best for your mental health

5G will redefine entire business models. Here’s how

Haiti stands ‘at the crossroads’ between peacekeeping, development – Bachelet urges strengthened ‘human rights protection’

DR Congo: Ebola response resumes despite ‘risky environment’

Europe turns out more jobs this summer

Tuesday’s Daily Brief: Bicycles for the environment, new leader for the UN General Assembly, UN values, Ebola, Syria and Libya

Thursday’s Daily Brief: dire living conditions in Idlib, migrants at US southern border, end in sight for trachoma, Human Rights Council

If airlines were a country they’d be one of the world’s top 10 greenhouse gas emitters

MWC19 Wrap Up, in association with The European Sting, GSMA’s Brussels Media Partner for the 6th Consecutive Year

Here’s how to make ‘value-based healthcare’ a reality

‘Ghost fishing’ is threatening our oceans. Here’s how we can tackle it

Schools must look to the future when connecting students to the internet

EU economy: Between recession and indiscernible growth

EU tourism industry expects a new record year in 2014

North-east Nigeria displacement crisis continues amid ‘increased sophistication’ of attackers, warns UN

Mental health: a medical school’s demand

How Eurozone consumers spend their income when they have one…

Portugal: Budget MEPs back €4.66 m in job-search aid for 730 redundant workers

Erasmus+: an expected budget of €3 billion to be invested in young Europeans and to help create European Universities in 2019

Indigenous peoples ‘lag behind on all social and economic indicators’: UN deputy human rights chief

Eliminating waste at scale – eight opportunities for blockchain

The US-Mexico trade deal a threat for others, Trump to single out China, Europe

We can decide to live within the limits of our planet

7 ways for businesses to capture the youth dividend

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