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'Learning by importing' in global value chains: upgrading and South-South strategies in the Ugandan pharmaceutical industry

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  • Stine Jessen Haakonsson

Abstract

Drawing on global value chain analysis, this article discusses the possibilities for upgrading in a domestically oriented import-dependent industry. The pharmaceutical industry in Uganda consists of a large number of importers, nine of which have upgraded into assembly and four a step further into manufacturing. The industry upgrades by a process of 'learning by importing'. Although not engaged with global buyers, pharmaceutical producers in Uganda are tied into the global pharmaceutical value chain by international linkages with their suppliers, mainly in India, from whom they access technology and intermediates for production. Hence, this industry is based on South-South networks for production of low-value pharmaceutical products. With the globalisation of the pharmaceutical industry, an increasing number of global lead firms are ceasing to manufacture these products. This study illustrates an alternative form of industrialisation and upgrading that has not been adequately considered in the development of the African pharmaceutical industry.

Suggested Citation

  • Stine Jessen Haakonsson, 2009. "'Learning by importing' in global value chains: upgrading and South-South strategies in the Ugandan pharmaceutical industry," Development Southern Africa, Taylor & Francis Journals, vol. 26(3), pages 499-516.
    • Handle: RePEc:taf:deveza:v:26:y:2009:i:3:p:499-516
    DOI: 10.1080/03768350903086861
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    References listed on IDEAS

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    1. Mr. Anupam Basu & Mr. Krishna Srinivasan, 2002. "Foreign Direct Investment in Africa—Some Case Studies," IMF Working Papers 2002/061, International Monetary Fund.
    2. Ritva Reinikka & Paul Collier, 2001. "Uganda's Recovery : The Role of Farms, Firms, and Government," World Bank Publications - Books, The World Bank Group, number 13850.
    3. Sanjaya Lall, 1987. "Learning to Industrialize," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-18798-0, December.
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    1. Byeongho Lim & Jeongho Yoo & Kyoungseo Hong & Inkyo Cheong, 2021. "Impacts of Reverse Global Value Chain (GVC) Factors on Global Trade and Energy Market," Energies, MDPI, vol. 14(12), pages 1-17, June.
    2. De Marchi, Valentina & Giuliani, Elisa & Rabellotti, Roberta, 2015. "Local innovation and global value chains in developing countries," MERIT Working Papers 2015-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Ramani, Shyama V. & Urias, Eduardo, 2018. "When access to drugs meets catch-up: Insights from the use of CL threats to improve access to ARV drugs in Brazil," Research Policy, Elsevier, vol. 47(8), pages 1538-1552.
    4. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    5. Ulrich Elmer Hansen & Padmasai Lakshmi Bhamidipati & Mathilde Brix Pedersen & Ivan Nygaard & Hope Nyambura Njoroge, 2023. "Linking business strategies with upgrading pathways in global value chains: Insights from the Kenyan solar market," Development Policy Review, Overseas Development Institute, vol. 41(2), March.
    6. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.

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