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Upgrading in Global Value Chains: Analytical Framework

In: The Challenges of Late Industrialization

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  • Seishi Kimura

Abstract

This chapter develops the analytical framework for understanding how and why a latecomer firm in a global industry – particularly, the commercial aircraft industry – could upgrade its status as a dependent firm in a GVC. In the preceding chapter, we tried to show that the recent global business transformations have opened the ‘window of opportunity’ for the upgrading firm-based late industrialization (FLI) strategy. More specifically, by taking advantage of the globalization of the intermediate goods market, a latecomer firm might be able to incrementally enlarge the scale and scope of its supplier activities. In so doing, the latecomer firm could in turn generate and capture a higher value-added role and consequentially stronger bargaining power within the GVC, and ultimately to contribute to the overall industrial development at national level – that is, achieving FLI.

Suggested Citation

  • Seishi Kimura, 2007. "Upgrading in Global Value Chains: Analytical Framework," Palgrave Macmillan Books, in: The Challenges of Late Industrialization, chapter 4, pages 79-110, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62763-5_4
    DOI: 10.1057/9780230627635_4
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