1st Edition
Harnessing Global Value Chains for regional development How to upgrade through regional policy, FDI and trade
This Regional Studies Policy Impact Book brings together the latest academic evidence and public policy insights with global value chains (GVCs) and foreign direct investment (FDI). It comprises a comprehensive description and explanation of why they matter for regional development and policy. It focuses on how sub-national regions can leverage them for innovation and upgrading, or "levelling up". Specifically, its attention is on how regions can build, embed and reshape GVCs to their local enhancement.
The book makes the case for proactive sub-national public policy, on the engagement of GVCs. Vertically engaging with FDI rather than setting the ground and letting manna drop from heaven. Its chosen approach is three-fold. First, it looks at why. Why GVCs and FDI matter and why sub-national policymakers should focus their attention on upgrading. It critically reviews different streams of research and evidence. This is in order to identify key definitions and conceptual foundations for the analysis of the link between GVCs, FDI and innovation at the sub-national and local level. Second, it looks at what. This is through new conceptualisations and critical insights on the regional drivers and impacts of global connectivity, bridging macro-international and micro-firm level approaches. Third, is the critical how. How policymakers can leverage GVCs and FDI for their regional benefit. It aims to review empirical evidence and available policy evaluation in order to highlight what works (and what does not) when leveraging these concepts to shape public policies with particular reference to less developed regions.
If the above is of interest, then the book is for you. It is based on leading academic literature but uses non-technical language throughout making it engaging for policymakers, researchers and students alike.
1. Introduction 2. Why do GVCs matter for regions: Key concepts, definitions and trends 3. How to upgrade through regional policy: building GVCs through FDI 4. How to upgrade through regional policy: embedding GVCs through FDI 5. How to upgrade through regional policy: reshaping GVCs through FDI 6. Looking to the future and useful tools for leveraging GVCs
Biography
Riccardo Crescenzi is a Professor of Economic Geography at the London School of Economics and Political Science (LSE), UK.
Oliver Harman is a Cities Economist for the International Growth Centre’s (IGC) Cities that Work initiative based at the Blavatnik School of Government, University of Oxford, UK, and Associate Staff at the London School of Economics and Political Science (LSE), UK.
"The new frontier for regional policy makers is to understand how the recent reshaping of trade, investment flows and GVCs through pandemic and conflict will affect regional innovation capabilities. This important new book brings together key insights from the most recent research to provide tools to understand these changes. It should be essential reading for anyone interested in developing regional policies to manage the green transition and disruptive technological change in a rapidly changing world." — Peter Berkowitz, Director - Policy, Directorate General for Regional and Urban Policy, European Commission
"Often national policies neglect existing country interdependencies through trade and globalization. This book shows how subnational policies can go beyond insights from country by country analyses that assume that each economy is isolated from the others and that markets of products and factors are isolated from one another. It shows that once we factor in the degree of integration among countries through trade and production networks new opportunities can be identified for driving up local competitiveness and value addition using trade and FDI. It is a timely new book shares how reforms and policy change can harness GVCs, blending academic evidence with practitioner lessons. Changing the paradigm of subnational policies is a core message in this book. The policy recipes in this book can inform readers how to act upon GVC’s potential—boosting growth, creating better jobs and reducing poverty." — Daria Taglioni, Research Manager, Trade and International Integration, Development Research Group, The World Bank.
“In today’s increasingly interconnected global economy, place-based development strategy must be strategic towards leveraging global economic opportunities. Riccardo Crescenzi and Oliver Harman explore this intricate landscape and provide a valuable guide for regional policymakers in their aptly titled book […] Harnessing Global Value Chains for Regional Development is a must-read for policymakers, researchers and anyone keen on understanding the dynamics of modern economic development, especially as they relate to global economic production. Crescenzi and Harman have crafted an important work that bridges theory with actionable insights, offering a roadmap for regions keen on leveraging GVCs for sustainable growth.“ -- Ricardo Hausmann, Founder and Director of Harvard’s Growth Lab and the Rafik Hariri Professor of the Practice of International Political Economy at Harvard Kennedy School, U.S.A.
“A new template for regions to harness global value chains. […] The book provides a fresh perspective on regional development, one in which the emphasis for regions upgrading their economies falls on tasks, rather than sectors. […] The authors provide a comprehensive framework for sub-national authorities to connect with GVCs and the main actors shaping them, particularly but not exclusively through FDI, as well as embed them in the local economic fabric to upgrade the local economy and reap higher benefits from the GVC connection. […] Given the state of flux of many value chains, it could not be more timely. ” -- Jacopo Dettoni, Editor of fDi Intelligence, The Financial Times.
“a book that does a great job presenting the opportunities of GVC integration. It is highly valuable, not only for policy makers but also for researchers and students. Economic geographers should feel encouraged to engage in similar efforts to make their research more accessible to practitioners in order to boost the discipline’s impact on economic and development policies.” -- Sören Scholvin, Researcher at University of Cologne, Germany.
“For readers and researchers, this publication could not be timelier. […] Echoing a key theme from some of my earlier work, it is a not only a matter of whether to participate in the global economy, but how to do so gainfully. This policy impact book brings us closer to this reality.” -- Gary Gereffi, Emeritus Professor of Sociology and Director of the Global Value Chains Center, Duke University, U.S.A.
“At the OECD, I had the opportunity to follow the conception of this work. Its development and iteration, through dialogue with academics and policymakers alike, has only further strengthened its relevance. It is a fine piece of empirical research that provides sound ground for policy implementation. A main message is that we must change the paradigm upon which we view policy on GVCs. It is not enough to be open. GVCs do matter, but they should be leveraged for regional innovation and upgrading.” Joaquim Oliveira Martins, Special Advisor to the European Union Commissioner for Cohesion and Reforms; Counsellor, Centre for Prospective Studies and International Information, Paris, France; Lecturer, PSL—University Paris Dauphine, Paris, France
“Reading through the book’s contents has been an “Aha!” experience for me. It feels like finally the pieces in the puzzle of moving subnational/regional development to the next level are being handed to us, particularly so as leaders in Africa. […] The book zooms into practical ways in which regions can identify and forge strong and equitable partnerships with international chains to access international markets without the traditional west to south connotations. It also shares how to lift the economic well-being of the people they host.” -- Jennifer Musisi, First City Leader in Residence, Bloomberg Harvard City Leadership Initiative, Harvard University, Cambridge, U.S.A; Senior Policy Advisor, International Growth Centre and Council Member, Cities that Work Council; Member of Board of Directors, C40 Cities; UN Ambassador for Sustainable Development, SDG 11; Council Member, Global Future Council on Cities of Tomorrow, World Economic Forum; Former Executive Director of Kampala Capital City Authority, Kampala, Uganda.
