Globalisation, value chains and development institute of. One of the key integrating forces was antras and helpman. A primer second edition pp 305342 by gary gereffi, professor of sociology and director of the global value chains center at duke university, durham, usa. A holistic approach 6 global value chain analysis provides both conceptual and methodological tools for examining the global economy topdown. Globalization has transformed how nations, firms and workers compete in the international economy over the past half century. However, the value that has been added is only 110 units. Effects of the 20082009 crisis on the automotive industry in developing countries. As policy makers and researchers alike have come to understand the pros and cons of the spread of globalization, the gvc framework has gained importance in tackling new industry realities such as the role of emerging economies. Conceptual aspects of global value chains harvard university.
Gains from globalisation edited by gary gereffi and raphael kaplinsky. Global value chain analysis provides both conceptual and methodological tools for looking at the global economy. It is normally related to several lines of business or industry, and thus forms a bigger value chain network. Identifying global value chain governance determinants in. In july 2016, duke cggc released the 2nd edition of global value chain analysis. A global value chain perspective chapter, edited book. The agricultural value chain concept has been used since the beginning of the millennium, primarily by those working in agricultural development in developing countries. On the value chain and international specialization of china. The detailed value chain is much more complicated than the one mentioned above. Global value chain analysis a primer the value chain describes the full range of activities that firms and workers perform to bring a product from its conception to end use and beyond. Handbook on global value chains edward elgar publishing. The previous version, released in may 2011, presents key gvc concepts applied by duke cggc in a simple and expository style. They show how international investment and trade create crossborder production networks that link countries, firms and workers around the globe. Global value chain analysis second edition dukespace.
This book provides a gendered analysis of the horticulture, tourism, and call center global value chains. Multinationals and modernisation of domestic value chains. Conventional measures would also show that c has a trade deficit of. Apr 23, 20 economic upgrading in the apparel value chain can be portrayed as a smile curve in which the highest value added activities are in the preproduction research and development, design and postproduction brand marketing, logistics, services stages of the production process see. On the value chain and international specialization of. Overview of global value chain analysis canadaindonesia. Research reports, publications and presentations, 200910. In his early work based on research on east asian garment firms, gary gereffi, the pioneer in value chain analysis, describes a process of almost natural learning and upgrading for the firms which participated in gvcs.
Global value chain analysis is constituted by four dimensions, as discussed below. This book by gary gereffi, one of the founders of the global value chains gvc framework, traces the emergence of arguably the most influential approach used to analyze globalization and its impacts. Gereffi introduces the perspective of the global commodity chain. Economic and social upgrading in global value chains and. Apr 01, 2017 coordination of actors in the value chain. Value chain analysis methodologies in the context of. May 31, 2011 pdf on may 31, 2011, gary gereffi and others published global value chain analysis. Developing countries and the crisis chapter, edited book. Well known is porters concept of the value chain, gereffi s global commodity. Gereffi 2005 put forward the world value chain concept, including. In his early work based on research on east asian garment firms, gary gereffi, the pioneer in value chain analysis, describes a process of almost natural learning and upgrading for.
Introduction to the handbook on global value chains stefano ponte, gary gereffi, gale rajreichert part i. Presentation based on discussion paper prepared by. The first references to the concept of a global value chain date from the mid1990s. Gereffi 1999 considers the global apparel value chain to be a buyerdriven linear chain. A primer by gary gereffi and karina fernandezstark. Environmental defense fund edf 2010 a value chain analysis of the sinaloa, mexico shrimp fishery kristin dubay, saori tokuoka and gary gereffi. Although there is no universally accepted definition of the term, it normally refers to the whole range of goods and services necessary for an agricultural product to move from the farm to the final customer or consumer. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition. In his early work based on research on east asian garment firms, gary gereffi, the pioneer in value chain analysis, describes a process of. By gary gereffi, professor of sociology and director of the global value chains center at duke university, durham, usa. As cheaper locations vie to join chains, those already participating must develop strategies to.
Jul 25, 2017 1 introduction to global value chain gvc analysis what they are why they are important and their benefits usefulness for policymakers determinants of participation and policy levers 2 approach to gvc analysis global aspects local aspects governance and stakeholders data sources 3 questions and next steps. The value chain the term value chain was used by michael porter in his book competitive adva n tage. Gereffi distinguished between two idealtypical governance structures. In value chain analysis the concept of upgrading is used to identify the possibilities for. Global value chains in a postwashington consensus world gary gereffia a department of sociology, duke university, durham, nc, usa published online. Industry global value chains, connectivity and regional. Gary gereffi, john humphrey, raphael kaplinsky and timothy. The activities that comprise a value chain can be contained within a. In fact, country a generated 100 units of value added while country b generated only 10 units, which is the difference between the value of final goods 110 and the value of inputs 100 used in the production.
Examination of how to combine operation modes in the different activities involved in the global value chain. Value chain is a robust methodology for exploring various aspects of the economyenvironment interface and a useful complement to. In its most basic form, a value added chain is the process by which technology is combined with material and labor inputs, and then processed inputs are assembled, marketed, and distributed. Industry global value chains, connectivity and regional smart. The concept of a value chain has been used to analyze international trade in global.
The global apparel value chain, trade and the crisis. Why the world suddenly cares about global supply chains. Early references were enthusiastic about the upgrading prospects for developing countries that joined them. The summary of individual chapters that follows cannot possibly do justice to the. Gary gereffi, john humphrey, raphael kaplinsky and timothy j. This includes activities such as design, production, marketing, distribution and support to the final consumer.
It studies the conceptual foundations of gvc analysis, the twin. A global value chain approach karina fernandezstark, penny bamber and gary gereffi. Value chain analysis has been influenced by both internal and external forces which help to study each and every aspect of. Table 1 offers a succinct summary of some of the key ideas in this paper. Value chains at the scale of supranational regions often operate at the level of trade blocs, and global value chains operate in two or more regional blocs. Lithiumion batteries for hybrid and allelectric vehicles.
Much has been written on global value chains gvcs over the past few years. Global value chain analysis provides both conceptual and methodological tools for examining the global economy topdown. Pdf global value chains and development semantic scholar. Sep 17, 2015 the concept of global commodity chain was later introduced for describing the apparel commodity chain spread across the globe. The development of global value chains gvcs and their economic impact on countries. The global apparel value chain, trade and the crisis challenges and opportunities for developing countries gary gereffi stacey frederick the world bank development research group trade and integration team april 2010 wps5281 public disclosure authorized public disclosure authorized public disclosure authorized public disclosure authorized.
Analysis of the role of lead firms in control, coordination and distributing value. A primer find, read and cite all the research you need on researchgate. In the 2000s, there was a shift in terminology from the global commodity chain to the global value chain, combining the analysis of trade and industrial organization as a value added chain. Egypt, iran, saudi arabia, syria and united arab emirates comparative analysis of wheat gvcs and food security strategies in five countries goal. Value chain mapping identification of global actors and institutions countrylevel case studies. Our analysis yields the following key findings about the value chain. Global value chain gvc analysis initially focused on the commercial dynamics between firms in different segments of the production chain.
The origin of value chain analysis is discussed from two distinct traditions. A primer was released five years ago may 2011 in order to provide an overview of the key concepts and methodological tools used by duke. Global value chains, economic upgrading, and gender. Gary gereffi, professor emeritus of sociology at duke university, discusses chinas movement up global value chains, how bri may change gvcs and how gvcs can. Global value chains in a changing world world trade organization. Within value chain analysis there is a proliferation of overlapping names and concepts. What is and how to do global value chain analysis citeseerx. Pdf on may 31, 2011, gary gereffi and others published global value chain analysis. Coordination of operation modes in the value chain. Gary gereffi and timothy sturgeon look at the scope for industrial policy linked to g. The chain of trade policy results and the pivotaltransmission role of gvcs. The concepts of a global value chain gvc and global supply chain refer to the people, roles.
Food system dynamics 8 4, 2017, 317335 318 to the regulations affecting the interaction of the value creation at the national or international level and 4 governance structures which are largely concerned with the distribution of financial, material, and human resources within a value chain and their influence on the interaction and cooperation of the. The paper highlights that mapping interconnected industry capabilities at a global scale and gvc analysis requires the. During the past decade, interest and use of the gvc framework have grown exponentially among academics, development practitioners, policymakers and a wide range of international organizations and agencies concerned with economic, social and environmental issues. Joining, upgrading and being competitive in global value chains.
Multinational corporations and global value chain analysis. By stefano ponte, gary gereffi and gale rajreichert. Gary gereffi 1 shifting forms of value chain governance competition in the global economy is forged by the interaction between three broad sets of factors. Economic upgrading involves increasing the value generated from a countrys engagement in the chain, using either the firm or the industry as the unit of analysis. A value chain describes the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond. Thirdly, methodology in elaborated and findings with their discussions are fourthly offered. A seminal distinction was made between producerdriven and buyerdriven commodity chains gereffi 1994. Global value chains and upgrading centro rossi doria. Oct 10, 2019 this chapter provides an overview of the key concepts and methodological tools used in gvc analysis. Restructuring global value chains chapter, edited book. Multinationals and modernisation of domestic value chains in. Global value chains, economic upgrading, and gender case studies of the horticulture, tourism, and call center industries edited by cornelia staritz and jose guilherme reis. Edited by stefano ponte, gary gereffi and gale rajreichert global value chains gvcs are a key feature of the global economy in the 21st century.
Ecommerce and industrial upgrading in the chinese apparel value chain. Jul 26, 2012 the key dynamics of contemporary global supply chains and their implications for global production and trade are illustrated by. Global value chains and development cambridge core. Governance can be defined as nonmarket coordination of economic activity. Value chain management refers to the power and ability to realise control along the chain. Abstract this paper examines the impact of two crises on the global apparel value chain.
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