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Global value chains in the least developed countries of the world: threats and opportunities for local producers

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  • Carlo Pietrobelli
Abstract
Global value chains (GVCs) often represent one of the few options for local firms and suppliers in developing countries to get access to larger markets and to new technologies. While the potential benefits from GVCs for medium-income developing countries are well documented, the studies dealing with the impact of GVCs on low-income, poorer countries are scarce. To explore these issues, the paper uses primary and secondary empirical evidence and discusses how GVCs may affect upgrading, technological capabilities and competitiveness in the least developed countries (LDCs). This paper suggests that the opportunities exist, but are hardly utilised, and depend on a number of circumstances that may or may not occur. Public policies have an important role to play to improve the prospects of leveraging these opportunities and raising the probability of a positive effect on local firms. This paper focuses on the prospects of upgrading in natural resource-intensive LDCs from their participation in GVCs, and argues in favour of capacity building for policy formulation and implementation, strengthening the national standards infrastructure, defining the research priorities and disseminating research results to small- and medium-sized enterprises, and suggests that cluster-based development policies may offer better perspectives.

Suggested Citation

  • Carlo Pietrobelli, 2008. "Global value chains in the least developed countries of the world: threats and opportunities for local producers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(4), pages 459-481.
    • Handle: RePEc:ids:ijtlid:v:1:y:2008:i:4:p:459-481
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    Citations

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    Cited by:

    1. Loe Franssen, 2020. "Capturing Value in South–South and South–North Value Chains: Evidence from East Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 939-975, September.
    2. Emanuele Brancati & Carlo Pietrobelli & Caio Torres Mazzi, 2024. "The Influence of value chain governance on innovation performance: A study of Italian suppliers," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(2), pages 319-344, June.
    3. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    4. Bratti, Massimiliano & Felice, Giulia, 2018. "Product innovation by supplying domestic and foreign markets," International Journal of Industrial Organization, Elsevier, vol. 60(C), pages 126-178.
    5. Chi-Han Ai & Hung-Che Wu, 2017. "Cross-Regional Corporations and Learning Effects in a Local Telecommunications Industry Cluster of China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 337-355, March.
    6. Stubrin, Lilia, 2017. "Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 54(C), pages 167-175.
    7. Nebojša Stojčić & Ivan-Damir Anić & Tonći Svilokos, 2021. "The entrepreneurial gains from market integration in the new EU member states," Small Business Economics, Springer, vol. 57(3), pages 1-20, October.
    8. Gehl Sampath, Padmashree & Vallejo, Bertha, 2018. "Global Value Chains and Upgrading: What, When and How?," MERIT Working Papers 2018-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Debapriya Bhattacharya & Khondaker Golam Moazzem, 2013. "Least Developed Countries (LDCs) in the Global Value Chain (GVC): Trends, Determinants and Challenges," CPD Working Paper 104, Centre for Policy Dialogue (CPD).
    10. Lucia Tajoli & Giulia Felice, 2018. "Global Value Chains Participation and Knowledge Spillovers in Developed and Developing Countries: An Empirical Investigation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 505-532, July.
    11. Yasmine Eissa & Chahir Zaki, 2023. "On GVC and innovation: the moderating role of policy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(1), pages 49-71, March.
    12. Padmashree Gehl Sampath & Bertha Vallejo, 2018. "Trade, Global Value Chains and Upgrading: What, When and How?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 481-504, July.
    13. Sushant Acharya & Sagar Raj Sharma & Bishnu Raj Upreti & Marie-Luise Matthys, 2021. "Why Nepal’s main agricultural export product, large cardamom, does not reach the world market," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
    14. Carlo Pietrobelli & Cornelia Staritz, 2018. "Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 557-574, July.
    15. Nájera, Joselyne, 2017. "Integration of Small Farmers Into Global Value Chains: Challenges and opportunities inside the current global demand," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 11(2), pages 7-16.
    16. Alexander BORDA-RODRIGUEZ & Sara VICARI, 2015. "Coffee Co-operatives in Malawi: Building Resilience Through Innovation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(2), pages 317-338, June.
    17. Carlo Pietrobelli, 2009. "Dualism and Power in Agriculture Scientific and Technological Development," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    18. Navas-Alemán, Lizbeth & Pietrobelli, Carlo & Kamiya, Marco, 2012. "Inter-Firm Linkages and Finance in Value Chains," IDB Publications (Working Papers) 4067, Inter-American Development Bank.
    19. Stubrin, Lilia, 2018. "Reprint of: Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 58(C), pages 62-70.
    20. Kiamehr, Mehdi, 2017. "Paths of technological capability building in complex capital goods: The case of hydro electricity generation systems in Iran," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 215-230.
    21. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.

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