What are the implications for global value chains when the market shifts from the north to the south? Online publication date: Mon, 15-Aug-2011
by Raphael Kaplinsky, Masuma Farooki
International Journal of Technological Learning, Innovation and Development (IJTLID), Vol. 4, No. 1/2/3, 2011
Abstract: This paper charts the evolution of the 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. Based on an analysis of the interaction between the nature of market demand and production processes, this paper argues that the transition in markets from high-income northern to low-income southern consumers will have implications for producers in commodity value chains. In particular it will lead to the diminished importance of standards (often a conduit for capability-growth) and to a reduction in the degree of value added to commodities in exporting economies.
Online publication date: Mon, 15-Aug-2011
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technological Learning, Innovation and Development (IJTLID):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com