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
relation.isOrgUnitOfPublication a3789037-aec2-41bb-9888-1a95104b7f8c
relation.isOrgUnitOfPublication b1049ff1-5166-442c-9e14-ad804b064e38
relation.isSeriesOfPublication 9bcdf48e-4586-4550-b033-2063df2fe342
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