Against the backdrop of the rise of global value chains (GVCs), particularly in Asia, this paper documents key developments of GVCs and investigates what factors cause economies to reap greater benefits from GVC participation. Key findings include: first, moving toward a more upstream position in production and raising economic complexity are associated with the country increasing its share of GVC value added. Second, fostering GVC participation and expanding the share of the domestic value added in a value chain require efforts to reduce trade barriers, enhance infrastructure, foster human capital formation, support research and development, and improve institutions.
This 2016 OECD Economic Survey of Turkey examines recent economic developments, policies and prospects. The special chapters cover: Strengthening manufacturing and Participating in global value chains.
TPQ’s Summer issue, NATO in 2020 and Beyond: New Strategies and Frontiers, offers insights on the Alliance’s current challenges and future security trends, while offering a look into Euro-Atlantic relations in the coming decade. It is clear that as the international security landscape is rapidly changing, member states’ capabilities, resilience, and most importantly, their commitment will be put to the test. In December 2019, NATO Leaders gathered in London to celebrate the Alliance’s 70-year history and assess the current state of transatlantic bonds. A growing list of both internal and external issues that will continue to be important for NATO were discussed, including Russia’s deployment of intermediate-range missiles, NATO’s expansion policy, China’s growing influence on the international stage, and strategic divisions among member states. The COVID-19 pandemic poses a particularly pressing challenge to NATO and its crisis response efforts. Headlining the Summer 2020 issue is NATO Assistant Secretary General Baiba Braze, whose article focuses on the Alliance’s resilience in response to the COVID-19 pandemic. Underlining the importance of multilateralism in the face of global crises, Braze explains NATO’s role in supporting wider efforts to fight the virus, while also critically preventing the health crisis from spawning security crises. Braze concludes by outlining NATO’s 2030 vision, which prioritizes making the Alliance stronger politically, as well as extending its global reach. Discussing the future of the transatlantic relationship in a declining liberal world order, Senior Advisor to the President of Turkey Gülnur Aybet argues that the policies of certain allies have forced Turkey to become a “self-help” state. Aybet illustrates a revised and inclusive liberal world order in which Turkey is understood in its own context, and thus, approached accordingly. Other topics taken up in this issue are the consequences of the INF Treaty’s demise and NATO’s digital public diplomacy efforts. Several of our authors discuss NATO’s expansion policy, including North Macedonia’s recent accession as the Alliance’s 30th member and the prospective memberships of Ukraine and Georgia.
How can Turkey increase its medium- and long-term growth potential? Despite episodes of fast growth, this has become a vital question for the Turkish economy, in order to avoid being stuck in a middle-income trap. There has been an increase in the number of studies presenting growth in Turkey and quantifying the sources of economic growth, however, due to the difference in the main underlying assumptions and the time period covered in these studies, the results differ. The second strand of literature on growth in Turkey identifies the relative underperformance of the Turkish economy by developing models with microeconomic foundations. Given the fact that there are a large number of studies investigating the macro dynamics of growth in Turkey, the book’s unique focus on the "neglected" issues in growth discussions closes the gap in the existing literature. It addresses the micro, macro, regional, and gender aspects, the environment–energy–growth nexus, as well as the microeconomic dynamics of growth. It also analyses the other significant determinants of long run growth in Turkey such as import dependency and saving-investment decision. The authors provide a macro overview of all of the precluded subjects in order to evaluate them in relation to one other, as well as to derive policy conclusions from them. This book primarily targets academics as well as graduate and undergraduate social sciences and humanities students both in Turkey and other countries. It is also a must read for researchers and policy makers not only in Turkey but also in other developing economies and is of interest to specialists of non-governmental and non-profit organizations.
Turkey is the fastest growing OECD economy with rapidly increasing greenhouse gas emissions. Since 2008, its economic growth has been relatively decoupled from air emissions, energy use, waste generation and water consumption. However, the high resource intensity of Turkey’s economy and its ...
Robust SME sectors are critical to the prosperity of the six Western Balkan economies and Turkey, accounting for over 70% of those employed in the business sector and generating 65% of value added in these seven economies. Yet their potential remains untapped, as SMEs across the region grapple ...
Who captures the value created in global supply chains? How should gaps in value capture among participants be amended and by whom? Focusing on the global apparel supply chain and employing value creation as a yardstick for evaluation of value capture, the book documents distortions in value distribution among global brands, manufacturers, labor, and consumers. It develops a novel approach for correcting for these distortions by creating a market for social justice that is based on interdependence relationships among the participants.
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
Over the last two decades, world trade and production have become increasingly organized around global value chains (GVC). Recent theoretical work has shown that countries can benefit from participation in GVCs through multiple channels. However, little is known empirically about the economic importance of supply chains. We use the Eora MRIO database to compute different measures of GVC participation for 189 countries and illustrate global patterns of supply chains as well as their evolution over time in order to contribute to this topic. We find that GVC-related trade, rather than conventional trade, has a positive impact on income per capita and productivity, however there is large heterogeneity and the gains appear more signifcant for upper-middle and high-income countries. We document that “moving up” to more high-tech sectors while participating in major supply chains does take place but is not universal, suggesting other factors matter. We confirm the findings of the standard gravity literature for GVC trade; highlighting the key role of institutional features such as contract enforcement and the quality of infrastructure as determinants of GVC participation.
Digital Technologies in Modeling and Management: Insights in Education and Industry explores the use of digital technologies in the modeling and control of complex systems in various fields, such as social networks, education, technical systems, and their protection and security. The book consists of two parts, with the first part focusing on modeling complex systems using digital technologies, while the second part deals with the digitalization of economic processes and their management. The book results from research conducted by leading universities' teaching staff and contains the results of many years of scientific experiments and theoretical conclusions. The book is for a wide range of readers, including the teaching staff of higher educational institutions, graduate students, students in computer science and modeling, and management technologies, including economics. It is also a valuable resource for IT professionals and business analysts interested in using digital technologies to model and control complex systems.
