An Investment Perspective on Global Value Chains

This book examines the role of foreign direct investment (FDI) in global value chains (GVCs). To stimulate economic transformation through GVCs, policy makers in developing countries need to better understand the business strategies of multinational corporations (MNCs), internationalization pathways...

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Bibliographic Details
Main Authors:	Qiang, Christine Zhenwei, Liu, Yan, Steenbergen, Victor
Other Authors:	Heher, Ulla
Format:	Book
Published:	Washington, DC: World Bank 2021
Subjects:	INVESTMENT CLIMATE FOREIGN DIRECT INVESTMENT GLOBAL VALUE CHAIN MULTI-NATIONAL CORPORATION MULTINATIONAL ENTERPRISE INVESTMENT POLICY CORONAVIRUS COVID-19 PANDEMIC IMPACT ECONOMIC DISRUPTION
Online Access:	https://documents.worldbank.org/en/publication/documents-reports/documentdetail/308861620996811293/an-investment-perspective-on-global-value-chains http://hdl.handle.net/10986/35526

id	okr-10986-35526
recordtype	oai_dc
spelling	okr-10986-355262021-05-14T14:45:10Z An Investment Perspective on Global Value Chains Qiang, Christine Zhenwei Liu, Yan Steenbergen, Victor Heher, Ulla Paganini, Monica Eltgen, Maximilian Philip Chong, Yew Keat INVESTMENT CLIMATE FOREIGN DIRECT INVESTMENT GLOBAL VALUE CHAIN MULTI-NATIONAL CORPORATION MULTINATIONAL ENTERPRISE INVESTMENT POLICY CORONAVIRUS COVID-19 PANDEMIC IMPACT ECONOMIC DISRUPTION This book examines the role of foreign direct investment (FDI) in global value chains (GVCs). To stimulate economic transformation through GVCs, policy makers in developing countries need to better understand the business strategies of multinational corporations (MNCs), internationalization pathways for domestic firms, and how policies can create a favorable environment for both types of firms. Part I brings together the latest theories and empirical evidence to illustrate the mutually reinforcing relationship between FDI and GVC participation. It argues that MNCs have driven the phenomenal rise of GVCs in the past three decades as they have unbundled production processes and spread their networks on a global scale. Domestic firms benefit considerably from their participation in GVCs as they learn from MNCs through investment, partnerships, or trade. Part II includes six case studies examining the approaches of developing countries to leveraging FDI to stimulate and facilitate GVC participation and upgrading. The cases include Kenya (horticulture), Honduras (apparel), Malaysia (electronics), and Mauritius (tourism). Another case focuses on the digital economy for the Republic of Korea, India, and China. Each case study presents a different approach by which policy makers have leveraged FDI to stimulate and facilitate GVC participation and upgrading. A quantitative case study on Rwanda and West Bengal, India, uses firm- and transaction-level data to provide new insights into the dynamics between MNCs and domestic firms in selected value chains. The report also discusses the recent COVID-19 (coronavirus) pandemic and its potential impact on FDI and GVCs. The outbreak has triggered new questions about GVCs and accelerated precrisis global trends such as digitalization and economic nationalism. How MNCs and their supplier firms respond to the supply and demand shocks as well as policy uncertainties will play a critical role in crisis responses and recovery. 2021-04-29T19:19:29Z 2021-04-29T19:19:29Z 2021-05-13 Book https://documents.worldbank.org/en/publication/documents-reports/documentdetail/308861620996811293/an-investment-perspective-on-global-value-chains 978-1-4648-1683-3 http://hdl.handle.net/10986/35526 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Publication China Honduras Kenya Malaysia Mauritius India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	INVESTMENT CLIMATE FOREIGN DIRECT INVESTMENT GLOBAL VALUE CHAIN MULTI-NATIONAL CORPORATION MULTINATIONAL ENTERPRISE INVESTMENT POLICY CORONAVIRUS COVID-19 PANDEMIC IMPACT ECONOMIC DISRUPTION
spellingShingle	INVESTMENT CLIMATE FOREIGN DIRECT INVESTMENT GLOBAL VALUE CHAIN MULTI-NATIONAL CORPORATION MULTINATIONAL ENTERPRISE INVESTMENT POLICY CORONAVIRUS COVID-19 PANDEMIC IMPACT ECONOMIC DISRUPTION Qiang, Christine Zhenwei Liu, Yan Steenbergen, Victor An Investment Perspective on Global Value Chains
geographic_facet	China Honduras Kenya Malaysia Mauritius India
description	This book examines the role of foreign direct investment (FDI) in global value chains (GVCs). To stimulate economic transformation through GVCs, policy makers in developing countries need to better understand the business strategies of multinational corporations (MNCs), internationalization pathways for domestic firms, and how policies can create a favorable environment for both types of firms. Part I brings together the latest theories and empirical evidence to illustrate the mutually reinforcing relationship between FDI and GVC participation. It argues that MNCs have driven the phenomenal rise of GVCs in the past three decades as they have unbundled production processes and spread their networks on a global scale. Domestic firms benefit considerably from their participation in GVCs as they learn from MNCs through investment, partnerships, or trade. Part II includes six case studies examining the approaches of developing countries to leveraging FDI to stimulate and facilitate GVC participation and upgrading. The cases include Kenya (horticulture), Honduras (apparel), Malaysia (electronics), and Mauritius (tourism). Another case focuses on the digital economy for the Republic of Korea, India, and China. Each case study presents a different approach by which policy makers have leveraged FDI to stimulate and facilitate GVC participation and upgrading. A quantitative case study on Rwanda and West Bengal, India, uses firm- and transaction-level data to provide new insights into the dynamics between MNCs and domestic firms in selected value chains. The report also discusses the recent COVID-19 (coronavirus) pandemic and its potential impact on FDI and GVCs. The outbreak has triggered new questions about GVCs and accelerated precrisis global trends such as digitalization and economic nationalism. How MNCs and their supplier firms respond to the supply and demand shocks as well as policy uncertainties will play a critical role in crisis responses and recovery.
author2	Heher, Ulla
author_facet	Heher, Ulla Qiang, Christine Zhenwei Liu, Yan Steenbergen, Victor
format	Book
author	Qiang, Christine Zhenwei Liu, Yan Steenbergen, Victor
author_sort	Qiang, Christine Zhenwei
title	An Investment Perspective on Global Value Chains
title_short	An Investment Perspective on Global Value Chains
title_full	An Investment Perspective on Global Value Chains
title_fullStr	An Investment Perspective on Global Value Chains
title_full_unstemmed	An Investment Perspective on Global Value Chains
title_sort	investment perspective on global value chains
publisher	Washington, DC: World Bank
publishDate	2021
url	https://documents.worldbank.org/en/publication/documents-reports/documentdetail/308861620996811293/an-investment-perspective-on-global-value-chains http://hdl.handle.net/10986/35526
_version_	1764483216038690816

An Investment Perspective on Global Value Chains

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