Focus on the fragmentation of production along global value chains.

 

The fragmentation of production along global value chains has been recognized as a significant feature of the twenty-first century global economy with its epicentre in Asia. Research on GVCs is, however, characterized by a lack of consensus over definition and measurement. The increasing availability of integrated input-output data and the development of appropriate indicators to measure GVC participation have allowed researchers to delve more deeply into empirical regularities surrounding integration and upgrading within GVCs. Combining findings from firm-level surveys and case studies, the geography of GVCs in Asia can be mapped and the determinants of successful participation and upgrading in global and regional chains identified. This volume brings together the findings from a series of studies carried out for a joint project of United Nations Industrial Development Organization (UNIDO) and the University of International Business and Economics (UIBE). 

Part One takes a macro perspective, in which linked input-output tables are used to map participation of the Asia region in value chains over time. Further analysis at the macro level identifies factors associated with successful integration into GVCs, the impact of GVC participation on economic performance, whether participation in GVCs has led to structural change, and the impact of GVCs on the environment through changes in emissions. 

In Part Two, firm-level surveys and case studies of individual firms and GVCs from China, India and Viet Nam are analysed to further understand the drivers and consequences of successful integration and upgrading. To deepen our understanding at the firm level, the project focussed on the electronics and apparel industries, which have been at the foundation of Asian GVCs. The key issues project participants addressed were the determinants of GVC participation and the drivers of successful upgrading within GVCs.

Part Three presents the main conclusions on these issues and policy implications drawn therefrom. The background papers are listed at the end of the report. 

Although the report also draws on the wider literature on GVCs, we generally do not repeat all references found in the background papers