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.

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.

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.

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.

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.

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.

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.

Dynamic Changes of China’s Functional Specialization in Export and International Comparison under Global Value Chains

The functional specialization in export of a country(and its sectors)in different activities,such as fabrication,R&D,management and marketing,is crucial to its governance and control on the value chains,which magnifies the shortage of the existing aggregate value added studies on our understanding of global value chains(GVCs).Considering production fragmentation at both the spatial and functional levels,this paper defines the modified functional specialization indicators at the national and sectoral levels from the forward linkage(rather than backward linkage).Based on the World Input-Output Database together with the newly compiled Labor Occupations Database,this paper re-estimates and analyzes the functional specialization and changes in China and major developed economies’exports.The results show that China’s export is mainly specialized in fabrication activity,which is among the world leading level,while it is weak in headquarter activities(especially R&D and management),which is almost locked at the lowest level in the world and could not pose an export threat to the developed economies.China’s manufacturing basically follows the functional development path of“relying on fabrication,entering market,targeting management and R&D”,featuring the coexistence of“strong”fabrication and“weak”management and R&D.The fabrication specialization of the typical processing sector“electronic and optical equipment”has reached the international leading level.The level of functional specialization of China’s service industry is generally lower than that of manufacturing and generally lags behind in the world,indicating that China still has a long way to go before becoming a major power of service in the world.Finally,this paper proposes policy implications and further researches that can be extended.

Impact of Embeddedness in Global Value Chains on the Differentiation of Technological Sophistication of Exports

This paper adopts the production decomposition developed by Wang et al.(2017)and data from the World Input-Output Database(WIOD)to estimate the degrees of forward and backward participation in global value chains(GVCs)in 2000-2014 by the world’s major economies including China,and to do an empirical examination on the impact that heterogeneous forms of participation in GVCs have on the improvement of GVCs.The results show that forward participation in GVCs helps increase the sophistication of exports,while backward participation in GVCs exerts different infl uence on the sophistication of exports.While a lower level of backward participation by a country is constrained by the country’s current position in the international division of labor and thus does not help increase the sophistication of its exports,a higher level of backward participation helps break through the bottleneck of low-end locking in GVCs and increase the sophistication of exports.

Cross-border Urban Networks Based on Manufacturing Global Value Chain:A Study of Listed Companies in Western China

Cross-border investment is essential for western China’s globalization.Global value chain(GVC)forms cross-border investment networks between industries in western China and overseas cities.Focusing on GVC,this study uses the social network analysis method,entropy method,multi-index comprehensive evaluation method,and quadratic assignment procedure analysis method to examine the characteristics and influencing factors of the urban networks of research and development(R&D),production,and sales formed as a result of the overseas investments of listed manufacturing companies in western China.Results showed that the three types of investment networks involved multiple industry types and multiple central cities with differentiated diversity and multicentrality.The R&D urban network’s leading sub-industries were the mechanical equipment and instruments,medicine and biological products,and metal and nonmetal industries.The destination cities were mostly those home to educational and scientific research centers.The production urban network’s leading sub-industries were the mechanical equipment,instrument,and food and beverage industries.The destination cities were mostly regional central cities in developing countries.The sales urban network’s leading sub-industries were the mechanical equipment and instrument,metal and nonmetal,and petrochemical and plastics industries.The destination cities were numerous and scattered.In addition,the R&D urban network easily formed specialized clusters,core nodes easily controlled the production urban network,and individual nodes did not easily control the sales urban network.Technological and economic system advantages greatly impacted the three network types.Considering the different influencing factors,this study suggests optimizing the institutional investment environment to narrow the institutional gap,adjusting and optimizing the investment layout to expand overseas markets,and increasing R&D funds to stimulate technological progress and overseas investments in western China.

Small ruminant value chain in Al-Ruwaished District,Jordan

This study aims to assess the small ruminant value chain in Al-Ruwaished District,Jordan,to identify the potential intervention areas that could improve the production efficiency and guarantee the sustainability of the small ruminant sector in this area.Sheep breeding is the source of livelihood for most of the people in Al-Ruwaished District,which is characterized by the large number of sheep and goats.We surveyed 5.0% of the small ruminant holders in the study area and conducted individual interviews and surveys with the potential actors in the value chain to undertake a small ruminant value chain analysis.From the survey,we found that the small ruminant value chain consists of five core functions,namely,input supply,production management,marketing,processing,and consumption.Despite the stable impression given by the large number of holdings in the small ruminant sector,the surveyed results show a clear fragility in the value chain of small ruminants in this area.The small ruminant production system is negatively impacted by climate change,especially continuous drought.In addition,the high prices of feed that the farmer cannot afford with clear and real absence of the governmental and non-governmental support activities also impact the development of the value chain.The results of strengths,weaknesses,opportunities,and threats(SWOT)analysis reveal that the major constraints faced by this value chain could be divided into external and internal threats.Specifically,the most prominent external threats are the nature of the desert land and continuous drought,while the major internal threats are the absence of appropriate infrastructure,shortage of inputs,and weakness in the production management and marketing.We proposed solutions to these challenges to ensure the sustainability and effectiveness of the sector,such as the formulation of emergency response plans to severe weather,qualifying farmers’skills,and establishment of agricultural cooperative societies.

Local Poultry Value Chian Analysis in Somaliland

Poultry production has important economic, social and cultural benefits and plays a significant role in family nutrition in developing countries. In most tropical countries it is based mainly on scavenging production systems, which makes substantial contributions to household food security throughout the developing world. All over the developing world, these low-input and low-output poultry-husbandry systems are an integral component of the livelihoods of most rural, peri-urban, and some urban households and are likely to continue to meet this role for the foreseeable future. Although the contributions of chicken farming to household food security and income as well as its potential contribution to the income of rural communities are known, chicken production is practiced very little in Somaliland. Therefore, the purpose of this project was to carry out a baseline study on the potential of chicken production (eggs and meats) in Somaliland and its existing chain gaps in order to identify whether chicken production could be a successful income source for women and boost female economic activity in the project areas of Saaxil, MaroodiJeex and Togdheer. The result from this assessment showed that rural chicken production was a women-related activity that helped them to be the sole decision-makers and also users of the benefits regarding chicken and chicken products. The main purposes for keeping chicken were egg production for income generating, home consumption and meat provision. The major constraints for rural poultry keeping were the lack of extension and veterinary services, predators, poor housing, poor breeds, and lack of financial services among others. Women in all the selected villages made remarkable contributions to the local chicken production system. The result of the assessments showed that indigenous poultry value chain consisted of producers, collectors/retaileres, shops and consumers/restaurents. However, the absence of processors along the chain means that chickens are sold live and consequently cannot be retailed through formal channels like supermarkets leading to the exclusion of potential customers in the middle and high income categories who normally shop from supermarkets. Furthermore, as population and incomes grow, demand for indigenous chicken is likely to continue growing, especially among the high income groups who not only prefer it for its taste but also for health reasons due to its low fat content. Finally, although the value chain for indigenous chickens shows potential growth for all the players along the chain, there is a need to address the various constraints affecting the value chain for indigenous chickens in order to improve the operation of the chain hence leading to increased incomes for the value chain actors and at the same time ensuring cheap delivery of indigenous chicken in a more convenient form and in formal outlets.

A Study on the Factors Influencing Value-Added in the Cruise Ship Value Chain Based on the DEMATEL-ISM Model

Cruise value chain is to take the exchange of cruise products and services as the core in a certain spatial scope,and enterprises with core advantages within or between different industries establish associations in accordance with certain technical and economic conditions,so as to realise the multi-dimensional extension and value appreciation of the cruise value chain in the vertical and horizontal links,and ultimately establish a chain-network type of enterprise strategic alliance.This paper tries to analyse the value-added factors of the cruise industry chain by constructing a multi-level hierarchical structural model with reference to the influencing factor analysis methods of relevant literature-DEMATEL(Decision Making Experiment and Evaluation Experiment)and ISM(Interpretative Structural Model).The study shows that the innovation and scale value-added module in the upstream of the cruise industry chain is the core module of value-added of the whole cruise industry chain,and the value-added mainly originates from the design and manufacturing of cruise ships.The middle reaches of the cruise industry chain are mainly cruise operation enterprises,and the specificity of cruise operation determines that its brand value-added is mainly accomplished through the global layout of multinational corporations,and the cruise brand is able to drive the consumption demand and has value-added ability.The downstream value-added of the cruise industry chain is mainly realised through the increase in profits of cruise tourism service products.