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‘Manufacturers without factories’ and economic development in the Global South: India’s pharmaceutical firms

Author

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  • Yves-Marie Rault-Chodankar
  • Dinar Kale

Abstract

Global value chain/global production network studies have extensively documented the role of lead firms from the Global North in economic development in the Global South, including as ‘manufacturers without factories’ (MWFs). However, the role of local firms in sourcing from suppliers has been overlooked. In this article, we report the findings of a qualitative study and demonstrate that the local MWFs helped establish India as the leading supplier of pharmaceuticals worldwide and in the Global South. We show how the different types of local MWFs (‘propagandists’, ‘pioneers’, ‘connectors’ and ‘adaptors’) impact the strategic coupling, industrial upgrading and governance in South–South value chains and contribute to regional economic development.

Suggested Citation

  • Yves-Marie Rault-Chodankar & Dinar Kale, 2023. "‘Manufacturers without factories’ and economic development in the Global South: India’s pharmaceutical firms," Journal of Economic Geography, Oxford University Press, vol. 23(2), pages 319-341.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:2:p:319-341.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbac013
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    More about this item

    Keywords

    Economic Development; Production Networks; Value Chains; Manufacturers Without Factories; Global South; India; Pharmaceuticals;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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