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Background: A first qualitative review showed that few studies have examined the domestic factors that affect developing countries' increased participation in the value chain, even though these factors are important for advancing social and economic progress, for example by promoting a high level of industrialization. This study attempts to fill this gap by assessing the impact of relevant factors from a micro perspective at the country level. Methods: The study employs a micro-balanced panel data set comprising 26 developing countries and 130 observations in a fixed-effects robust model from 2012–2017. Nations were included based on the World Economic Situation and Prospects (WESP) issued by the United Nations, as long as they met certain data availability and development stage standards. The research employs four variables on which value chain breadth in developing economies depends. The regressors (quality of education, favoritism, supplier quality, and public procurement) were derived from The Global Competitiveness Report issued by the World Economic Forum and the World Bank. Additionally, market size was considered to account for any differences within these countries regarding trade exchanges. Results: The findings show that 32% of the breadth of value chains in the chosen sample countries can be explained by the regressors used in the fixed-effects model, suggesting the potential to expand value chain-related activities and make them more intricate and sophisticated. Regardless of market size, the study's results revealed the significance of the government's role in innovation procurement as a major purchaser in developing countries. The quality of education was also relevant when promoting a competitive economy. The quality of suppliers was essential for businesses in these countries, suggesting the need to delineate supply chain management strategies. The research shows how favoritism among public officials limits firms' opportunities to expand value chain activities in the selected territories. Conclusion: The enlarged presence of firms in value chain activities represents an essential opportunity to increase social and economic progress. Understanding the domestic components influencing value chain participation is relevant for policy development and the further recognition of resource availability. The study's findings suggest that additional empirical studies addressing different elements contributing to value chain enrichment would be valuable. They also support calls for a strong public-private collaboration in industrial policy, specifically addressing the negative effects of government favoritism.
Wydawca
Czasopismo
Rocznik
Tom
Strony
389--400
Opis fizyczny
Bibliogr. 40 poz., tab., wykr.
Twórcy
autor
- Escuela de Negocios y Empresarismo, Universidad Ana G. Méndez - Recinto de Gurabo, Puerto Rico
Bibliografia
- 1. Ali, K. 2020. The nexus between supplier quality management and organization's competitive advantage: An empirical evidence. LogForum, 16(1), 171-181. https://doi.org/10.17270/J.LOG.2020.389
- 2. Amendolagine, V., Presbitero, A. F., Rabellotti, R., & Sanfilippo, M. 2019. Local sourcing in developing countries: The role of foreign direct investments and global value chains. World Development, 113, 73-88. https://doi.org/10.1016/j.worlddev.2018.08.010
- 3. Bramoulle, Y. & Goyal, S. 2016. Favoritism. Journal of Development Economics, 122, 16-27. https://doi.org/10.1016/j.jdeveco.2016.04.006
- 4. Bruno, R., Cipollina, M. & Dal Bianco, S. 2023. The Ripple Effect of sanctions: exploring the impact on global value chains using a gravity model. Italian Economic Journal, 9(3), 1063-1087. http://dx.doi.org/10.1007/s40797-023-00242-6
- 5. Cattaneo, O., Gereffi, G., Miroudot, S., & Taglioni, D. 2013. Joining, upgrading and being competitive in global value chains: a strategic framework. World Bank Policy Research Working Paper, (6406).
- 6. Daga, S., & Mendi, P. 2022. Informal input suppliers, quality choice and welfare. Journal of Economics, 136(2), 149-176. https://doi.org/10.1007/s00712-021-00773-5
- 7. De Silva, L., Jayamaha, N., & Garnevska, E. 2023. Sustainable Farmer Development for Agri-Food Supply Chains in Developing Countries. Sustainability, 15(20), 15099. https://doi.org/10.3390/su152015099
- 8. Dhanalakshmi, R. 2022. A Review on Key Drivers of Global Value Chain (GVC) Participation of Emerging Market Economics. Review of Economics and Econometrics Studies, 1(2), 8798.
- 9. Fernandes, A. M., Kee, H. L., & Winkler, D. 2022. Determinants of global value chain participation: Cross-country evidence. The World Bank Economic Review, 36(2), 329-360.
- 10. Forker, L. 1997. Factors affecting supplier quality performance. Journal of Operations Management, 15(4), 243-269. https://doi.org/10.1016/S0272-6963(97)00001-6
- 11. Fourie, D., & Malan, C. 2020. Public procurement in the South African economy: Addressing the systemic issues. Sustainability, 12(20), 8692. https://doi.org/10.3390/su12208692
- 12. Gereffi, G., & Kaplinsky, R. 2001. The value of value chains: spreading the gains from globalisation. Institute of Development Studies.
- 13. Hanushek, E. & Woessmann, L. 2020. Education, knowledge capital, and economic growth. In: The Economics of Education (Second Edition) A Comprehensive Overview, Chapter 14: 171-182. https://doi.org/10.1016/B978-0-12-815391-8.00014-8
- 14. Haskel, J. & Westlake, S. 2018. Capitalism without Capital: The Rise of the Intangible Economy. Princeton University Press. ISBN10: 0691183295
- 15. Hernández, V., & Pedersen, T. 2017. Global value chain configuration: A review and research agenda. Business Research Quarterly, 20(2), 137-150. https://doi.org/10.1016/j.brq.2016.11.001
- 16. Hong, J., Liao, Y., Zhang, Y., & Yu, Z. 2019. The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers. International Journal of Production Economics, 212, 227-235. https://doi.org/10.1016/j.ijpe.2019.01.036
- 17. International Labour Organization 2021. Value Chain Development for Decent Work. https://www.ilo.org/publications/value-chain-development-decent-work-1
- 18. Kano, L., Tsang, E. W., & Yeung, H. W. C. 2020. Global value chains: A review of the multi-disciplinary literature. Journal of International Business Studies, 51(4), 577-622. https://doi.org/10.1057/s41267-020-00304-2
- 19. Kaplinsky, R., & Morris, M. 2000. A handbook for value chain research (Vol. 113). Brighton: University of Sussex, Institute of Development Studies.
- 20. Knez, K., Jaklič, A., & Stare, M. 2021. An extended approach to value chain analysis. Journal of Economic Structures, 10, 1-37. https://doi.org/10.1186/s40008-021-00244-6
- 21. Kowalski, P., Gonzalez, J. L., Ragoussis, A., & Ugarte, C. 2015. Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies, OECD Trade Policy Papers, No. 179, OECD Publishing. https://doi.org/10.1787/5js33lfw0xxn-en
- 22. Leão, R., Ijatuyi, E. J., & Goulao, L. F. 2023. How Public Procurement Mechanisms Can Be Used as a Tool for Developing Pro-Poor Food Value Chains: From Entry Points to Interventions. Sustainability, 15(12), 9152. https://doi.org/10.3390/su15129152
- 23. Lee, M., Gaspar, R., & Du, H. 2021. Enabling an Innovation Ecosystem and Participation at the Higher End of Global Value Chains. Asian Development Review, 38(02), 123-157. https://dx.doi.org/10.1142/S0116110521500013
- 24. Lee, K., Szapiro, M. & Mao, Z. 2018. From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge Creation. The European Journal of Development Research, 30, 424–441. https://doi.org/10.1057/s41287-017-0111-6
- 25. Lucas, R. 1988. On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
- 26. Nyiri, L., Osimo, D., Özcivelek, R., Centeno, C., & Cabrera, M. 2007. Public Procurement for the Promotion of R&D and Innovation in ICT. Institute for Prospective Technological Studies. Luxembourg: Office for Official Publications of the European Communities.
- 27. OECD Publishing 2013. Interconnected Economies: Benefiting from Global Value Chains. OECD Publishing, Paris. https://doi.org/10.1787/9789264189560-en
- 28. Otusanya, J. 2011. Corruption as an obstacle to development in developing countries: a review of literature. Journal of Money Laundering Control, 14(4), 387-422. https://doi.org/10.1108/13685201111173857
- 29. Porter, M. 1985. Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press.
- 30. Raei, M. F., Ignatenko, A., & Mircheva, M. 2019. Global value chains: what are the benefits and why do countries participate? International Monetary Fund.
- 31. Rodrigue J-P. & Notteboom, T. 2017. Transportation, economy and society. In: Rodrigue, J.-P., Comtois, C., Slack, B. (eds.) The Geography of Transport Systems, Routledge, New York, 94–126.
- 32. Romer, P. 1994. The Origins of Endogenous Growth. The Journal of Economic Perspectives (1986-1998), 8(1), 3-22.
- 33. Sénquiz-Díaz, C. 2021. The effect of transport and logistics on trade facilitation and trade: A PLS-SEM approach. ECONOMICS-INNOVATIVE AND ECONOMICS RESEARCH JOURNAL, 9(2), 11-34. https://doi.org/10.2478/eoik-2021-0021
- 34. Sahlberg, P. 2006. Education reform for raising economic competitiveness. Journal of Educational Change, 7, 259-287. https://doi.org/10.1007/s10833-005-4884-6
- 35. Spyromitros, E., & Panagiotidis, M. 2022. The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators. Cogent Economics & Finance, 10(1), 2129368. https://doi.org/10.1080/23322039.2022.2129368
- 36. Sturgeon, T. J. 2001. How do we define value chains and production networks?. IDS Bulletin, 32(3), 9-18. https://doi.org/10.1111/j.1759-5436.2001.mp32003002.x
- 37. World Economic Forum 2018. The Global Competitiveness Report. Geneva. ISBN-13: 978-1-944835-11-8. http://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017%E2%80%932018.pdf
- 38. Wilkins, A. 2018. To lag or not to lag? Re-evaluating the use of lagged dependent variables in regression analysis. Political Science Research and Methods, 6(2), 393–411. https://doi:10.1017/psrm.2017.4
- 39. World Bank 2023. Corruption is a Global Problem for Development. To Fight It, We All Have a Role to Play. https://www.worldbank.org/en/news/opinion/2023/06/13/corruption-is-a-global-problem-for-development-to-fight-it-we-all-have-a-role-to-play
- 40. World Bank 2020. Procurement for Development. https://www.worldbank.org/en/topic/procurement-for-development
Uwagi
Opracowanie rekordu ze środków MNiSW, umowa nr POPUL/SP/0154/2024/02 w ramach programu "Społeczna odpowiedzialność nauki II" - moduł: Popularyzacja nauki (2025).
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.baztech-367a5e91-8ac5-4d36-8962-e51f42dab452
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