Global and Domestic Supply Chains: Does the Governance Matter for Local Suppliers' Performance?

Pietrobelli, Carlo; Saliola, Federica

Title:

Global and Domestic Supply Chains: Does the Governance Matter for Local Suppliers' Performance?

dc.contributor.author	Pietrobelli, Carlo
dc.contributor.author	Saliola, Federica
dc.contributor.corporatename	Università degli studi Roma tre
dc.contributor.corporatename	World Bank
dc.date.accessioned	2010-10-27T20:48:21Z
dc.date.available	2010-10-27T20:48:21Z
dc.date.issued	2006-10
dc.description	Presented at the GLOBELICS 2006 conference in India during 4-7 October 2006.	en_US
dc.description	Session I-6 FDI: Spillovers and Competitiveness
dc.description.abstract	There is a growing literature exploring the increasing fragmentation of production processes and the evolution of internationally-dispersed but functionally-integrated economic activities. However, most of this literature appears to neglect an important part of the story, that is the form and the organization of the relationships (the governance) among the various actors involved in these activities, and their implications for development. We develop this analysis in this paper, and explore it empirically with a new dataset on Thailand. In order to address this issue, we study global and domestic value chains in Thailand, and develop a quantitative measure of their governance, which takes into account different levels and types of buyers’ involvement with suppliers’ activities. We then use this measure to explore econometrically its relationship with suppliers’ performance. An important finding is that the relationships MNCs have with their suppliers is multifold and generally more intense than for domestic value chains. Our estimates suggest that more intense buyers’ involvement with local suppliers, not only in the definition of products’ characteristics, design and quality, but also in technology dissemination and R&D is generally associated with higher suppliers’ productivity. However, the governance of the value chain appears to affect the productivity of domestic value chains’ suppliers to a greater extent than for firms supplying MNCs or for exporters. We suggest that this result may be explained by the different nature of the information and knowledge being exchanged, and by the gaps between the leader and its suppliers.	en_US
dc.identifier.uri	http://hdl.handle.net/1853/35622
dc.language.iso	en_US	en_US
dc.publisher	Georgia Institute of Technology	en_US
dc.relation.ispartofseries	GLOBELICS04. Plenary Session I: Innovation Policy, Competitiveness and Economic Development	en_US
dc.subject	Foreign direct investment	en_US
dc.subject	Global value chains	en_US
dc.subject	Multinational corporations	en_US
dc.subject	Productivity	en_US
dc.subject	Upgrading	en_US
dc.title	Global and Domestic Supply Chains: Does the Governance Matter for Local Suppliers' Performance?	en_US
dc.title.alternative	Power Relationships along the Value Chain: Multinational Firms, Global Buyers, and Local Suppliers’ Performance	en_US
dc.type	Text
dc.type.genre	Proceedings
dspace.entity.type	Publication
local.contributor.corporatename	School of Public Policy
local.contributor.corporatename	Ivan Allen College of Liberal Arts
local.relation.ispartofseries	Globelics Conference
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