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Local Firms in Latecomer Developing Countries amidst China's Rise -The case of Vietnam's motorcycle industry-

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  • Fujita, Mai

Abstract

This paper examines the impact of China's recent rise on the development of local firms in latecomer developing countries. Based on a detailed analysis of Vietnam's motorcycle industry, the paper argues that China's impact may go beyond what a trade analysis suggests. Indeed, China's rise induced a dynamic transformation in the structure of value chains within Vietnam's motorcycle industry, bringing about far-reaching consequences on the development and upgrading trajectories of local firms. The implications of the case study for the wider "global value chain" approach is also discussed.

Suggested Citation

  • Fujita, Mai, 2007. "Local Firms in Latecomer Developing Countries amidst China's Rise -The case of Vietnam's motorcycle industry-," IDE Discussion Papers 97, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper97
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38070&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2007
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    References listed on IDEAS

    as
    1. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
    2. Melanie Beresford & Dang Phong, 2000. "Economic Transition in Vietnam," Books, Edward Elgar Publishing, number 2291.
    3. Palpacuer, Florence & Gibbon, Peter & Thomsen, Lotte, 2005. "New Challenges for Developing Country Suppliers in Global Clothing Chains: A Comparative European Perspective," World Development, Elsevier, vol. 33(3), pages 409-430, March.
    4. Lemoine, Francoise & Unal-Kesenci, Deniz, 2004. "Assembly Trade and Technology Transfer: The Case of China," World Development, Elsevier, vol. 32(5), pages 829-850, May.
    5. repec:bla:apacel:v:20:y:2006:i::p:40-56 is not listed on IDEAS
    6. Yongzheng Yang, 2006. "China's Integration into the World Economy: implications for developing countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 20(1), pages 40-56, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Fujita, Mai, 2008. "Value Chain Dynamics and Growth of Local Firms:The Case of Motorcycle Industry in Vietnam," IDE Discussion Papers 161, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Global value chain; Motorcycle industry; Vietnam; China; Upgrading; Motorcycles; 国際価値連鎖; 二輪車産業; ベトナム; 中国; 高度化; オートバイ;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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