IDEAS home Printed from https://ideas.repec.org/a/ksp/journ6/v4y2017i3p278-286.html
   My bibliography  Save this article

Smile curve and its linkages with global value chains

Author

Listed:
  • Sakshi AGGARWAL

    (Indian Institute of Foreign Trade, India.)

Abstract

The concept and logic of ‘smile curve’ in the context of global value chains has gained importance in recent time period and discussed at the individual firm level, but rarely identified and investigated at the sectoral level using real data for cross-country analysis. Using TIVA database for 2001 and 2011 time period, several conceptual value chain are investigated including exports of Base Metals, Computer Electronics, Electrical Machinery and Transportation equipment’s in Asian Economies. This paper focuses an idea to measure both the strength and linkages between producers and consumers of global value chain. The identified smile curve provides a very intuitive understanding of the roles played by different countries in various sectors and helps in identifying the benefits gained by them through their participation in global trade. The dynamics of structural upgrading and interactive growth via trade and investment within a hierarchy of countries is aligned with “flying-geese (FG)” theory of growth. The paper also gives emphasis on the role of Regional Comprehensive Economic Partnership in broadening economic integration.

Suggested Citation

  • Sakshi AGGARWAL, 2017. "Smile curve and its linkages with global value chains," Journal of Economics Bibliography, KSP Journals, vol. 4(3), pages 278-286, September.
    • Handle: RePEc:ksp:journ6:v:4:y:2017:i:3:p:278-286
    as

    Download full text from publisher

    File URL: http://www.kspjournals.org/index.php/JEB/article/download/1434/1429
    Download Restriction: no
    File URL: http://www.kspjournals.org/index.php/JEB/article/view/1434
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    2. Terutomo Ozawa, 2001. "The "Hidden" Side of the "Flying-Geese" Model of Catch-Up Growth: Japan's Dirigiste Institutional Setup and a Deepening Financial Morass," Economics Study Area Working Papers 20, East-West Center, Economics Study Area.
    3. Namchul Shin & Kenneth L. Kraemer & Jason Dedrick, 2012. "Value Capture in the Global Electronics Industry: Empirical Evidence for the “Smiling Curve” Concept," Industry and Innovation, Taylor & Francis Journals, vol. 19(2), pages 89-107, February.
    4. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    5. Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
    6. Przemyslaw Kowalski & Javier Lopez Gonzalez & Alexandros Ragoussis & Cristian Ugarte, 2015. "Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies," OECD Trade Policy Papers 179, OECD Publishing.
    7. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    8. Sushil Kumar & Shahid Ahmed, 2015. "Gravity Model by Panel Data Approach," Foreign Trade Review, , vol. 50(4), pages 233-249, November.
    9. Ozawa, Terutomo, 2001. "The "hidden" side of the "flying-geese" catch-up model: Japan's dirigiste institutional setup and a deepening financial morass," Journal of Asian Economics, Elsevier, vol. 12(4), pages 471-491.
    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. Aggarwal, Sakshi, 2023. "The empirical measurement and determinants of intra-industry trade for a developing country," MPRA Paper 117112, University Library of Munich, Germany.
    2. Aggarwal, Sakshi, 2023. "LSTM based Anomaly Detection in Time Series for United States exports and imports," MPRA Paper 117149, University Library of Munich, Germany.
    3. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Position in global value chains and wages in Central and Eastern European countries," European Journal of Industrial Relations, , vol. 28(2), pages 211-230, June.
    4. Aggarwal, Sakshi, 2023. "Global assessment of climate change and trade on food security," MPRA Paper 117152, University Library of Munich, Germany.
    5. Sukhia, Jyoti, 2024. "India’s look east policy: Its evolution, challenges and prospects," MPRA Paper 120384, University Library of Munich, Germany.
    6. Aggarwal, Sakshi, 2023. "Machine Learning algorithms, perspectives, and real-world application: Empirical evidence from United States trade data," MPRA Paper 116579, University Library of Munich, Germany.
    7. Halit Yanikkaya & Abdullah Altun & Pınar Tat, 2023. "Once again “smile curve”: Is chain upgrading possible?," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 62-88, February.
    8. Piriya Pholphirul & Teerawat Charoenrat & Akkaranai Kwanyou & Pungpond Rukumnuaykit & Kitisak Srijamdee, 2024. "Measuring Smiling Curves in Community Enterprises: Evidence from the One Tambon One Product Entrepreneurship Programme in Border Thailand," Global Business Review, International Management Institute, vol. 25(2), pages 349-376, April.
    9. Gupta, Ashish, 2024. "Impact of innovation on employment: A review of literature," MPRA Paper 120383, University Library of Munich, Germany.

    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. Bo Meng & Ming Ye & Shang‐Jin Wei, 2020. "Measuring Smile Curves in Global Value Chains," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 988-1016, October.
    2. ye, ming, 2016. "Trace the goods and value-added route in exports," MPRA Paper 73476, University Library of Munich, Germany.
    3. Meng, Bo & Ye, Ming, 2022. "Smile curves in global value chains: Foreign- vs. domestic-owned firms; the U.S. vs. China," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 15-29.
    4. Francisco Moris, 2018. "Intangibles Trade and MNEs: Supply-Chain Trade in R&D Services and Innovative Subsidiaries," Journal of Industry, Competition and Trade, Springer, vol. 18(3), pages 349-371, September.
    5. Cecilia Jona-Lasinio & Valentina Meliciana, 2019. "Global Value Chains and Productivity Growth: Does Intangible Capital Matter?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 36, pages 53-78, Spring.
    6. Cecilia Jona Lasinio & Stefano Manzocchi & Valentina Meliciani, 2017. "Knowledge Based Capital and Value Creation in Global Supply Chains," Working Papers LuissLab 17134, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    7. Wannaphong Durongkaveroj, 2022. "Employment effects of joining global production networks: Does domestic value added matter?," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1269-1285, August.
    8. Dennis J. Snower & Alessio J. G. Brown & Christian Merkl, 2009. "Globalization and the Welfare State: A Review of Hans-Werner Sinn's Can Germany Be Saved?," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 136-158, March.
    9. Alyson C. Ma & Ari Van Assche, 2012. "Is East Asia's Economic Fate Chained to the West?," CIRANO Working Papers 2012s-11, CIRANO.
    10. Logan T Lewis & Ryan Monarch & Michael Sposi & Jing Zhang, 2022. "Structural Change and Global Trade," Journal of the European Economic Association, European Economic Association, vol. 20(1), pages 476-512.
    11. Cecilia Jona Lasinio & Stefano Manzocchi & Valentina Meliciani, 2016. "Intangible Assets and Participation in Global Value Chains: An Analysis on a Sample of European Countries," Working Papers LuissLab 16129, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    12. Yoshinori Kurokawa, 2011. "Variety-skill complementarity: a simple resolution of the trade-wage inequality anomaly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 297-325, February.
    13. Bernhofen, Daniel M. & El-Sahli, Zouheir & Kneller, Richard, 2016. "Estimating the effects of the container revolution on world trade," Journal of International Economics, Elsevier, vol. 98(C), pages 36-50.
    14. Tri WIDODO & Diyah PUTRIANI, 2011. "RMB Devaluation and Asean5 Countries’ Exports to the US: Complementary or Substitute?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 8, pages 169-184, December.
    15. Hayter, Susan., 2005. "The social dimension of global production systems : a review of the issues," ILO Working Papers 993749973402676, International Labour Organization.
    16. Hea-Jung Hyun & Jung Hur, 2014. "Trade Openness and Vertical Structure: Evidence From Korean Firm-Level Data," Open Economies Review, Springer, vol. 25(4), pages 701-720, September.
    17. Antonia Lopez Villavicencio & Valérie Mignon, 2018. "Do global value chains amplify global imbalances?," Working Papers hal-04141687, HAL.
    18. Mika Saito, 2004. "Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 1097-1117, November.
    19. Mary Amiti & Shang-Jin Wei, 2005. "Fear of service outsourcing: is it justified? [‘Location of vertically linked industries: agglomeration versus comparative advantage’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(42), pages 308-347.
    20. Ito, Tadashi & Vézina, Pierre-Louis, 2016. "Production fragmentation, upstreamness, and value added: Evidence from Factory Asia 1990–2005," Journal of the Japanese and International Economies, Elsevier, vol. 42(C), pages 1-9.

    More about this item

    Keywords

    Economic integration; Fragmentation; Globalization.;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    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:ksp:journ6:v:4:y:2017:i:3:p:278-286. 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: Bilal KARGI (email available below). General contact details of provider: http://www.kspjournals.org .

    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.