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Technological Capabilties, Generating Value-added and Upgrading in Global Value Chains: Evidence from Developing Countries

A'lami, Mohammad Hossein | 2023

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 56271 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Miremadi, Iman; Madanizadeh, Ali
  7. Abstract:
  8. Today, global value chains(GVCs) have distributed the production of goods and services all over the world and have become the main part of global trade. GVCs provide developing countries with oppurtunities for engaging in economic activity and producing goods, without developing all the infrastructure needed for producing it yourself. but participating in GVCs also pose some challenges to developing countries. if developing countries do not enhance their ability for generating value-added, by losing the advantage of cheap labour over time, they will fall into the so-called "middle-income trap". therefore upgrading, with the broad definition of generating more value-added, should be targeted by the aforementioned countries participating in GVCs. there are different paths for upgrading, such as moving toward activities with more value-added, or trying to do the activity with same value-added more efficiently and specalize in it. among the many factors which determine the capacity of a country for generating value-added, one is of particular interest: technological capabilities. in thise research we have tried to study the effect of tehcnological capabilties on generating value-added and upgrading of developing countries, in their different trajectories of participation in GVCs. we have gathered the data of nearly 80 developing countries over a 20 year period starting from 1995 to 2015 and will try to answer our questions with it. our results show that as the participation of developing countries in manufacturing GVCs increases, the effect and significance ot technological capabilities also increases. and if these countries try to move toward high value-added activities and diverse value-chains, technological capabilites plays a crucial role in upgrading to this trajectory and sustaining the generation of value-added in it
  9. Keywords:
  10. Global Value Chain ; Technological Capabilities ; National Innovation System ; Upgrading ; Developing Countries ; Value Added

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