Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v48y2019icp7-23.html
   My bibliography  Save this article

Structural change, trade and global production networks: An ‘appropriate industrial policy’ for peripheral and catching-up economies

Author

Listed:
  • Landesmann, Michael A.
  • Stöllinger, Roman
Abstract
The global economy has been undergoing rapid structural change: the impressive development processes in a range of emerging economies have induced strong shifts in global trade shares; international production networks (IPNs) are characterising regional and global trading relationships and we observe also persistent changes in the positions of countries in global value chains due to rather rapid technological and human capital up-grading. The aim of this paper is to assess these developments, but also discuss the importance of – what we call – ‘appropriate industrial policy’ (AIP) for countries at different developmental stages to support their position in the current global context. We shall emphasise in particular the role of AIP for European low- and medium-income economies (LMIEs) as the recent financial and economic crisis has shown that they are particularly vulnerable with respect to ‘structural external imbalances’ and thus policies to support their tradable sectors are of great importance.

Suggested Citation

  • Landesmann, Michael A. & Stöllinger, Roman, 2019. "Structural change, trade and global production networks: An ‘appropriate industrial policy’ for peripheral and catching-up economies," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 7-23.
    • Handle: RePEc:eee:streco:v:48:y:2019:i:c:p:7-23
    DOI: 10.1016/j.strueco.2018.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X17302382
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2018.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    2. Jan Fagerberg & Bart Verspagen & G. N. von Tunzelmann (ed.), 1994. "The Dynamics Of Technology, Trade And Growth," Books, Edward Elgar Publishing, number 163.
    3. Elhanan Helpman, 2006. "Trade, FDI, and the Organization of Firms," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 589-630, September.
    4. O’Rourke, Kevin H. & Williamson, Jeffrey G., 2002. "When did globalisation begin?," European Review of Economic History, Cambridge University Press, vol. 6(1), pages 23-50, April.
    5. Felipe, Jesus & Kumar, Utsav & Abdon, Arnelyn, 2013. "Exports, capabilities, and industrial policy in India," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 939-956.
    6. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    7. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    8. Michael Landesmann & Doris Hanzl-Weiss, 2016. "Correcting external imbalances in the European economy," Chapters, in: Marek Belka & Ewald Nowotny & Pawel Samecki & Doris Ritzberger-Grünwald (ed.), Boosting European Competitiveness, chapter 3, pages 14-36, Edward Elgar Publishing.
    9. Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(1), pages 81-116, February.
    10. Robert H. Wade, 2012. "Return of industrial policy?," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 223-239, November.
    11. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    12. Richard Baldwin, 2011. "Trade And Industrialisation After Globalisation's 2nd Unbundling: How Building And Joining A Supply Chain Are Different And Why It Matters," NBER Working Papers 17716, National Bureau of Economic Research, Inc.
    13. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    14. repec:bla:devpol:v:27:y:2009:i:5:p:483-502 is not listed on IDEAS
    15. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    16. Philippe Aghion & Julian Boulanger & Elie Cohen, 2011. "Rethinking industrial policy," Policy Briefs 566, Bruegel.
    17. Dani Rodrik, 2009. "Industrial Policy: Don’t Ask Why, Ask How," Middle East Development Journal, Taylor & Francis Journals, vol. 1(1), pages 1-29, January.
    18. Paul Collier & Anthony J. Venables, 2007. "Rethinking Trade Preferences: How Africa Can Diversify its Exports," The World Economy, Wiley Blackwell, vol. 30(8), pages 1326-1345, August.
    19. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    20. Baldwin, Richard & Robert-Nicoud, Frédéric, 2014. "Trade-in-goods and trade-in-tasks: An integrating framework," Journal of International Economics, Elsevier, vol. 92(1), pages 51-62.
    21. Hubert Gabrisch & Doris Hanzl-Weiss & Mario Holzner & Michael Landesmann & Johannes Pöschl & Hermine Vidovic, 2016. "Improving Competitiveness in the Balkan Region – Opportunities and Limits," wiiw Research Reports 411, The Vienna Institute for International Economic Studies, wiiw.
    22. Sanjaya Lall, 2000. "The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-98," Oxford Development Studies, Taylor & Francis Journals, vol. 28(3), pages 337-369.
    23. Dominique Foray, 2013. "The economic fundamentals of smart specialisation," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 83(02), pages 55-82.
    24. Karl Aiginger, 2013. "A Southern Europe strategy based on vision and industrial policy," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 82(01), pages 127-168.
    25. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, April.
    26. Mr. Andrew Berg & Mr. Paolo Mauro & Mr. Michael Mussa & Mr. Alexander K. Swoboda & Mr. Esteban Jadresic & Mr. Paul R Masson, 2000. "Exchange Rate Regimes in an Increasingly Integrated World Economy," IMF Occasional Papers 2000/011, International Monetary Fund.
    27. Marco Percoco, 2013. "Strategies of regional development in European regions: are they efficient?," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 303-318.
    28. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grodzicki, Maciej J. & Skrzypek, Jurand, 2020. "Cost-competitiveness and structural change in value chains – vertically-integrated analysis of the European automotive sector," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 276-287.
    2. Banacloche, Santacruz & Cadarso, María Ángeles & Monsalve, Fabio, 2020. "Implications of measuring value added in exports with a regional input-output table. A case of study in South America," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 130-140.
    3. Chen, Wei & Niu, Xiaoyu & Ke, Wenqian & Yu, Zhaoyuan, 2023. "Investigating the energy trade networks in the Belt and Road regions: Structures and evolution," Energy, Elsevier, vol. 283(C).
    4. Cavallaro, Eleonora & Villani, Ilaria, 2021. "Real income convergence and the patterns of financial integration in the EU," The North American Journal of Economics and Finance, Elsevier, vol. 56(C).
    5. Villani, Davide, 2021. "Revisiting the external financial dependence index in light of the rise of corporate net lending: What do we really measure?," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 361-376.
    6. Xiaoli Li & Hongqi Wang, 2021. "An Exploratory Study of How Latecomers Transform Strategic Path in Catch-Up Cycle," Sustainability, MDPI, vol. 13(9), pages 1-25, April.
    7. Knez, Klemen, 2022. "Domestic Supplier Spillovers of Global Value Chains in Central and Eastern European Countries," MPRA Paper 112391, University Library of Munich, Germany.
    8. Nomaler, Önder & Spinola, Danilo & Verspagen, Bart, 2021. "Demand-led industrialisation policy in a dual-sector small balance of payments constrained economy," MERIT Working Papers 2021-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Rajeev K. Goel & Ummad Mazhar & James W. Saunoris, 2021. "Identifying the corrupt cog in the wheel: Dimensions of supply chain logistics and cross‐country corruption," Australian Economic Papers, Wiley Blackwell, vol. 60(4), pages 693-709, December.
    10. Michael Landesmann & Roman Stöllinger, 2020. "The European Union’s Industrial Policy: What are the Main Challenges?," wiiw Policy Notes 36, The Vienna Institute for International Economic Studies, wiiw.
    11. Lena Gerdes & Bernhard Rengs & Manuel Scholz-Wäckerle, 2022. "Labor and environment in global value chains: an evolutionary policy study with a three-sector and two-region agent-based macroeconomic model," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 123-173, January.
    12. Gräbner, Claudius & Hafele, Jakob, 2020. "The emergence of core-periphery structures in the European Union: A complexity perspective," ZOE Discussion Papers 6, ZOE. institute for future-fit economies, Bonn.
    13. Liping Fu & Fan Wu & Shan Zhang, 2022. "Evolutionary Path and Innovative Development of Pharmaceutical Industrial Cluster—A Case Study of Shijiazhuang, China," IJERPH, MDPI, vol. 19(5), pages 1-18, March.
    14. Davide Villani & Marta Fana, 2021. "Productive integration, economic recession and employment in Europe: an assessment based on vertically integrated sectors," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 137-157, June.
    15. Vasily Astrov & Mario Holzner & Sebastian Leitner & Isilda Mara & Leon Podkaminer & Armon Rezai, 2019. "Wage Developments in the Central and Eastern European EU Member States," wiiw Research Reports 443, The Vienna Institute for International Economic Studies, wiiw.
    16. Rikap, Cecilia & Flacher, David, 2020. "Who collects intellectual rents from knowledge and innovation hubs? questioning the sustainability of the singapore model," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 59-73.
    17. Wenjing Zu & Guoda Gu & Sihan Lei, 2022. "Does Digital Transformation in Manufacturing Affect Trade Imbalances? Evidence from US–China Trade," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    18. Aminullah, Erman, 2024. "Forecasting of technology innovation and economic growth in Indonesia," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    19. Tetiana Dedilova & Iaroslava Levchenko & Oleksandr Nosyriev & Svitlana Osypova, 2021. "Justification of regional development of industrial enterprises in the plane of their financial support: experience of Ukraine," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 2(4(58)), pages 33-37.
    20. Önder Nomaler & Danilo Spinola & Bart Verspagen, 2024. "Demand‐led industrialisation policy in a dual‐sector small open economy," Metroeconomica, Wiley Blackwell, vol. 75(3), pages 339-376, July.
    21. Dario Guarascio & Jelena Reljic & Giacomo Cucignatto & Giuseppe Celi & Annamaria Simonazzi, 2023. "Between a rock and a hard place. Long-term drivers of EU structural vulnerability," Working Papers in Public Economics 237, University of Rome La Sapienza, Department of Economics and Law.
    22. Felice, Giulia & Tajoli, Lucia, 2021. "Trade balances and global value chains: Is there a link?," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 228-246.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Landesmann & Roman Stöllinger, 2018. "Structural Change, Trade and Global Production Networks," wiiw Policy Notes 21, The Vienna Institute for International Economic Studies, wiiw.
    2. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.
    3. João Amador & Sónia Cabral, 2014. "Global Value Chains: Surveying Drivers, Measures and Impacts," Working Papers w201403, Banco de Portugal, Economics and Research Department.
    4. Emanuele Brancati & Raffaele Brancati & Andrea Maresca, 2017. "Global value chains, innovation and performance: firm-level evidence from the Great Recession," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1039-1073.
    5. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    6. Stöllinger, Roman, 2021. "Testing the Smile Curve: Functional Specialisation and Value Creation in GVCs," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 93-116.
    7. repec:wsr:ecbook:2015:i:vi-003 is not listed on IDEAS
    8. Luca Salvatici & Silvia Nenci, 2017. "New features, forgotten costs and counterfactual gains of the international trading system," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(4), pages 592-633.
    9. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.
    10. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    11. Shenyi Xu & Ganghui Lian & Miaoyuan Song & Aiting Xu, 2024. "Do global innovation networks influence the status of global value chains? Based on a patent cooperation network perspective," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    12. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    13. Van Biesebroeck, Johannes & Zhang, Lijun, 2014. "Interdependent product cycles for globally sourced intermediates," Journal of International Economics, Elsevier, vol. 94(1), pages 143-156.
    14. Bhushan Praveen Jangam & Badri Narayan Rath, 2020. "Cross-country convergence in global value chains: Evidence from club convergence analysis," International Economics, CEPII research center, issue 163, pages 134-146.
    15. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2022. "Does the Complexity of GVC Participation Matter for Productivity and Output Growth?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 2038-2068, August.
    16. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    17. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    18. Muendler, Marc-Andreas, 2017. "Trade, technology, and prosperity: An account of evidence from a labor-market perspective," WTO Staff Working Papers ERSD-2017-15, World Trade Organization (WTO), Economic Research and Statistics Division.
    19. Baldwin, Richard & Venables, Anthony J., 2013. "Spiders and snakes: Offshoring and agglomeration in the global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 245-254.
    20. Antrà s, Pol, 2019. "Conceptual Aspects of Global Value Chains," CEPR Discussion Papers 14191, C.E.P.R. Discussion Papers.
    21. Bo Meng & Ming Ye & Shang‐Jin Wei, 2020. "Measuring Smile Curves in Global Value Chains," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 988-1016, October.

    More about this item

    Keywords

    Appropriate industrial policy; Structural change; Structural upgrading; Emerging Europe; Emerging economies; International production networks; Global value chains; Catching-up;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • F15 - International Economics - - Trade - - - Economic Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:48:y:2019:i:c:p:7-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.