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  • 1
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Winkler, Deborah Potential and Actual FDI Spillovers in Global Value Chains
    Abstract: Using newly collected survey data on direct supplier-multinational linkages in Chile, Ghana, Kenya, Lesotho, Mozambique, Swaziland, and Vietnam, this paper first evaluates whether foreign investors differ from domestic producers in terms of their potential to generate positive spillovers for local suppliers. It finds that foreign firms outperform domestic producers on several indicators, but have fewer linkages with the local economy and offer less supplier assistance, resulting in offsetting effects on the spillover potential. The paper also studies the relationship between foreign investor characteristics and linkages with the local economy as well as assistance extended to local suppliers. It finds that foreign investor characteristics matter for both. The paper also examines the role of suppliers' absorptive capacities in determining the intensity of their linkages with multinationals. The results indicate that several supplier characteristics matter, but these effects also depend on the length of the supplier relationship. Finally, the paper assesses whether assistance or requirements from a multinational influence spillovers on suppliers. The results confirm the existence of positive effects of assistance (including technical audits, joint product development, and technology licensing) on foreign direct investment spillovers, while the analysis finds no evidence of demand effects
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  • 2
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: Policy Notes
    Series Statement: World Bank E-Library Archive
    Abstract: The Indonesian manufacturing sector experienced a 'lost decade' in the aftermath of the Asian financial crisis. While many believe that the sector is now in inexorable decline, this note argues that there may be a 'second chance' for export manufacturing, given Indonesia's relative cost competitiveness, the rapidly growing domestic market, and the opportunities of integrating into value chains facilitated by new regional growth poles. Simply relying on these factors, however, may result in short-term growth but will ultimately lead back to stagnation. Instead, Indonesia must use this opportunity to make an aggressive effort to improve manufacturing sector competitiveness, including addressing traditional investment climate issues, but most importantly, weaknesses in the quality and innovation environment. It is through this that the Indonesian manufacturing sector will begin to move up the value chain, build deep and competitive domestic value chains, and deliver quality and sustainable job opportunities
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  • 3
    Language: English
    Pages: 1 Online-Ressource (34 pages)
    Parallel Title: Erscheint auch als Shepherd, Ben Leveraging Trade for More and Better Job Opportunities in Developing Countries: A Framework for Policy
    Keywords: Economic Integration ; International Economics and Trade ; Labor Markets ; Labor Policy ; Macroeconomics and Economic Growth ; Tariff ; Taxation and Subsidies ; Trade ; Trade Policy ; Trade-Related Tax
    Abstract: Trade and labor markets are intimately connected. This connection presents governments with a dual economic challenge that cannot be resolved without social compromise: maximizing aggregate gains but minimizing disaggregated costs, which can include losses to individuals and groups. This paper draws on recent research to develop a framework for thinking rigorously about these linkages. It then examines aspects of policy design and implementation that relate directly to labor market outcomes. It discusses three sets of policies that are required to help resolve the government's dual challenge in a sustainable way: policies for people, sectors, and places. The framework includes policies to mitigate losses and facilitate movement of workers, classical trade policies, and a broad set of complementary policies that reduce trade costs. It also looks at the need for fiscal space to implement policies, and highlights the tension between tariff reductions and trade-related taxes, especially in countries where trade taxes account for a significant proportion of total government revenue
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  • 4
    Language: English
    Pages: 1 Online-Ressource (53 pages)
    Parallel Title: Erscheint auch als Winkler, Deborah Linking Trade to Jobs, Incomes, and Activities: New Stylized Facts for Low- and Middle-Income Countries
    Keywords: Economic Development ; Employment ; Employment Sectors ; General Manufacturing ; Global Value Chains ; Global Value Chains and Business Clustering ; Industry ; International Economics and Trade ; International Trade ; Macroeconomics and Economic Growth ; Occupations ; Trade Facilitation
    Abstract: Trade expansion can create more and better jobs. This paper revisits the linkages between trade and jobs, focusing on employment, labor incomes, and job activities across a large sample of countries and sectors over 1995 to 2018. Instrumental variables regressions and new input-output measures of jobs and activities in exports highlight several patterns: Exports and especially imports of intermediate inputs are associated with more jobs and higher incomes, while final imports show weaker correlations. Manufacturing has the biggest potential for job and income creation both directly and indirectly in supplying sectors. As countries move from specialization in commodities to limited manufacturing to advanced manufacturing and services global value chains, export-employment and export-income elasticities increase. Global value chain-intensive developing countries tend to have larger shares of production activities in exports compared to resource-intensive countries. As countries get richer, nonproduction activities in exports, such as support, engineering, and managerial services, become increasingly important. Finally, the paper explores the role of policy for the export job share across countries
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  • 5
    Language: English
    Pages: 1 Online-Ressource (50 pages)
    Parallel Title: Erscheint auch als Vazquez, Emmanuel Trade and Local Labor Market Outcomes in Mexico: Disentangling the Channels and the Role of Geography, Sectors, and Trade Types
    Keywords: Connectivity ; Education Spending ; Employment ; Exports ; Global Value Chains ; Imports ; Informality ; International Economics and Trade ; International Trade ; Labor Market ; Local Impacts ; Migration ; Trade and Labor
    Abstract: This study provides new evidence on the local labor market impacts of trade, differentiating between the employment, income, migration, and informality channels. It uses a unique dataset matching information on exports and imports from customs with indicators on employment and labor incomes for around 2,000 Mexican municipalities over 2004-14. The analysis uses an instrumental variable approach that combines the initial structure of trade across municipalities with global trends in trade between low- and middle-income countries (excluding Mexico) and the United States by sector. First, the study finds that expanding exports per worker in Mexico's municipalities increased labor force participation but not employment rates. Exports also raised total labor incomes but not average labor incomes, implying a growing labor supply. The results also find that export and import expansion increased immigration and lowered the rate of informal workers. Second, the analysis examines differences by geography and sectors. It finds that trade affected labor markets in the North through the income and migration channels and in the South through the employment and informality channels. Exports benefitted the total incomes of workers in both the manufacturing and service sectors but reduced informality only in manufacturing. Third, the study suggests a more favorable role of intermediate relative to final imports, driven by manufacturing imports. It also finds evidence for positive spillovers from global value chain participation through the employment and income channels. Finally, it examines how local policy mediates the labor market effects from trade, focusing on connectivity, labor market flexibility, and education spending
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  • 6
    Language: English
    Pages: 1 Online-Ressource (34 pages)
    Parallel Title: Erscheint auch als Lewandowski, Piotr The Role of Global Value Chains for Worker Tasks and Wage Inequality
    Keywords: Cross-Country Division of Work ; Global Value Chains ; Globalization ; International Survey Data ; Private Sector Development, Inequality, Routine Task Intensity ; Social Protections and Labor ; Value Chain Participation ; Wage Inequality
    Abstract: This paper studies the relationship between participation in global value chains, worker routine task intensity, and within-country wage inequality. It uses unique survey data from 47 countries across the development spectrum to calculate worker-level, country-specific routine task intensity and combines them with sectoral measures of backward and forward global value chains participation. Higher global value chains participation is associated with more routine-intensive work, specifically among offshorable occupations, especially in countries at lower development levels. The results by broad sectors contrast sharply: higher global value chains participation is linked to a higher routine task intensity in offshorable occupations in the industry but a lower routine task intensity in non-offshorable occupations in business services. Higher worker-level routine task intensity is strongly associated with lower wages, so global value chains participation indirectly widens the within-country wage inequality through this routine task intensity channel. At the same time, global value chains participation directly contributes to reduced wage inequality, except for the richest countries. Overall, this analysis finds that global value chains participation reduces wage inequality in most low- and middle-income countries that receive offshored jobs but widens wage inequality in high-income countries that offshore jobs
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  • 7
    ISBN: 9781464801266 , 9781464801273
    Language: English
    Pages: Online-Ressource
    Edition: 2014 World Bank eLibrary
    Series Statement: Directions in development
    DDC: 332.673096
    Keywords: Investments, Foreign ; Technology transfer ; Investments, Foreign ; Technology transfer ; Investments, Foreign ; Technology transfer ; Africa, Sub-Saharan ; Africa, Sub-Saharan Economic conditions ; Africa, Sub-Saharan Economic conditions
    Description / Table of Contents: Context, objectives, and methodologyConceptual frameworkThe role of mediating factors for FDI spillovers in developing countries : Evidence from a global datasetDetermining the nature and extent of spillovers : Empirical assessmentSector case study : miningSector case study : agribusinessSector case study : apparelSummary of main conclusionsPolicy implications.
    Note: "This study was prepared by Thomas Farole (Senior Economist, World Bank- PRMTR) and Deborah Winkler (Consultant Economist, World Bank- PRMTR) along with a team including: Cornelia Staritz (Vienna University and Austrian Research Foundation for International Development); Stacey Frederick (Duke University Center on Globalization, Governance, & Competitiveness); Rupert Barnard, Michelle de Bruyn, Philippa McLaren, and Nick Kempson (Kaiser Associates Economic Development) , Includes bibliographical references
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  • 8
    Language: English
    Pages: Online-Ressource (41 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Farole, Thomas Firm Location and the Determinants of Exporting in Developing Countries
    Abstract: Using a cross-section of more than 40,000 manufacturing and services firms in 79 developing countries from the World Bank's Enterprise Surveys Database, this paper assesses how firm location determines the likelihood and extent of exporting in developing countries. Descriptive statistics confirm higher export participation (but not intensity) for firms in core versus non-core regions, despite the finding that firms in the core assess many aspects of the investment climate more negatively. Results from a probit model show that, in addition to firm-specific characteristics, both regional investment climate and agglomeration factors have a significant impact on export participation. Specifically, customs clearance and electricity quality matter for export participation for manufacturing firms. Although localization economies and export spillovers are associated with increased exporting, the opposite is found for urbanization economies for both manufacturing and services firms. The analysis finds that firm-level determinants of exporting matter more for firms located in non-core regions, while regional determinants and agglomeration economies play a larger role in core regions. The findings point to the presence of congestion costs in the core, and suggest that policy interventions to target export participation are likely to have a greater impact if they are focused on core regions over non-core regions, where firm-specific factors predominate. Moreover, the importance of export spillovers and localization economies highlights the potential value of efforts to remove barriers to natural agglomeration both in core and non-core regions, for example through investments in infrastructure, the provision of social services, and regional integration arrangements
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  • 9
    Language: English
    Pages: Online-Ressource (58 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Farole, Thomas Foreign Firm Characteristics, Absorptive Capacity and the Institutional Framework
    Abstract: Using a cross-section of more than 25,000 domestic manufacturing firms in 78 low and middle-income countries from the World Bank's Enterprise Surveys, this paper assesses how mediating factors influence intra-industry productivity spillovers to domestic firms from foreign direct investment. It identifies three types of mediating factors: (i) foreign direct investment spillover potential, (ii) domestic firm absorptive capacity, and (iii) the host country's institutional framework. It finds that all three affect the extent and direction of foreign direct investment spillovers on domestic firm productivity. However, the impact of mediating factors depends significantly on the level of domestic firms' productivity and the structure of foreign ownership
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  • 10
    Language: English
    Pages: Online-Ressource (40 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: Milberg, William Trade Crisis and Recovery
    Keywords: Globale Wertschöpfungskette ; Internationale Wirtschaft ; Außenhandelsstruktur ; Wirtschaftskrise ; Welt
    Abstract: The recent large and rapid slowdown in economic activity has resulted in even larger and more rapid declines in international trade. As world trade is set to rebound, this paper addresses three questions: (i) Will trade volumes rebound in a symmetric fashion as world economic growth rebounds? (ii) Will the crisis result in a change in the structure of trade, and in particular will it lead to a reversal of the pattern of more diversified sourcing and thus to a consolidation of global value chains? (iii) What policies can improve the prospects for developing country growth in the event that trade volumes do not rebound symmetrically and there is a consolidation of some global value chains?
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