Global Supply Chain Governance and the Future of Globalization

Over the past 30 years or so,globalization has been underpinned by ever-evolving supply chains.The heightened attention to supply chain issues in recent years has been due to a series of global events in the world that have had a significant and profound impact.Factors such as the COVID pandemic,the Ukraine Crisis and increased geopolitical tensions have led to supply chain crises globally or regionally.

Production Chain Length and PPI-CPI Divergence:Analysis Based on the Global Input-output Price Model

Productivity and international energy price shocks are reflected in PPI and CPI via industrial chains.China’s in-depth participation into the global value chains has increasingly lengthened its industrial production chains.The question is how the changing length of production chains will affect CPI and PPI,as well as CPI-PPI correlation?By constructing a global input-output price model,this paper offers a theoretical discussion on the impact of production chain length on the CPI-PPI divergence.Our findings suggest that the price shock of international bulk commodities has a greater impact on China’s PPI than that on CPI.The effects on both China’s PPI and CPI estimated by using the single-country input-output model are higher than the results estimated with the global input-output model.However,the difference between CPI and PPI variations estimated with the global input-output model is greater than the result estimated with the single-country input-output model,which supports the view that the lengthening of production chains,especially international production chains,leads to a divergence between CPI and PPI.Empirical results based on cross-national panel data also suggest that the lengthening of production chains has reduced the CPI-PPI correlation for countries,i.e.the lengthening of production chains has increased the PPI-CPI divergence.That is to say,policymakers should target not just CPI in maintaining price stability,but instead focus on the stability of both PPI and CPI.Efforts can be made to proactively adjust the price index system,and formulate the industrial chain price index.

Ensure the Stability and Smoothness of Global Supply Chain

In 2024,the world economy still faces many uncertainties,and it is likely that the geopolitical economy and global security tensions are likely to continue to intensify;although the global inflation rate is declining,it is still at a high level;the global debt crisis has risen sharply;in particular,the risk of decoupling and chain breakage of the industrial chain and supply chain still exists.

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.

‘Partly'globalized networks and driving mechanism in resource-based state-owned enterprises:A case study of J Group

In the context of economic globalization,while multinational enterprises from developed countries occupy a high-end position in the global value chain,enterprises from developing countries are often marginalized in the world market.In China,resource-based state-owned enterprises(SOEs)are tasked with the mission of safeguarding resource security,and their internationalization development ideas and strategic deployment are significantly and fundamentally different from those of other non-state-owned enterprises and large multinational corporations.This study provides ideas for the globalization policies of enterprises in developing countries.We consider J Group in western China as a case and discuss its productive investment and global production network development from 2010 to 2019.We found that J Group was‘Partly'globalized,and there are multiple core nodes with the characteristics of centralized and decentralized coexistence in the production network;in addition,the overall layout centre shifted to Southeast Asia and China;however,its global production was restricted by the enterprise's investment security considerations,support and restrictions of the home country,political security risk of the host country,and sanctions from the West.These findings provide insights for future research:under the wave of anti-globalization and'internal circulation as the main body',resource SOEs should consider the potential risk of investment,especially keeping the middle and downstream industrial chain in China as much as possible.

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.

Global Value Chain Restructuring:Challenges,Opportunities and Strategies for China

Global value chains(GVCs)have entered a new stage of restructuring characterized by trends towards localization,regionalization and diversification.These trends can be attributed to the evolution of the international division,irrational responses to crisis shocks,and trade protectionism.In this context,China’s industrial and supply chain upgrades face both opportunities and challenges which require navigating the adverse effects of industrial re-shoring,unfair technology competition,and changes in the global industrial layout.Yet,such challenges may create pressures for China to accelerate innovation,overcome the low-end lock-up effect by creating regional value chains,and broaden international cooperation.China needs to explore an effective strategy to defuse risks and seize opportunities.On one hand,China should influence the restructuring of GVCs evolution and strengthen its supply chains by playing an active role in economic globalization and the international division.On the other hand,China should proactively respond to GVCs restructuring amid rising trade protectionism,defuse risks from trade protectionism by opening wider to the outside world,and strive to upgrade industrial and supply chains while enhancing the security and stability of their nation.

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.

Spatial Interaction Between the Industrial Undertaking Capacity and Global Value Chain Position of East Asian Countries

A comprehensive understanding of the spatial interaction between the industrial undertaking capability and the position of the global value chain of the 12 East Asian countries is conducive to strengthening regional cooperation, gaining a say in foreign trade and becoming the dominant player in the global division of labor system. The article reveals the operating rules of the interaction between the industrial undertaking capacity and the global value chain position of East Asian countries by calculating the Global Moran Index(Moran’s I), coupling coordination degree and other indicators. The results show that: in time, the values of industrial undertaking capacity and the positions of global value chain in East Asian countries showed a sustained and stable growth trend, and have a consistent trend of change. Spatially, both of the two indexes had significant positive spatial correlation, with Moran’s I showing an ‘inverted U’pattern, and the spatial aggregation distribution of global value chain position lagged behind the spatial aggregation distribution of industrial undertaking capacity by one year. In terms of spatial coupling coordination, the coupling coordination values of the two indicators show a steady upward trend. Combined with the comparative advantage of each country, this paper provides suggestions for promoting the positions of Chinese and other East Asian industries in the global value chain from the perspectives of enhancing independent innovation capability and upgrading industrial structure.

Effects of Global Value Chain Position on the Carbon Emissions of Manufacturing Industry in China: An Empirical Study Based on the STIRPAT Model

Based on the input-output data from the World Input-Output Database( WIOD),the global value chain( GVC) position of China's manufacturing industry from 2003 to 2014 was calculated,and the relationship between the carbon emissions and global value chain position of China's manufacturing industry was studied based on the improved STIRPAT model. The results show that the improvement of global value chain position could significantly reduce the carbon emissions of China's manufacturing industry. In addition,foreign investment and energy structure hindered the low-carbon development of China's manufacturing industry. The effects of population size and research intensity on the carbon emissions of manufacturing industry were not significant. In the process of participating in the global value chain,China's manufacturing industry should effectively reduce carbon emissions by strengthening environmental regulation,optimizing energy structure and improving production technology.

Re-Evaluation of China＇s Service Trade Competitiveness： A Global Value Chain Perspective

Based on the Worm Input-Output Database （WIOD）, this paper conducts a forward-linkage decomposition of value-added in trade to estimate China＇s service value-added exports and its service sector＇s international competitiveness during 2000- 2014. Result indicates that during the sample period, China＇s service exports measured by forward-linkage decomposition method accounted for around 35% in its total export. While the value of services exported directly through the service sector accounted for a falling share, the value of services exported through other sectors represented an increasing share. China ranks second in the world in terms of market share of service exports. However, the revealed comparative advantage （RCA） of China＇s service exports and export sophistication remains limited.

The Impact of Outsourcing on Local Industry Upgrading: a Case of China from a Global Value Chain Perspective

This paper develops a conceptual model to assess effect of outsourcing by integrating the theories of industrial upgrading and global value chain (GVC) governance. Contrary to the widely accepted perception that outsourcing is expected to generate positive spillover in particular, the findings indicate that outsourcing has different effects in different GVC governance modes. Excess outsourcing could structurally inhibit technology and management spillovers to subcontractors within the emerging economy context. Based on a case study of the Chinese textile and apparel (T & A) industry, it is found that the Chinese T & A industry has been trapped in the captive governance relationship with foreign buyers, and at the same time is capped below the function upgrading level. Consequences of the situation and implication are then discussed.

Parameterless Pruning Algorithms for Similarity-Weight Network and Its Application in Extracting the Backbone of Global Value Chain

Purpose:With the availability and utilization of Inter-Country Input-Output(ICIO)tables,it is possible to construct quantitative indices to assess its impact on the Global Value Chain(GVC).For the sake of visualization,ICIO networks with tremendous low-weight edges are too dense to show the substantial structure.These redundant edges,inevitably make the network data full of noise and eventually exert negative effects on Social Network Analysis(SNA).In this case,we need a method to filter such edges and obtain a sparser network with only the meaningful connections.Design/methodology/approach:In this paper,we propose two parameterless pruning algorithms from the global and local perspectives respectively,then the performance of them is examined using the ICIO table from different databases.Findings:The Searching Paths(SP)method extracts the strongest association paths from the global perspective,while Filtering Edges(FE)method captures the key links according to the local weight ratio.The results show that the FE method can basically include the SP method and become the best solution for the ICIO networks.Research limitations:There are still two limitations in this research.One is that the computational complexity may increase rapidly while processing the large-scale networks,so the proposed method should be further improved.The other is that much more empirical networks should be introduced to testify the scientificity and practicability of our methodology.Practical implications:The network pruning methods we proposed will promote the analysis of the ICIO network,in terms of community detection,link prediction,and spatial econometrics,etc.Also,they can be applied to many other complex networks with similar characteristics.Originality/value:This paper improves the existing research from two aspects,namely,considering the heterogeneity of weights and avoiding the interference of parameters.Therefore,it provides a new idea for the research of network backbone extraction.

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.

THE GLOBAL TECTONIC SYSTEMS AND A LATITUDINAL MOUNTAIN-PLATEAU CHAIN ON THE NORTH HEMISPHERE

Three global tectonic systems that formed since the middle Jurassic (160Ma ago)are outlined based on the global map of the Cenozoic and Mesozoic tectonics edited by Ma Zongjin et al.(1996).They are the circum\|Pacific tectonic system,the mid\|ocean ridge tectonic system and the intra\|continental tectonic system of the north hemisphere.The map shows that about 80% of the total length of the continental orogens are concentrate on the north hemisphere of the earth,of which a latitudinal mountain\|plateau chain occur within a zone between north latitude 20°and 50°.Seismic and volcanic activities demonstrate that the intracontinental tectonic system on the north hemisphere is still active.Whilst distribution of the continental deep\|focus earthquakes and almost ultra high\|pressure rock found so far over the World,that are assumed both related to recent or previous deep subduction of continent,along with this zone.The latitudinal mountain\|plateau chain is subdivided into four active tectonic region of Qinghai—Xizang(Tibet),Iranian,eastern mediterranean and North American,both characterized by an individual similar mountain\|plateau\|basin structure with major active boundaries or controlling faults (Fig.1).These active regions are all close to primary dynamic boundaries of continent\|continent collision.Solution of source mechanisms shows that regional tectonic stress field in these regions are dominated by a nearly NS or NNE—SSW direction compression corresponding to a local plate motions and a global compressive zone.Correlation between the formation of the continental latitudinal mountain\|plateau chain on north hemisphere and the oceanic plate tectonics is discussed using the information of the “Map of Magnetic Lineations of the World’s Ocean Basins (Cande et al.,1989)”and the Cenozoic and Mesozoic tectonic evolution in the continents.Total 49 accretion units formed during 6 accretion stages of the ocean spreading in three chief oceans (the Pacific,the India and the Atlantic)si nce 160Ma ago,are subdivided.The distinguished oceanic accretion tectonics in combination with the geometrical and kinematics data of adjust continental f ragments allowed outline of the development of the continental latitudinal tecto nic zone of north hemisphere.Whilst,two global asymmetrical geodynamic systems of north\|south an east\|west direction,that may be composed of meridional conve ction,latitudinal convection and inertial flow resulting from the variation of the Earth’s rotational velocity,are used to discuss on the two global geodynamic systems in which the intracontinental latitudinal tectonic zone developed.

Study on the Improvement of Performance of Global Supply Chain Based on Quantity Flexibility Revenue Sharing Contract

The main propose of this study is to manage the demand risk and the exchange rate risk at the same time. Based on a two-echelon decentralized global supply chain,combined with the model equilibrium,this paper studies the difference between the quantity flexibility contract and the revenue sharing contract. By the transmitting of exchange rate risk,it discusses the node-enterprises' optimal strategies. Hence,it designs a quantity-flexibility-revenue-sharing contract to improve the performance of this global supply chain. The result shows that both the quantity flexibility contract and the revenue sharing contract cause the exchange rate risk to transfer from one enterprise to the other; the exchange rate risk will have different impact on the quantity flexibility contract and the revenue sharing contract because of the difference in the transfer payments at the end of the sales season; by designing a hedging strategy with these two different transfer payments,the quantity-flexibility-revenue-sharing contract can manage the demand risk and the exchange rate risk at the same time.

Comparison on global supply chain purchasing strategies based on supply contracts

In the global supply chain in a setting characterized by exchange rate uncertainties,it is quite necessary to focus on comparative research trying to find out which kind of purchasing strategy is better in different situations.The two common global purchasing strategies,risk sharing(RS)and quantity flexibility(QF),are selected to be compared.Using a real-options approach,the valuation models of RS and QF purchasing contracts are established.By means of binomial lattice technique,numerical simulation and sensitivity analysis of two stochastic dynamic programs are presented.The effects on expected discounted value by changing relative parameters are described clearly.Based on comparative analysis,it is concluded that the QF purchasing strategy is better than that of the RS especially where great volatility exists for exchange rate processes in the global supply chain.

Global Value Chain Embeddedness,Knowledge Spillovers,and Clustered Firms' Innovation Performance

Empirical evidence of the effects of global value chain( GVC) embeddedness on clustered firms' innovation is presented in this paper. The intermediary roles of the two types of knowledge spillover( explicit and implicit) in GVC embeddedness and clustered firms' innovation are considered, and the effects of structure embeddedness,relationship embeddedness,and acknowledgement embeddedness on clustered firms' innovation are examined. Analysis is based on the sample of 134 export-oriented firms from the Shaoxing industrial cluster in Zhejiang province of China. Results show that although GVC embeddedness is associated with high use of external knowledge sources,clustered firms' innovation is promoted indirectly through explicit knowledge spillover. Intrinsic connections exist among the different dimensions of GVC embeddedness,that is,structure embeddedness not only directly improves relationship embeddedness but also indirectly improves acknowledgement embeddedness through relationship embeddedness.

The Usage of Social Media and E-Reputation System in Global Supply Chain: Comparative Cases from Diamond &Automotive Industries

The last decade witnesses a heave use of social media-based information systems in different fields of business such as logistics, procurement, and supply chain management. Managing these types of information systems, could help companies to outsource their supply chain functions in a global scale and enhance their competitive advantages. However, the digital performance of these activities inherent risks of inappropriate supplier selection, lack of trust, bounded rationality and uncertainty about the supply conditions (e.g., pricing, shipping and timing). To address such challenges, this research explains how companies use e-reputation systems and social media to select their global trusted suppliers. Based on two-case evidence from British Diamond and Egyptian Automotive companies, the researchers conducted 20 interviews with purchasing and supply chain professionals. Chen & Lin’s reputation system model has been adopted to explain the process of selecting and evaluating a trusted supplier and to inform our data analysis. Our findings referred to the lack of experience among diamond professionals on how to use e-reputation systems and their lack of understanding to the role of social media-based ratings or referrals during the stages of selection suppliers’ discovery and approval. Though, automotive professionals find e-reputation system a strong tool to build goodwill, tacit credibility, competence and predictable trust. Ironically, both cases confirm that supply chain professional use these systems to re-evaluate and reselect their existing suppliers than to extend new supply networks.

Myths and realities of China's apparel industry——from a global value chain perspective

Rising export and market shares and rampant bankruptcies coexist in China's apparel industry.Against the backdrop of the global value chain,the by-country industrial competitiveness evaluation system based on final products is failing.Using the global value chain theory,this article investigates the international competitiveness of China's apparel industry and introduces the case study of Nike's global value chain,reaching the conclusion that existing evaluations have exaggerated the international competitiveness of China's apparel industry.China's apparel industry is at the lowest level of the global value chain,and most local enterprises have not entered the mainstream global value chain and are still internationally uncompetitive.As far as China's current economic development level and targets are concerned,it may be too unrealistic to discuss industrial upgrading entirely from the perspective of OEM-ODM-OBM.China's apparel producers should stick to both paths:one is the priority to strengthen manufacturing and OEM;the other is to do more learning to go beyond sub-contract manufacturing and prepare for long-term growth of OBM.Building middle and high-end apparel producers and creating local brands by virtue of China's status as a big country is the right path for development given the industry's present situation.