![FIGURE 1: DIAGRAMATIC REPRESENTATION OF GVCs
SOURCE: [1]](https://image.slidesharecdn.com/mogfinalassignmenttradingfordevelopmentinageofglobalvalue-200921122650/85/Mog-final-assignment-trading-for-development-in-age-of-global-value-3-320.jpg)
![2. ECONOMIC IMPORTANCE OF GVCs
• GVCs encourage what is called hyperspecialization because the division in
the addition is carried out in different national boundaries.
• Bangladesh happened to be a good example by exporting apparel and
footwear.The apparel is processed from the imported textiles.The
exporting of apparel has grown considerably from the less than 1 per cent in
1988 to 18 per cent in recent year [1].
• The country and other participating partners in the line of business has
enjoyed hyperspecialization.](https://image.slidesharecdn.com/mogfinalassignmenttradingfordevelopmentinageofglobalvalue-200921122650/85/Mog-final-assignment-trading-for-development-in-age-of-global-value-4-320.jpg)
![4. Conclusion
Conclusion
• Engagement of the Investment Promotion
Centre as obtainable in each country could
facilitate more GVCs and partnership,
especially, in the developing countries.
• Consideration should be given to how
Investment Promotion Centre (such as
Nigerian Investment and Promotion
Commission in Nigeria) could enhance GVCs.
Reference
• [1] World Bank (2020). Trading for
Development in the Age of Global Value
Chains. Author:Washington D. C.](https://image.slidesharecdn.com/mogfinalassignmenttradingfordevelopmentinageofglobalvalue-200921122650/85/Mog-final-assignment-trading-for-development-in-age-of-global-value-10-320.jpg)
Mog final assignment trading for development in age of global value
- 1. TRADING FOR DEVELOPMENT IN AGE OF GLOBALVALUE CHAINS FINAL ASSIGNMENT BY MATTHEW O. GIDIGBI SEPTEMBER, 2020
- 2. 1. GLOBALVALUE CHAINS (GVCs): What is it? • GVCs segment production into stages, while each stages of the production process are carried out in different countries involved in the GVCs as related to a particular product. Other way round, GVCs is the breaking up of complex products into simpler parts and tasks for countries to specialise on. • GVCs could be forward and/or backward. • The arrow in the figure shows only forward GVCs, and it becomes backward when a country’s GVCs exports include transaction in which a country’s exports embody value added that it previously imported from abroad.
- 3. FIGURE 1: DIAGRAMATIC REPRESENTATION OF GVCs SOURCE: [1]
- 4. 2. ECONOMIC IMPORTANCE OF GVCs • GVCs encourage what is called hyperspecialization because the division in the addition is carried out in different national boundaries. • Bangladesh happened to be a good example by exporting apparel and footwear.The apparel is processed from the imported textiles.The exporting of apparel has grown considerably from the less than 1 per cent in 1988 to 18 per cent in recent year [1]. • The country and other participating partners in the line of business has enjoyed hyperspecialization.
- 5. 2. ECONOMIC IMPORTANCE OF GVCs • Some countries specialized in processing harvested cotton to textiles, while some others specialized in processing the imported textiles to apparel for both domestic and international consumption. • The processes have boosted opportunities in this line of business and expanded income generation. Also, lack of fund is dwindling as business opportunities are opening, thereby, poverty tendency declines. • Hyperspecialization in a participating country has further promoted technology transfer. High level of specialization motivate need for improved means of technology and this has resulted to technology transfer. • Furthermore, possibility of ideal price is feasible as technology transfer mandates mass production and thereafter price reduction. • GVCs promote output expansion, which is sine qua non to job creation and improved household income as well, vividly witnessed in Bangladesh.
- 6. 3. STRENGTHEN GVCs POSSIBILITIES INTHE DEVELOPING COUNTRY • Drivers of the GVCs are Endowments, Market Size, Geography and Institution. • Policy priorities are fundamentals to any GVCs drivers.
- 7. 3. STRENGTHEN GVCs POSSIBILITIES IN THE DEVELOPING COUNTRY • Higher level of GVCs could be possible with the help of national investment promotion centre by the way of searching for possible GVC opening/partnership and publicise the same locally for the local firms to take up. • National Investment Promotion Centre could basically serve as the intermediary in perfecting GVCs partnership between two firms in different countries (See Figure 2). • This function could be an additional responsibility to the institution.
- 8. 3. STRENGTHEN GVCs POSSIBILITIES INTHE DEVELOPING COUNTRY Figure 2: Strengthen GVCs Possibilities Investment Promotion Centre Local FirmsForeign Firms
- 9. The collaboration with the Investment Promotion Centre would facilitate this for the participating firms Local Firms • Better understanding of the contract. Investment Promotion Centre • Interpreter of what is required, technical requisition Foreign Firms • Enhanced business confidence
- 10. 4. Conclusion Conclusion • Engagement of the Investment Promotion Centre as obtainable in each country could facilitate more GVCs and partnership, especially, in the developing countries. • Consideration should be given to how Investment Promotion Centre (such as Nigerian Investment and Promotion Commission in Nigeria) could enhance GVCs. Reference • [1] World Bank (2020). Trading for Development in the Age of Global Value Chains. Author:Washington D. C.