What Are the Implications for Global Value Chains When the Market Shifts from the North to the South?

Kaplinsky, Raphael; Farooki, Masuma

What Are the Implications for Global Value Chains When the Market Shifts from the North to the South?

Autores

Kaplinsky, Raphael

Farooki, Masuma

Editor

World Bank, Washington, DC

Descripción

Rapid growth in many low-income economies was fuelled by the insertion of producers into global value chains feeding into high-income northern markets. This paper charts the evolution of financial and economic crisis in the global economy and argues that the likely outcome will be sustained growth in the two very large Asian Driver economies of China and India and stagnation in the historically dominant northern economies. Given the nature of demand in low-income southern economies, it is likely to be reflected in sustained demand for commodities, with other southern economy producers in global value chains being forced into lower levels of value added. Standards are likely to be of considerably reduced significance in value chains feeding into China and India.

Palabras clave

ADVANCED ECONOMIES, AGRICULTURE, BARRIERS TO ENTRY, BRAND, BUYING POWER, CHILD LABOR, CHILD LABOR STANDARDS, CLIMATE, COAL, COMMODITIES, COMMODITY, COMMODITY PRICES, COMPARATIVE ADVANTAGE, COMPETITIVE ADVANTAGE, CONSUMER DEMAND, CONSUMER SPENDING, CONSUMERS, CONSUMPTION RATES, CURRENT ACCOUNT BALANCE, DEBT, DEFICIT SPENDING, DEFLATION, DEMAND FOR ENERGY, DEMAND GROWTH, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICY, DEVELOPMENT STRATEGY, DISPOSABLE INCOME, DIVISION OF LABOR, DOMESTIC MARKETS, DOMESTIC PRODUCTION, DRIVERS, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC RESEARCH, ECONOMIC STRUCTURES, ECONOMIC THEORY, ELASTICITY, EMERGING ECONOMIES, ENERGY CONSUMPTION, ENERGY INTENSITY, ENVIRONMENTAL EXTERNALITIES, ENVIRONMENTAL IMPACT, ENVIRONMENTAL STANDARDS, EXCHANGE RATES, EXPENDITURE, EXPENDITURES, EXPORTS, EXTERNAL TRADE, EXTERNALITIES, FAIR, FINANCIAL CRISIS, FINANCIAL SECTOR, FISCAL DEFICITS, FIXED ASSETS, FIXED INVESTMENTS, FOREIGN EXCHANGE, GDP, GENERAL EQUILIBRIUM, GLOBAL ECONOMIC PROSPECTS, GLOBAL ECONOMICS, GLOBAL ECONOMIES, GLOBAL ECONOMY, GLOBAL MARKETS, GLOBAL OUTPUT, GLOBALIZATION, GOVERNMENT BUDGETS, GOVERNMENT DEBT, GOVERNMENT DEFICIT, GROSS NATIONAL SAVINGS, GROWTH IN DEMAND, GROWTH MODELS, GROWTH RATES, GROWTH THEORY, HIGH WAGES, HOUSEHOLD CONSUMPTION, IMPORTS, INCOME, INCOME ELASTICITY OF DEMAND, INCOME LEVELS, INDUSTRIALIZATION, INFLATION, INFRASTRUCTURE INVESTMENTS, INNOVATION, INTERMEDIATE GOODS, INTERMEDIATE PRODUCTS, INTERNATIONAL TRADE, LABOR COSTS, LABOR FORCE, LABOR STANDARDS, LOW-INCOME COUNTRIES, LOW-INCOME COUNTRY, LOW-INCOME ECONOMIES, LOW-INCOME ECONOMY, MARKET SEGMENTS, MARKETING, MULTIPLIER EFFECTS, MULTIPLIERS, NATURAL RESOURCES, NET EXPORTS, PER CAPITA CONSUMPTION, PER CAPITA INCOME, PER CAPITA INCOMES, POLICY ANALYSIS, POLICY MAKERS, POLICY RESPONSE, POLITICAL STABILITY, POLLUTION, POPULATION AGEING, PRODUCT DIFFERENTIATION, PRODUCT MARKETS, PRODUCT QUALITY, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, RAPID ECONOMIC GROWTH, RAPID GROWTH, RENTS, RETAIL, SAFETY, SAFETY STANDARDS, SALE, SAVINGS, SCENARIOS, SECURITIES, SMALL COUNTRY, SPREAD, SUPPLIERS, SUPPLY CHAIN, SUPPLY CHAIN MANAGEMENT, SUPPLY FUNCTION, SURPLUS, SURPLUSES, TAX, THIRD WORLD, TOTAL CONSUMPTION, TRADE DEFICITS, UNCERTAINTIES, UNEMPLOYMENT, URBANIZATION, VALUE ADDED, WAGES, WEAK ENFORCEMENT, WEALTH, WORKING CONDITIONS, WORLD DEVELOPMENT INDICATORS