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Regular version of the site
2021/2022

Global Value Chains and Industrial Policy

Type: Mago-Lego
When: 4 module
Open to: students of all HSE University campuses
Instructors: Anna Fedyunina
Language: English
ECTS credits: 3

Course Syllabus

Abstract

During the past few decades, the global economy has changed dramatically by reorganization of production processes into global value chains (GVCs). The emergence of GVCs has made industrialization easier for some countries and more challenging for others. While some nations succeeded in industrial upgrading, the others remain trapped in industrialization. By taking this course, a student will have an opportunity to learn and discuss: (1) how important are GVCs? (2) what are the upgrading strategies in GVCs from macro and micro perspectives? and (3) what are the lessons and policy implications from upgrading in GVCs in developing countries? The course is unique because it combines micro- and macro level approaches of GVCs analysis and relies on recent empirical articles and policy papers. Study objectives: • introduce students a systematic view on the role of GVCs in the process of industrialization and catching up; • provide students with the determinants, strategies and the effects of integration into GVCs at the micro, industry and macro level; • develop understanding of industrial policy instruments aimed at integration and upgrading in GVCs; • prepare new generation of knowledgeable sprecialists who are aware of processes in the global economy, know the drivers and consequences of integration into global production at the micro, industry and macro level. Results of mastering the discipline: • knowledge of cases and best practives of integration into GVCs; • ability to analyze, interprete and provide judgement on position and strategies of participation in GVCs at micro, industry and macro level; • awareness, complex understanding and ability to analyze industrial policy instruments from the perspective of GVCs participation and upgrading.
Learning Objectives

Learning Objectives

  • • introduce students a systematic view on the role of GVCs in the process of industrialization and catching up; • provide students with the determinants, strategies and the effects of integration into GVCs at the micro, industry and macro level; • develop understanding of industrial policy instruments aimed at integration and upgrading in GVCs; • prepare new generation of knowledgeable sprecialists who are aware of processes in the global economy, know the drivers and consequences of integration into global production at the micro, industry and macro level.
Expected Learning Outcomes

Expected Learning Outcomes

  • Make interpretation and draw conclusion of the extent and the nature of participation of countries, particular industries and particular firms in global production networks based on available data and empirical evidence
  • Able to describe the features of GVCs participation and explain the different effects of participation
  • Able to identify and critically analyse industrial policy measures aimed at entering and re-positioning of a country/industry/firm in GVCs
Course Contents

Course Contents

  • Introduction
    We start with course overview and requirements. We discuss the trends in global production and the phenomenon of Global value chains (GVCs), main data sources and how to measure GVCs.
  • Determinants of Participation in GVCs
    We discuss the following determinants of participation in GVCs: (1) specialization, economic and trade structure; (2) Industrial capabilities and skills; (3) Institutions; (4) Infrastructure; (5) Uncertainty and risk
  • GVC governance
    We explore why does GVC governance matter and consider different types of governance in GVCs. Then we study trends of GVC governance and determinants of GVC governance modes. Finally, we discuss different cases of GVC governance and its evolution.
  • Upgrading in GVCs from economic and social perspective
    We start with the discussion of trajectories in GVC participation and explore different measures of GVC upgrading, particularly, output, productivity and structural changes. In addition, we consider the effects for labor market, employment and wages as a measure of GVC upgrading from social perspective. Finally, we discuss cases of the impact of GVCs on economic development.
  • Innovation and learning in GVCs
    We explore co-evoluton of GVCs and innovation systems. We discuss linear view and “in–out-in-again” hypothesis and theirs applicability for different country-industry cases. We analyze trajectories of firms’ innovation capabilities in GVC. We explore learning mechanisms within and outside GVCs
  • Lessons of GVC upgrading and industrial policy implications from developing countries
    We explore Industrial policy instruments supporting GVC participation and upgrading. We discuss which policies do increase the gains? We analyze and discuss cases from China, South East and South Asia, Latin America and from different sectors (low tech, medium tech, high tech).
  • Lessons of GVC upgrading and industrial policy implications from Russia
    We analyze Rusisan Industrial policy instruments supporting GVC participation and upgrading. We analyze cases of Russian industries integration into GVCs and discuss lessons and implications.
Assessment Elements

Assessment Elements

  • non-blocking Homework
    There will be one group project for the course given as a homework. Students should organize groups of 2-3 depending on the class size. The project will take a form of a case-study devoted to GVCs participation and industrial policy instruments in one of the developing countries and prepared in the form of presentation. The case study aims to evaluate student’s ability to analyze and interprete position of a country in GVCs and the role of industrial policy and its instruments in determining changes in GVCs participation and upgrading. The students will be asked to choose an industry within a developing country and examine the changes in its participation in GVCs and answer two questions “how did the changes happen” and “why did the changes happen” based on data and critical review of articles and policy papers collected.
  • non-blocking In-class assignments
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.5 * Homework + 0.5 * In-class assignments
Bibliography

Bibliography

Recommended Core Bibliography

  • Brach, J. aut. (2009). Global value chains, technology transfer and local firm upgrading in non-OECD countries Juliane Brach; Robert Kappel.
  • Gereffi,Gary. (2019). Global Value Chains and Development. Cambridge University Press.

Recommended Additional Bibliography

  • Banga, K. (2019). Digital technologies and “value” capture in global value chains: Empirical evidence from Indian manufacturing firms. https://doi.org/10.35188/UNU-WIDER/2019/677-7
  • Dennis Davis, Raphael Kaplinsky, & Mike Morris. (2018). Rents, Power and Governance in Global Value Chains. https://doi.org/10.5195/jwsr.2018.662
  • Fransen, J. V. (DE-588)1196039364, (DE-627)1677914351, aut. (2019). Learning and upgrading of craft exporters at the interface of global value chains and innovation systems Jan Fransen, Peter Knorringa.
  • Gary Gereffi, & Joonkoo Lee. (2016). Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters. Journal of Business Ethics, 1, 25. https://doi.org/10.1007/s10551-014-2373-7
  • Gary Gereffi, Penny Bamber, Stacey Frederick, Especially S, Ro Zolezzi, Francella Vargas, & Silvia Campos. (n.d.). COSTA RICA IN GLOBAL VALUE CHAINS: An Upgrading Analysis.
  • Grumiller, J., Grohs, H., Raza, W., Staritz, C., & Tröster, B. (2018). Strategies for sustainable upgrading in global value chains: The Ivorian and Ghanaian cocoa processing sectors.
  • Grumiller, J., Grohs, H., Raza, W., Staritz, C., & Tröster, B. (2018). Strategies for sustainable upgrading in global value chains: The Tunisian olive oil sector. Policy Notes.
  • Intarakumnerd, P. (2017). Upgrading in Global Value Chains: the Cases of High, Mid and Low Technology Sectors in Thailand. Asian Journal of Innovation & Policy, 6(3), 332–353. https://doi.org/10.7545/ajip.2017.6.3.332
  • Ivarsson, I., & Alvstam, C. G. (2011). Upgrading in global value-chains: a case study of technology-learning among IKEA-suppliers in China and Southeast Asia. https://doi.org/10.1093/jeg/lbq009
  • Joonkoo Lee, & Gary Gereffi. (2013). The co-evolution of concentration in mobile phone global value chains and its impact on social upgrading in developing countries. Global Development Institute Working Paper Series.
  • Kadarusman, Y., & Nadvi, K. (2013). Competitiveness and Technological Upgrading in Global Value Chains: Evidence from the Indonesian Electronics and Garment Sectors. https://doi.org/10.1080/09654313.2013.733850
  • Karina Fernandez-stark, Penny Bamber, & Gary Gereffi. (2011). 2011 The Fruit and Vegetables Global Value Chain: Economic Upgrading and Workforce Development.
  • Karina Fernandez-stark, Penny Bamber, & Gary Gereffi. (2011). 2011 The Offshore Services Global Value Chain: Economic Upgrading and Workforce Development.
  • Karina Fernandez-stark, Stacey Frederick, Gary Gereffi, Contributing Cggc, & Ghada Ahmed. (2011). 2011 The Apparel Global Value Chain: Economic Upgrading and Workforce Development.
  • Pla-Barber José, & Villar Cristina. (2019). Governance and competitiveness in global value chains: A comparative study in the automobile and textile industries. Economics and Business Review, 5(3), 72–91. https://doi.org/10.18559/ebr.2019.3.5
  • Sturgeon, T. J. (2005). The Governance of Global Value Chains: Implications for State Action.
  • The multiplicity of international corporate social responsibility standards: Implications for global value chain governance. (2019). Multinational Business Review, 27(4), 397–426. https://doi.org/10.1108/mbr-08-2019-0083
  • Thomas Bernhardt, & William Milberg. (2012). Economic and social upgrading in global value chains: Analysis of horticulture, apparel, tourism and mobile telephones. Global Development Institute Working Paper Series.
  • Thomas Clarke, & Martijn Boersma. (2017). The Governance of Global Value Chains: Unresolved Human Rights, Environmental and Ethical Dilemmas in the Apple Supply Chain. Journal of Business Ethics, 1, 111. https://doi.org/10.1007/s10551-015-2781-3
  • Юрий Симачев, Михаил Кузык, Борис Кузнецов, & Евгений Погребняк. (2014). Россия На Пути К Новой Технологической Промышленной Политике: Среди Манящих Перспектив И Фатальных Ловушек. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.9241BF3C