Global Value Chains Promoting Economic Integration in Asia-Pacific: Insights from a Systematic Literature Review
Keywords:
Global Value Chains, Economic Integration, Asia Pacific region, Trade in Intermediate Goods, TiVAAbstract
Economic integration, encompassing the removal or reduction of trade barriers and the coordination of monetary and fiscal policies, plays a pivotal role in promoting cooperation among nations. This systematic literature review examines the role of global value chains (GVCs) in promoting economic integration, with a specific focus on the Asia-Pacific region. Utilizing the PRISMA methodology, 3028 research papers on economic integration and GVCs were analysed. The study aims to investigate the significance of GVCs in driving economic integration, explore factors influencing GVC participation, and identify the economic variables affected by GVC engagement. The analysis reveals a predominant focus on developed nations rather than developing countries in the research on GVCs, with 75 studies discussing factors influencing GVC participation, such as GDP, servicification, trade agreements, digitalization, exchange rates, and non-tariff trade barriers. Additionally, 95 research papers examine the impact of GVC participation on economic indicators like labour productivity, employment, and GDP growth. However, studies specifically exploring the parameters for enhancing economic integration through GVCs in the Asia-Pacific region are limited and recent, underscoring the need for further research. This review highlights the growing importance of the Asia-Pacific region within the global value chain and emphasizes the potential for leveraging GVCs to foster economic integration.
References
Abe, M., & Proksch, M. (2017). Supporting participation of Asia-Pacific SMEs in global value chains. Journal of Korea Trade, 21(2), 86-106.
Abonyi, G., & Van Slyke, D. M. (2010). Governing on the edges: Globalization of production and the challenge to public administration in the twenty‐first century. Public Administration Review, 70, s33- s45.
Ahmed, F., & Kumar, P. (2018). Toward a national participation index for developing countries in the global value chains: A graph theoretic modelling approach. Journal of Modelling in Management, 13(2), 475-494.
Anbumozhi, V., & Kalirajan, K. (2021). Building innovative, inclusive and resilient global value chains. Journal of Social and Economic Development, 23(3), 439-446.
Anbumozhi, V., & Kalirajan, K. (2020). South Asia's economic integration with East Asia. Journal of Economic Integration, 35(1), 91-110.
Andal, E. G. T. (2017). ASEAN centrality amidst economic integration in the Asia Pacific region. Journal of the Asia Pacific Economy, 22(2), 273-290.
Banga, K. (2016). Impact of global value chains on employment in India. Journal of Economic Integration, 31(3), 631-673.
Banga, R. (2014). Linking into global value chains is not sufficient: Do you export domestic value-added contents? Journal of Economic Integration, 29(2), 267-297.
Biurrun, A., Castilho, M. D. R., Marín, R., & Quirós, C. (2021). Upgrading and inequality in global value chains: Challenges for inclusive and sustainable development. African Journal of Science, Technology, Innovation and Development, 14(4), 1117-1128.
Chen, S. H., Wen, P. C., & Liu, M. C. (2017). Late development through and beyond deep integration: The evolution of Taiwan's economic links with Southeast Asia. Journal of Southeast Asian Economies, 34(2), 367-387.
Choi, J., Fukase, E., & Zeufack, A. G. (2021). Global value chain participation, competition, and markups. Journal of Economic Integration, 36(3), 491-517.
Cieślik, E. (2019). Looking for the sectoral interdependence: Evidence from the Visegrad countries and China. Quality & Quantity, 53(4), 2041-2062.
Dinda, S. (2014). China integrates Asia with the world: An empirical study. Journal of Chinese Economic and Foreign Trade Studies, 7(2), 70-89.
Flaig, D., & Greenville, J. (2021). Trade Liberalization in APEC and global value chain participation. Journal of Economic Integration, 36(2), 308-338.
Fung, K. C. (2014). Regional and global production networks: The case of China. Journal of Chinese Economic and Foreign Trade Studies, 7(3), 126-135.
Gellert, P. K. (2007). From managed to free (r) markets: Transnational and regional governance of Asian timber. The Annals of The American Academy of Political and Social Science, 610(1), 246-259.
Henderson, J., Dicken, P., Hess, M., Coe, N., & Yeung, H. W. C. (2002). Global production networks and the analysis of economic development. Review of International Political Economy, 9(3), 436-464.
Hoan, T. Q., Chung, D. V., & Hoang, N. H. (2019). Taiwan–ASEAN trade relations: Trade structure and trade in value added. China Report, 55(2), 102-124.
Jacobi, S. (2017). Asia–Pacific regional integration—with or without the United States? New Zealand International Review, 42(3), 18-21.
Jangam, B. P. (2020). Global value chain embeddedness, labour productivity and employment in the Asia-Pacific countries. Studies in Economics and Finance, 38(2), 339-360.
Jeon, J.K. (2018). Trade intensity and business cycle synchronization: A reappraisal using value-added trade data. Journal of Korea Trade, 22(1), 36-49.
Jiang, R., & Tamang, T. (2020). The evolutionary dimensions of global investment networks. Journal of Economic Integration, 35(4), 576-608.
Karkanis, D., & Fotopoulou, M. (2022). Trade integration, product diversification and the gravity equation: Evidence from the Chinese merchandise imports. Journal of Chinese Economic and Foreign Trade Studies, 15(1), 16-34.
Kaul, V. K., & Chowdhury, T. R. (2018). India stimulating growth in Bay of Bengal region: Integrating key interests and strengthening innovation capacity. South Asian Survey, 25(1-2), 102-128.
Kim, Y. H., & Ha, E. H. (2016). Are rules of origin protective measures under preferential trade agreements? Journal of Korea Trade, 20(1), 74-96.
Kohpaiboon, A. (2019). Services in Thailand and participation in global value chains. Journal of Southeast Asian Economies, 36(2), 224-243.
Korwatanasakul, U. (2022). Revisiting Asian economic integration: Challenges and prospects. Journal of the Asia Pacific Economy, 27(2), 199-222.
Korwatanasakul, U., & Baek, Y. (2021). The effect of non-tariff measures on global value chain participation. Global Economic Review, 50(3), 193-212.
Le, H. T., Hoang, D. P., Doan, T. N., Pham, C. H., & To, T. T. (2022). Global economic sanctions, global value chains and institutional quality: Empirical evidence from cross-country data. The Journal of International Trade & Economic Development, 31(3), 427-449.
LeBaron, G., & Lister, J. (2021). The hidden costs of global supply chain solutions. Review of International Political Economy, 29(3), 669-695.
Lee, C. S., & Yun, M. (2018). Accounting of gross exports and tracing foreign values in the global pharmaceutical value chain: Where does Korea stand? Journal of Korea Trade, 22(4), 348-363.
Lee, J., & Jang, Y. J. (2016). The effect of comparative advantage of host country’s industry on multinationals’ M&A vs greenfield FDI decisions. Journal of Korea Trade, 20(3), 229-258.
Levy, D. L. (2008). Political contestation in global production networks. Academy of Management Review, 33(4), 943-963.
Macedoni, L., & Sdogati, F. (2013). Exchange rate devaluation and reshuffling of global jobs. Journal of Economic Integration, 28(2), 241-268.
Márquez-Ramos, L. (2021). Value-chain activities and individual wages. Critical Perspectives on International Business, 17(1), 53-71.
Matsumura, A. (2016). Regional trade integration by environmental goods. Journal of Economic Integration, 31(1), 1-40.
Meng, B., Fang, Y., Guo, J., & Zhang, Y. (2017). Measuring China’s domestic production networks through trade in value-added perspectives. Economic Systems Research, 29(1), 48-65.
Meshkova, T. A., & Moiseichev, E. I. (2016). Russia’s experience of foresight implementation in global value chain research. Journal of Innovation and Entrepreneurship, 5(1), 1-35.
Miroudot, S., & Nordström, H. (2020). Made in the world? Global value chains in the midst of rising protectionism. Review of Industrial Organization, 57(2), 195-222.
Moher, D., Liberati, A., Tetzlaff, J., Altman, D. G., & Prisma Group. (2010). Preferred reporting items for systematic reviews and meta-analyses: the PRISMA statement. International Journal of Surgery, 8(5), 336-341.
Nyagadza, B., Pashapa, R., Chare, A., Mazuruse, G., & Hove, P. K. (2022). Digital technologies, Fourth Industrial Revolution (4IR) & Global Value Chains (GVCs) nexus with emerging economies’ future industrial innovation dynamics. Cogent Economics & Finance, 10(1), 2014654.
Pananond, P. (2013). Moving along the value chain: Emerging Thai multinationals in globally integrated industries. Asian Business & Management, 12(1), 85-114.
Paul, M., & Kumar, R. A. (2021). Import intensity of India’s manufactured exports: An industry level analysis. Indian Economic Review, 56(1), 67-90.
Podrecca, M., Orzes, G., Sartor, M., & Nassimbeni, G. (2021). Manufacturing internationalization: From distance to proximity? A longitudinal analysis of offshoring choices. Journal of Manufacturing Technology Management, 32(9), 346-368.
Purwono, D. R., Padilla, M. A. E., Sugiharti, L., Unggul Heriqbaldi, D., & Handoyo, R. D. (2020). Value chains, production networks and regional integration: The case of Indonesia. Jurnal Ekonomi Malaysia, 54(1), 135-151.
Smith, A. (2015). The state, institutional frameworks and the dynamics of capital in global production networks. Progress in Human Geography, 39(3), 290-315.
Taguchi, H. (2014). Dynamic impacts of global value chains participation on Asian developing economies. Foreign Trade Review, 49(4), 313-326.
Tokas, K., & Deb, A. K. (2020). CAGE distance framework and bilateral trade flows: case of India. Management Research Review, 43(10), 1157-1181.
Xing, Y. (2016). Global value chains and China's exports to high-income countries. International Economic Journal, 30(2), 191-203.
Yeung, H. W. C. (2014). Governing the market in a globalizing era: Developmental states, global production networks and inter-firm dynamics in East Asia. Review of International Political Economy, 21(1), 70-101.
Zhang, R., Zhao, J., & Zhao, J. (2021). Effects of free trade agreements on global value chain trade- a research perspective of GVC backward linkage. Applied Economics, 53(44), 5122-5134.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Thailand and The World Economy
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
