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(Location: IWMI HQ Call no: e-copy only Record No: H050273)
(0.45 MB)
This paper relates participation in global value chains (GVCs) to development patterns at the country level. It accounts for the diversity and interdependence of development through a cross-country analysis for 51 countries between 1995 and 2008. We identify three patterns of socio-economic development related to various degrees and modes of GVC participation: a social upgrading mirage, the reproduction of the core and unequal growth. This result is achieved thanks to the introduction of two new elements to the literature: first, the introduction of new macroeconomic indicators of GVC participation and economic gains that are explicitly based in a theoretically consistent definition of GVCs; second, the identification of a variety of interdependent development patterns related to GVC participation through the use of principal component analysis and cluster analysis.
(Location: IWMI HQ Call no: e-copy only Record No: H052058)
(1.41 MB) (1.41 MB)
This paper relates participation in global value chains (GVCs) to development patterns and ecologically unequal exchange (EUE). We conduct a principal components analysis and a clustering analysis along six dimensions (GVC participation, GVC value capture, investment, socioeconomic development, domestic environmental impact and international environmental balance) for 133 countries between 1995 and 2015. We find three social, ecological, productive development and GVC insertion patterns: “curse of GVC marginalization”, “ecologically perverse upgrading” and “reproduction of the core”. While our results confirm the asymmetry in ecological degradation between high-income and low-income economies shown by EUE, it refines and nuances these findings. We argue that environmental asymmetries are driven in large part by differences in how countries articulate within GVCs. Countries with a higher capacity to capture value from GVC participation (“reproduction of the core”) are able to displace environmental impacts to countries facing a trade-off between upgrading in GVCs and ecological degradation (“ecologically perverse upgrading”). Marginalization from GVCs, mitigates the impact of ecologically unequal exchange but constitutes a barrier to socio-economic benefits. Moreover, the lack of diffusion of more ecologically-efficient processes through GVCs has a negative impact on domestic ecological degradation for countries of the “curse of GVC marginalization” group.
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