An extended approach to value chain analysis
Abstract In the article, we propose a comprehensive methodology of value chain analysis in the international input–output framework that introduces a new measure of value chain participation and an extended typology of value chains, with the novel inclusion of domestic value chain to address the ext...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2021-08-01
|
| Series: | Journal of Economic Structures |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40008-021-00244-6 |
| _version_ | 1818832887100735488 |
|---|---|
| author | Klemen Knez Andreja Jaklič Metka Stare |
| author_facet | Klemen Knez Andreja Jaklič Metka Stare |
| author_sort | Klemen Knez |
| collection | DOAJ |
| description | Abstract In the article, we propose a comprehensive methodology of value chain analysis in the international input–output framework that introduces a new measure of value chain participation and an extended typology of value chains, with the novel inclusion of domestic value chain to address the extent of fragmentation of purely domestic production. This allows for the simultaneous analysis of both global and domestic production fragmentation, the complex patterns of their evolution and their impact on economic development. The main contribution of the proposed methodology is conceptual: it permits the measurement of all value chain paths that pass through each country-sector from production to final consumption, whether the path includes downstream linkages, upstream linkages or their combination. Empirical application of this methodology shows the importance of including domestic fragmentation in value chain analysis: The fragmentation of both global and domestic levels of production has a significant positive correlation with economic growth. This implies that the effects of global production fragmentation must be analysed together with the changing structure of the fragmentation of domestic production to obtain the whole picture, one that might provide important information for policymaking and industrial policy. |
| first_indexed | 2024-12-19T02:10:10Z |
| format | Article |
| id | doaj.art-017945c61d9442eabbcd123d4b6a6be9 |
| institution | Directory Open Access Journal |
| issn | 2193-2409 |
| language | English |
| last_indexed | 2024-12-19T02:10:10Z |
| publishDate | 2021-08-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj.art-017945c61d9442eabbcd123d4b6a6be92022-12-21T20:40:49ZengSpringerOpenJournal of Economic Structures2193-24092021-08-0110113710.1186/s40008-021-00244-6An extended approach to value chain analysisKlemen Knez0Andreja Jaklič1Metka Stare2Centre of International Relations, University of LjubljanaCentre of International Relations, University of LjubljanaCentre of International Relations, University of LjubljanaAbstract In the article, we propose a comprehensive methodology of value chain analysis in the international input–output framework that introduces a new measure of value chain participation and an extended typology of value chains, with the novel inclusion of domestic value chain to address the extent of fragmentation of purely domestic production. This allows for the simultaneous analysis of both global and domestic production fragmentation, the complex patterns of their evolution and their impact on economic development. The main contribution of the proposed methodology is conceptual: it permits the measurement of all value chain paths that pass through each country-sector from production to final consumption, whether the path includes downstream linkages, upstream linkages or their combination. Empirical application of this methodology shows the importance of including domestic fragmentation in value chain analysis: The fragmentation of both global and domestic levels of production has a significant positive correlation with economic growth. This implies that the effects of global production fragmentation must be analysed together with the changing structure of the fragmentation of domestic production to obtain the whole picture, one that might provide important information for policymaking and industrial policy.https://doi.org/10.1186/s40008-021-00244-6Value chain typologyValue chainsGlobal value chainDomestic value chainParticipation rateInput–output framework |
| spellingShingle | Klemen Knez Andreja Jaklič Metka Stare An extended approach to value chain analysis Journal of Economic Structures Value chain typology Value chains Global value chain Domestic value chain Participation rate Input–output framework |
| title | An extended approach to value chain analysis |
| title_full | An extended approach to value chain analysis |
| title_fullStr | An extended approach to value chain analysis |
| title_full_unstemmed | An extended approach to value chain analysis |
| title_short | An extended approach to value chain analysis |
| title_sort | extended approach to value chain analysis |
| topic | Value chain typology Value chains Global value chain Domestic value chain Participation rate Input–output framework |
| url | https://doi.org/10.1186/s40008-021-00244-6 |
| work_keys_str_mv | AT klemenknez anextendedapproachtovaluechainanalysis AT andrejajaklic anextendedapproachtovaluechainanalysis AT metkastare anextendedapproachtovaluechainanalysis AT klemenknez extendedapproachtovaluechainanalysis AT andrejajaklic extendedapproachtovaluechainanalysis AT metkastare extendedapproachtovaluechainanalysis |