The evolution analysis of agricultural global value chains

With the Uruguay Round bringing agricultural trade into multilateral regulation,the major countries have actively participated in agricultural global value chains(AGVC)and occupied an important position according to their comparative advantages.Utilizing bilateral agricultural trade data of 66 countries based on the OECD Inter-Country-Input-Output Tables(OECD ICIO)from 2010 to 2018,this study applies social network analysis indicators to measure each country’s eigenvector centrality within AGVC and to examine the current global agricultural trade patterns,with particular attention to the changes in the status of world powers within AGVC.The main findings are as follows:first,with the multilateral and regional trade liberalization,growing numbers of developing nations,including China and India,are engaging in international agricultural trade,which contributes to its diversification;second,as AGVC develops,the structure of global agricultural trade networks has become more decentralized and balanced.This is evidenced by the emergence of additional central nodes,and large nations like the United States,which formerly held the most central position as indicated by a drop in its centrality,are becoming less dominant.

Establishment of Regional Green Innovation Value Chains:A Case Study on Tackling the Impeded Diffusion of Green Products

The green innovation value chain is a key step in transforming green,innovative scientific,and technological achievements into productive forces.The establishment of green innovation value chains based on value distribution rather than technical conditions can effectively overcome the common bottleneck faced by different nations during their green innovation endeavors,namely,the substitution of conventional products with green alternatives.This study investigates the impeded diffusion of green products and their underlying causes,analyzes the internal structure and mechanism of the green innovation value chain,and explores the establishment of regional green innovation value chains and the models available for value chain upgrading.

Does strict environmental regulation enhance the global value chains position of China's industrial sector?

Given the vital importance of global value chains(GVCs)position for a country's international competitiveness,this paper tries to investigate the impacts of environmental regulation on the GVCs position of China's industrial sector.Using the latest value-added decomposition method,we first measure the GVCs position of China's industrial sector from 2003 to 2014.Subsequently,both two-stage least squares(2 SLS)method with panel data and mediating effect model are employed to empirically examine the effects of environmental regulation on China's position in GVCs.The results indicate that environmental regulation has significantly upgraded the GVCs position of China's industrial sector,and the effect is more evident for the sub-sectors with originally lower GVCs position.The mediation effect test shows that increasing R&D investment is an important channel through which environmental regulation affects the GVCs position of China's industrial sector,which verifies the existence of the Porter hypothesis.Further analysis finds that the enhancement of GVCs position of China's industrial sector caused by environmental regulation is mainly achieved through reducing the backward GVCs position.

China's Position in Global Value Chains Compared with the EU,U.S.and Japan

By creating a five-country I-O model of China, EU, US, Japan and other countries, this paper decomposes gross export into nine parts and investigates the GVC positions and competitiveness of China and the other three economies for different sectors using real domestic trade in value-added and GVC position indices. In addition, valueadded trade is taken into consideration to identify the labor division characteristics of the four economies in the GVC, which led to the following findings: China participates primarily in the single links of the GVC at the downstream yet shows a significant tendency to move upstream in technology-intensive sectors; Japan participates primarily in the single links of the GVC at the upstream and boasts an advantage in technology-intensive sectors; the US participates in the multiple links of the GVC at the upstream with superiority in hightechnology sectors; the EU participates in the production and export of intermediate goods and final goods at both ends.

Strategic Agricultural Commodity Value Chains in Africa for Increased Food: The Regional Approach for Food Security

The challenge Africa faces the most is how to feed the 2.4 billion people in 2050. This will require a transformational agriculture. Africa doesn’t need subsistence agriculture, but rather agriculture linked to the market where market demand and the consuming habits are taken in consideration. Agriculture evolves in an environment where small holders are linked to markets (national and regional), where economies of complementarity and economies of scale are taken advantage of by producers and private sector. In short, Africa will need a paradigm shift to industrialise and commercialise its agriculture sector in order to increase food production, and income and to create jobs in and outside the sector. Africa needs agribusiness and agro-industries to domesticate the benefits of the sector, to create wealth in the sector and retain that wealth in the continent. Agricultural commodities regional value chains for increased food should be the target for Africa. The continent remains the region with the highest prevalence of under-nourishment. Since agriculture remains the mainstay of most African economies except the mineral producers, the sector deserves a close attention from leaders. It accounts for 65% of employment and 40% of Africa’s export earnings and accounts for 17% of the GDP. This shows how important the sector is. Agriculture needs to be seen as a conduit for farmers to get connected to markets, a conduit for revenue, for jobs and for transformation. Africa needs to come back on the international scene as food sufficient continent and even food exporter. This can be achieved only with a stable, productive agricultural resource base. Thus, achieving and sustaining food security and economic prosperity in Africa will require significant efforts to modernize the continent’s agriculture sector through injection of agribusiness and agro-industries and through the application of science and technology in agriculture. In essence, agriculture needs to be viewed as knowledge based entrepreneurial activity. Smart investments in agriculture will have multiplier effects for the whole economy and hence induce prosperity to other sectors. In recent years, a renewed focus on agriculture has been evident in policy and development agendas across the African continent. This paper outlines the status of agriculture, agribusiness and agro-industries in Africa, their role in the agenda of agricultural transformation and economic transformation and the focus on regional value chain to increase food production, transformation and trade. The paper adopts a new thinking in agriculture, which reflects a regional value chain approach. The author covers such issues as: need for agricultural transformation, the role of value chain in agricultural sector, the need for regional value chain for increased income and increased food, the role of markets and the common denominator of all, the regional integration to push forward the African agriculture agenda. Evidence shows that it is agricultural growth, through its leverage effects on the rest of the economy that typically enables poor countries, poor regions and ultimately poor households to take the first steps toward economic transformation. Therefore agricultural productivity, at the small holder’s level, has the potential to lift millions of Africa’s vulnerable out of poverty and provide sustainable jobs. Other factors, namely “the rapid urbanization” and “increased population growth”, are quoted to be of critical importance. Africa population is projected to double, attaining the 2.3 billion people mark over the next 40 years representing half of the globe’s total population. This could trigger competition for resources and can have devastating effects on natural resources if not rightly channelled.

Creating Inclusive Global Value Chains under the BRI from the Perspective of Public Goods Supply and Demand

Supply and demand of public goods provide a brand-new theoretical framework for research on the creation of inclusive global value chains(GVCs)under the Belt and Road Initiative(BRI).The supply of international public goods is an important positive variable for creating global value chains under the BRI,in which China and other developing countries involved,as well as their small and medium-sized enterprises(SMEs),are microscopic entities.When the BRI’s supply of instrumental,institutional,and conceptual international public goods is in equilibrium with the demand of GVC entities for public goods,the BRI creates necessary conditions for the extension of GVCs.GVCs created under the BRI are of great value in promoting inclusiveness,fair income distribution,balanced regional development,and the restructuring of international economic governance.Under the current GVC system,some developed countries have been wary about the BRI and even developed misgivings and biases.Nevertheless,developed countries may play an active role in bridging gaps in the BRI’s development and complement their respective strengths with developing countries for win-win cooperation.

The Global Value Chains and the Evolution of Chinese Economic Model

According to the Word Bank,in the first 38 years of China,economic reform took 700 million people out poverty line in China at the same time benefiting the Global South economy due to the integration of the transnational enterprises global value chains with China.Chinese government understood the economic rational of global value chains,Flying Geese Model,and foreign direct investment theories and introduced policies to attract foreign capital,technology,production,and foreign buyers,placing China as the final stage of the production networks in Asia and also transforming China in the biggest buying market of many resources and energy suppliers from less developed countries in Asia,Africa,and South America.But a new model of Chinese economic development even more interconnected and interdependent with the world is now on move.Even quite before the world acknowledge the protectionist mindset of the US in Trump era,Chinese President Xi Jinping launched in 2013 a very ambitious initiative under the name of“One Road,One Belt,the 21st-Century Maritime Silk Road”to enhance a new stage of world globalization,which together with two complimentary initiatives:the“International Production Cooperation”and“Third-Country Market Cooperation”,and in complementarity with the“Made in China 2025”and“Internet Plus”plans will lead China to develop global value chains leaded by Chinese companies and integrating countries of Europe,Africa,Asia,and South America.

Global Value Chains in the Era of 4IR: New Paradigm of Business Models for SMEs

This paper presents a brief literature review of previous studies methodologies,models,and contexts in studying firms’upgrading in Global Value Chains(GVCs).The key context of this paper is set within Fourth Industrial Revolution(4IR).Through the literature review,this paper offers to identify the opportunities of theoretical novelty and ways to elaborate on understanding firm dynamics in Global Value Chains in the context of 4IR.The approach based on Business Model(BM)innovations and new forms of organizing for business(such as platforms)is used to synthesize from previous research findings and build on to newer explanations of firms’entry,learning,and upgrading within GVCs.

Learning by Doing Effect in North South Trade under the Global Value Chains： An Empirical Analysis of Various Industries in the U.S.

This paper studies the division of labor and economic development under global value chains in North South trade by mainly investigating the changes of production hours and cost per unit along with more and more output and increasing trade value in several industries in the U.S., because the U. S. is at the leading position in the division of labor by global value chains. The empirical evidence reveals that more international outsourcing, there will be more detailed division of labor, and the industry unit production time and production cost will show more declining trend year by year. This is consistent with that the global value chains and the outsourcing play more and more important roles in the international division of labor and economic growth in both developed and developing countries, and helps explain the integration of workforce across countries in the global value chains.

Analysis of Agricultural Commodities Value Chains and Greenhouse Gas Emission in Rice and Maize in West Africa: Impact on Food Security

This paper analyses the greenhouse gas (GHG) emission along the value chains of two strategic commodities in West Africa (rice and maize) in four pilot countries: Ghana, Senegal Benin and Cote D’Ivoire. The Value Chains Analysis and Greenhouse model used in this study, provides insight into the relationship between output maximization and GHG emissions to help define optimal intervention approaches that minimize emissions while maximizing the potential yield, hence boost food security. It highlights intervention measures for improvement of production and productivity along with the identification of mitigation measures to reduce GHG emissions. It also revealed that the largest GHG emission factor from maize farming in the selected countries is from the application of nitrogen fertilizers (NO2), and for rice farming, depending on the systems, e.g. rain fed, irrigated or multiple aeration, the emission is mostly due to anaerobic decomposition of methane (CH4) which increases with flooding practice.

How the adoption of industry 4.0 technologies is related to participation in global and domestic value chains: Evidence from Russia

This study explores the relationships among Industry 4.0 technologies, their application areas,and the involvement of Russian manufacturing firms in global and domestic value chains. Weapply logit and multinomial logit regressions using an original survey dataset of approximately1700 Russian manufacturing firms. We make a novel contribution to the literature by uncoveringan asymmetry in adopting Industry 4.0 technologies among Russian industrial firms in domesticvalue chains (DVCs) and global value chains (GVCs). This asymmetry has the potential to impedeGVC localization and DVC internationalization. Based on our results, software automation solu-tions are the only ones demonstrating statistical significance for firms participating simulta-neously in GVCs, DVCs, and both GVCs and DVCs. Companies in DVCs demonstrate a broaderutilization of Industry 4.0 technologies across various application areas. We also identify evidenceof reshoring in DVCs, indicating that Industry 4.0 adoption encourages firms to establish enduringrelationships with domestic suppliers. Highlighting that differences in technology adoption areinfluenced by external factors, including adherence to international standards and regulatoryprinciples, we propose policy implications for developing countries. Recommendations encom-pass reducing entry barriers to DVCs, improving procurement transparency, and promotingcompetition in the digital solutions market to empower firms for seamless GVC integration.

Tracking Transfer of Carbon Dioxide Emissions to Countries along the Silk Roads Through Global Value Chains

The Belt and Road Initiative(BRI)has aroused rich discussions about the possible increase in carbon dioxide emission under the arduous global carbon dioxide emission reduction task.Adopting the methods of input-output technique and complex network ana-lysis,we first construct a fairer method to trace carbon dioxide emission transfer based on global value chains,then trace the source of carbon dioxide emission transfer to the Silk Roads countries with a long-term multiple regional input-output database.We find that,first,after the proposal of the BRI,the total direct carbon dioxide emissions of the Silk Roads countries and China’s proportion of carbon dioxide emission transfer to the other Silk Roads countries have both declined.Second,the Silk Roads countries are generally the net receivers of carbon dioxide emission transfer,and the inflow is mainly distributed in Southeast Asian countries and core countries in other sub-regions.Then,the transfer of carbon dioxide emission accepted by the Silk Roads countries comes mostly from large developing countries,such as China,Russia,and India,and developed countries,such as the United States,Japan,and Germany.The products are mainly concentrated in energy and chemical industries,as well as heavy industries,such as mining and quarrying,and metal products.We suggest that,due to the high degree of spatial and industrial concentrations of carbon dioxide emission transfer,it is necessary to make targeted policies for these countries and industries to reduce these transfers.

Analyzing the Value Chains of China＇s Knock-off Handset industry

Establishing a two-sided market （specialized market） is an effective way to build a national value chain （NVC）. The Chinese knock-off wireless handset industry has succeeded in building a miniature version of an NVC based on the Huaqiangbei Market, a typical specialized market. ＂Ihis paper begins b）, analyzing the differences in the industrial chains of knock-off and traditional wireless handsets and concludes that due to lacking after-sales service, the value chain of knock-off wireless handsets is consumer-driven, with a focus on manufacturing and marketing. Analysis of the knock-off wireless handset-based NVC reveals that multi-level demands, a maturing industry and adaptive innovation are three pre-conditions for Chinese manufacturing to build an NVC in a two-sided market. Given the uneven scale and techniques among knock-off handset makers, their addiction to the low-end market and imperfect value chains constructed using the ＂knockoff pattern＂ this paper proposes that China can break these bottlenecks by letting the specialized and unilateral markets develop closer to each other and by providing governmental guidance in the specialized market.

How Does Economic Policy Uncertainty Impact a Country's Position in Global Value Chains?

Economic globalization in the 21st century has been characterized by the rise and spread of global value chains(GVCs).It faces significant challenges due to increasing domestic and international policy uncertainty in the context of emerging mega risks like geopolitical tensions and climate change.This paper begins by constructing a theoretical model for an open economy to study how risk-averse firms make decisions regarding the sourcing of intermediate inputs in an uncertain environment.Our model solution proposes that firms will source fewer intermediate inputs from countries with more economic uncertainty.An increase in domestic and foreign uncertainty will have opposite impacts on a country's position in GVCs.In this sense,we argue that a country tends to move downstream along GVCs if its own economic policies become more uncertain,and it tends to move upstream with an increase in the uncertainty of its trading partner countries.Our regression analyses,based on data including the World Input-Output Database,World Development Indicators,the UN Comtrade database,and the Economic Policy Uncertainty Index,provide empirical support for this model-based conclusion.Our findings highlight that a nation must consider foreign economic policy uncertainty and maintain domestic policy stability to participate in GVCs.

Innovation systems and global value chains:A Co-citation analysis of established linkages and possible future trends

This study draws a historical picture of conceptual linkages of innovation systems(IS)and global value chains(GVC).We used a co-citation technique to map the evolution of these two fields since 1990.We highlighted the connecting nodes over the past three decades.The first decade witnessed a connection between national innovation systems(NIS)and GVC,mediated by regional studies related to industrial clusters and district-based innovation.The tradeoff between tacit sticky local and codified transferable global knowledge and innovation and learning's importance in upgrading in GVC generated two new routes in the second decade.In the last decade,although these routes are retained,their mediating nodes have changed with the literature on technology and sustainable transition from IS and the path dependency role in the evolution of districts in global production networks.Recent trends indicate that evolutionary views on economic geography and catch-up may open new opportunities to link the two,and some lessons highlight the need for more structured interactions in the future.

Sustainability Assessment of Banana (Musa spp.) Yield Gap Reduction through Value Chain Development Interventions in Smallholder Farming Systems in Manicaland, Zimbabwe

This study evaluated the effectiveness of donor supported agricultural value chain development projects in sustainably narrowing yield gaps for banana smallholder farmer producers in Manicaland, Zimbabwe. The study used a mixed methods research design that relied on farmers records for the quantitative analysis and focus group discussion and in-depth interviews for key experts for the qualitative aspects. A mix of regression analysis, t-tests, Pearsons’s correlation and analysis of variance statistical methods were used for the quantitative analysis while thematic response analysis was used for the qualitative engagements. The findings showed that by the end of the activity, the project had successfully narrowed the banana yield gaps to 18.66 tons per hectare working with a potential yield base of 40 tons. However, 5 years after the project closure the yield gap had fallen to 24.7 tons indicating a lack of sustainability of yield gap reduction. However, the yield gap slump does not override the fact that farmers on average were still able to sell approximately 5 tons per every 6 months after 5 years from the project closure which is beyond any poverty threshold. This suggests genuine upward economic mobility. Additionally, in analyzing what factors had the greatest influence on yield gap reduction, the access to fertilizer ranked highest where genetics, irrigation and improved agronomy followed in that respective order. The study further showed that farmers who receive value chain development support whilst at an already commercialized state tend to maintain productivity thresholds higher in comparison to those who are at a pre commercial state. This is evidenced by the fact that the pre commercial farmers had a yield reduction of 30.83 percent after 5 years of the project closure whereas the former realized a productivity growth of 7.84%. In conclusion, whilst the intervention was successful in transitioning farmers out of poverty, more investment should be made towards transitioning smallholder farmers to integrated soil fertility management practices and improvement of agronomic efficiency through stronger on field collaboration between research institutions, the government and development institutions.

The Global Value Chains in BRICS Countries

This paper provides indicators on the length, location, and linkages of global value chains （GVCs） across BRICS countries. These indicators are calculated at the country level using the WIOD database. We find that, as Chinese GVCs lengthen, production stages are increasingly concentrated in China. At the same time, the ＂upstreamness＂ of Chinese production stages in GVCs is also increasing. Compared with China, other BRICS countries＇ positions in GVCs remain relatively unchanged. Since 2000, a new phenomenon has emerged; i.e., some service sectors within the BRICS have begun to participate in GVCs.

Global Value Chains, Horizontal Intra-lndustry Trade and the Heterogeneous Firm

This paper examines global value chains at the level of the heterogeneous firm. The context is a world of horizontal intra-industry trade, characterized by imperfect competition and product differentiation at the firm level. Standard microeconomic tools are employed to assess the effects of inter-firm dissimilarities in both demand and supply on firms＇ responses to changes in trade policy. In this set-up, dissimilarities in firm characteristics play roles similar to factor endowments and technology differences in traditional trade models. When cross-border production sharing （＂fragmentation＂） is introduced into this framework, those differences in firm characteristics determine the degree to which individual firms will enter into production networks. In this context, horizontal and vertical intra-industry tradel elements interact in their effects on firm decisions. Traditional comparative advantage considerations still govern the choice of off-shored activities, while direct competition between imports and exports expands the range of possible outcomes. Finally, it is shown that cross-border production sharing reduces the sensitivity of firms to variations in exchange rates, matching a phenomenon that has been observed in traditional country-level models.

Global Value Chainsint he Era of Digital Economy:Trends,Risks and Countermeasures

The new technological revolution has not only created the digital economy,but has also accelerated the digital transformation of global value chains(GVCs).Digital technologies have reshaped the specialization within global value chains by reducing costs,enabling industrial chains and increasing added value in exports.However,GVCs also face salient risks in the digital economy era,as reflected in their spatial layouts.The enabling effect of digital technologies has led to the shortening and reshoring of global value chains.In value chain governance,dominant countries have imposed technological embargoes on ascendant countries,depriving them of key technologies.In the distribution of value,the imbalances in the specialization within GVCs and digital divides have aggravated global economic inequities.Given the new characteristics and risks of GVCs in the era of the digital economy,as well as the“dual circulation"'development paradigm,China's industrial chains and firms moving up the GVCs need to regard data,the fifth type of production factor,as a key to the enabling effect of the digital economy on industries.These measures will advance the digital transformation of traditional industries and the development of the digital industry,as well as allow industrial chains and innovation chains to work in tandem to facilitate favorable domestic circulation.At the firm level,enterprises should further develop endogenous innovation capacity to become leaders in innovation and free themselves from dependence on foreign sources for key technologies.

Digital Economy Development,Institutional Quality and Upstreamness of Global Value Chains

By building a composite index for measuring national digital economy development and sectoral digital intensities,this paper derives metrics of industry-level digital economy penetration under the framework of specialization within global value chains(GVCs),systematically analyzes the mechanisms through which digital economy development affects GVCs upstreamness,and examines the moderating effect of institutional quality.The study shows that different dimensions of digital economy development significantly boost GVCs upstreamness,a conclusion that holds even after accounting for endogeneity through dynamic panel models with instrumental variables based on past data.Further research shows that technological innovation capabilities and resource allocation efficiency have gradually become important channels for digital economy development to boost GVCs upstreamness.Adding indicators on institutional quality reveals that greater institutional quality not only directly promotes GVCs upstreamness but also reinforces the impact of digital economy development on higher GVCs positioning.