IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v37y2012i4p443-451.html
   My bibliography  Save this article

What determines the breadth and depth of Zambia's backward linkages to copper mining? The role of public policy and value chain dynamics

Author

Listed:
  • Fessehaie, Judith

Abstract

This paper investigates the dynamics of upstream linkages development to copper mining in Zambia. The breadth and depth of the local mining supply chain was deeply shaped by policies adopted in the 1990s under the Structural Adjustment Programme. These policies succeeded in attracting much-needed FDI in the mining sector, including Chinese and Indian FDI, but had a negative impact on the level of value-addition undertaken by local suppliers. In the post-privatisation era, the dynamics of the local supply chain suggest that supply firms' upgrading and sales growth were determined by firm ownership and value chain governance. In fact, forward linkages to buyers other than Chinese and Indian mining companies, and backward linkages to parent companies and technology providers were critical in supporting supply firms' success in the mining value chain.

Suggested Citation

  • Fessehaie, Judith, 2012. "What determines the breadth and depth of Zambia's backward linkages to copper mining? The role of public policy and value chain dynamics," Resources Policy, Elsevier, vol. 37(4), pages 443-451.
    • Handle: RePEc:eee:jrpoli:v:37:y:2012:i:4:p:443-451
    DOI: 10.1016/j.resourpol.2012.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420712000396
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2012.06.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Walker, M.I. & Minnitt, R.C.A., 2006. "Understanding the dynamics and competitiveness of the South African minerals inputs cluster," Resources Policy, Elsevier, vol. 31(1), pages 12-26, March.
    2. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014.
    3. Raphael Kaplinsky & Mike Morris, 2009. "Chinese FDI in Sub-Saharan Africa: Engaging with Large Dragons," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(4), pages 551-569, September.
    4. John Lungu, 2008. "Copper Mining Agreements in Zambia: Renegotiation or Law Reform?," Review of African Political Economy, Taylor & Francis Journals, vol. 35(117), pages 403-415, September.
    5. Peter J Buckley & L Jeremy Clegg & Adam R Cross & Xin Liu & Hinrich Voss & Ping Zheng, 2007. "The determinants of Chinese outward foreign direct investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 499-518, July.
    6. Jaya Prakash Pradhan, "undated". "Growth of Indian Multinationals in the World Economy: Implications for Development," Working Papers 0704, Institute for Studies in Industrial Development (ISID).
    7. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 451-496, June.
    8. Gavin Bridge, 2008. "Global production networks and the extractive sector: governing resource-based development," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 389-419, May.
    9. International Monetary Fund, 2008. "Zambia: Selected Issues," IMF Staff Country Reports 2008/029, International Monetary Fund.
    10. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    11. Unknown, 2005. "Forward," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183804, Slovenian Association of Agricultural Economists (DAES).
    12. Jenkins, Rhys & Edwards, Chris, 2006. "The economic impacts of China and India on sub-Saharan Africa: Trends and prospects," Journal of Asian Economics, Elsevier, vol. 17(2), pages 207-225, April.
    13. Harry G. Broadman, 2007. "Africa's Silk Road : China and India's New Economic Frontier," World Bank Publications - Books, The World Bank Group, number 7186.
    14. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghebrihiwet, Nahom, 2019. "FDI technology spillovers in the mining industry: Lessons from South Africa's mining sector," Resources Policy, Elsevier, vol. 62(C), pages 463-471.
    2. Nicholas A. Phelps & Miguel Atienza & Martin Arias, 2015. "Encore for the Enclave: The Changing Nature of the Industry Enclave with Illustrations from the Mining Industry in Chile," Economic Geography, Taylor & Francis Journals, vol. 91(2), pages 119-146, April.
    3. Boire, Sidiki & Nell, Kevin S., 2021. "The enclave hypothesis and Dutch disease effect: A critical appraisal of Mali's gold mining industry," Resources Policy, Elsevier, vol. 74(C).
    4. Parker, Rachel & Cox, Stephen, 2018. "How the globalisation and financialisation of mining Majors affects linkage development with local engineering and technology suppliers in the Queensland resources industry," Resources Policy, Elsevier, vol. 58(C), pages 125-130.
    5. Weldegiorgis, Fitsum S. & Dietsche, Evelyn & Franks, Daniel M., 2021. "Building mining's economic linkages: A critical review of local content policy theory," Resources Policy, Elsevier, vol. 74(C).
    6. Wegenast, Tim & Beck, Jule, 2020. "Mining, rural livelihoods and food security: A disaggregated analysis of sub-Saharan Africa," World Development, Elsevier, vol. 130(C).
    7. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Mining-related national systems of innovation in southern Africa National trajectories and regional integration," WIDER Working Paper Series 084, World Institute for Development Economic Research (UNU-WIDER).
    8. Hui Wang & Xin Zhong, 2023. "An Empirical Study on the Impact of Chinese OFDI on the Global Value Chain Positions of Countries Along the Belt and Road and Threshold Effects," SAGE Open, , vol. 13(1), pages 21582440231, February.
    9. John Page, 2018. "Rowing against the current: Diversification in Africa’s resource-rich economies," WIDER Working Paper Series 68, World Institute for Development Economic Research (UNU-WIDER).
    10. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Can mining promote industrialization?: A comparative analysis of policy frameworks in three Southern African countries," WIDER Working Paper Series wp-2016-83, World Institute for Development Economic Research (UNU-WIDER).
    11. Kaplinsky, Raphael, 2015. "Technological upgrading in global value chains and clusters and their contribution to sustaining economic growth in low and middle income economies," MERIT Working Papers 2015-027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Macatangay, Rafael Emmanuel “Manny”, 2016. "Optimal local content requirement policies for extractive industries," Resources Policy, Elsevier, vol. 50(C), pages 244-252.
    13. Fabrizio Fusillo & Silvia Nenci & Carlo Pietrobelli & Francesco Quatraro, 2024. "Co-evolutionary patterns of GVC-trade and knowledge flows in the mining industry: evidence from Latin America," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(4), pages 1011-1036.
    14. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Can mining promote industrialization? A comparative analysis of policy frameworks in three Southern African countries," WIDER Working Paper Series 083, World Institute for Development Economic Research (UNU-WIDER).
    15. Vincent Géronimi & Claire Mainguy, 2020. "Exploitation minière et développement : des effets toujours controversés. Introduction," Mondes en développement, De Boeck Université, vol. 0(1), pages 7-29.
    16. Judith Fessehaie & Zavareh Rustomjee & Lauralyn Kaziboni, 2016. "Mining-related national systems of innovation in southern Africa: National trajectories and regional integration," WIDER Working Paper Series wp-2016-84, World Institute for Development Economic Research (UNU-WIDER).
    17. John Page, 2018. "Rowing against the current: Diversification in Africa's resource-rich economies," WIDER Working Paper Series wp-2018-68, World Institute for Development Economic Research (UNU-WIDER).
    18. Stubrin, Lilia, 2018. "Reprint of: Innovation, learning and competence building in the mining industry. The case of knowledge intensive mining suppliers (KIMS) in Chile," Resources Policy, Elsevier, vol. 58(C), pages 62-70.
    19. Das, Khanindra Ch & Mahalik, Mantu Kumar & Sadorsky, Perry, 2023. "Tax provision by international subsidiaries of Indian extractive industry multinationals: Do environmental pollution and corruption matter?," Resources Policy, Elsevier, vol. 80(C).
    20. Youmanli Ouoba, 2017. "Artisanal versus industrial mining: impacts on poverty in regions of Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(3), pages 181-191, October.
    21. Issabayev, Murat & Rizvanoghlu, Islam, 2019. "Optimal choice between local content requirement and fiscal policy in extractive industries: A theoretical analysis," Resources Policy, Elsevier, vol. 60(C), pages 1-8.
    22. Marc Bascompta & Lluís Sanmiquel & Carla Vintró & Mohammad Yousefian, 2022. "Corporate Social Responsibility Index for Mine Sites," Sustainability, MDPI, vol. 14(20), pages 1-24, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    2. Staritz, Cornelia, 2012. "Value chains for development? Potentials and limitations of global value chain approaches in donor interventions," Working Papers 31, Austrian Foundation for Development Research (ÖFSE).
    3. Dallas, Mark P., 2014. "Manufacturing Paradoxes: Foreign Ownership, Governance, and Value Chains in China’s Light Industries," World Development, Elsevier, vol. 57(C), pages 47-62.
    4. Fucai Lu & Wei He & Yang Cheng & Sihua Chen & Liang Ning & Xiaoan Mei, 2015. "Exploring the Upgrading of Chinese Automotive Manufacturing Industry in the Global Value Chain: An Empirical Study Based on Panel Data," Sustainability, MDPI, vol. 7(5), pages 1-23, May.
    5. Linqing Liu & Shiye Mei, 2016. "Visualizing the GVC research: a co-occurrence network based bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 109(2), pages 953-977, November.
    6. Marion Werner & Jennifer Bair & Victor Ramiro Fernández, 2014. "Linking Up to Development? Global Value Chains and the Making of a Post-Washington Consensus," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1219-1247, November.
    7. He, Shaowei & Khan, Zaheer & Shenkar, Oded, 2018. "Subsidiary capability upgrading under emerging market acquirers," Journal of World Business, Elsevier, vol. 53(2), pages 248-262.
    8. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.
    9. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre.
    10. Emanuele Bacchiocchi & Massimo Florio & Anna Giunta, 2012. "Internationalisation and the agglomeration effect in the global value chain: the case of Italian automotive suppliers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(3), pages 267-290.
    11. Anna Giunta & Domenico Scalera & Francesco Trivieri & Jeffrey B. Nugent & Mariarosaria Agostino, 2011. "Firm Productivity, Organizational Choice and Global Value Chain," Working Papers 2011R09, Orkestra - Basque Institute of Competitiveness.
    12. Saon Ray & Smita Miglani, 2018. "Upgrading in the Indian automobile sector: The role of lead firms," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 360, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    13. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    14. Carlo Pietrobelli & Cornelia Staritz, 2018. "Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 557-574, July.
    15. Mike Morris & Leonhard Plank & Cornelia Staritz, 2016. "Regionalism, end markets and ownership matter: Shifting dynamics in the apparel export industry in Sub Saharan Africa," Environment and Planning A, , vol. 48(7), pages 1244-1265, July.
    16. Paulina Ramirez & Helen Rainbird, 2010. "Making the connections: bringing skill formation into global value chain analysis," Work, Employment & Society, British Sociological Association, vol. 24(4), pages 699-710, December.
    17. Pipkin, Seth, 2011. "Local Means in Value Chain Ends: Dynamics of Product and Social Upgrading in Apparel Manufacturing in Guatemala and Colombia," World Development, Elsevier, vol. 39(12), pages 2119-2131.
    18. Yoruk, Deniz E., 2019. "Dynamics of firm-level upgrading and the role of learning in networks in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 341-369.
    19. Cuervo-Cazurra, Alvaro & Pananond, Pavida, 2023. "The rise of emerging market lead firms in global value chains," Journal of Business Research, Elsevier, vol. 154(C).
    20. Emanuele Brancati & Raffaele Brancati & Andrea Maresca, 2017. "Global value chains, innovation and performance: firm-level evidence from the Great Recession," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1039-1073.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:37:y:2012:i:4:p:443-451. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.