africa

Yale Center for the Study of Globalization
to help capacity building and upgrading, including workforce development. Investment
agreements play a key role during this phase, and a government needs to satisfy
itself that the exploitation of local resources by foreign companies will have enough
positive spillover effects for the local economy. In open markets, substitution will take
place only if the local suppliers become competitive, and therefore accompanying
policies should also contribute to improving the business environment.
In phase 3, it is important to reduce local suppliers’ dependence on foreign investors.
Such diversification could be achieved through the development of local demand for
services, including through public procurement or through raising local standards to
match supply with demand. Given the limits of such policies (income), it is important
to promote and facilitate exports. 7
References
Bair, J., and G. Gereffi, 2001. “Local Clusters in Global Value Chains: The Causes
and Consequences of Export Dynamism in Torreon’s Blue Jeans Industry,”
World Development 29(11): 1885-1903.
Cattaneo, O., and S. Miroudot, 2015, forthcoming. “From Global Value Chains to
Global Development Chains: An Analysis of Recent Changes in Trade Patterns
and Development Paradigms.” In E. Zedillo and B. Hoekman (eds.), 21 st
Century Trade Policy: Back to the Past? Volume in honor of Professor Patrick
Messerlin. New Haven, CT: Yale University Press.
Cattaneo, O., G. Gereffi, S. Miroudot, and D. Taglioni, 2013. “Joining, Upgrading,
and Being Competitive in Global Value Chains.” Policy Research Working
Paper No. 6406. Washington, DC: World Bank.
Escaith, H., N. Lindinberg, and S. Miroudot, 2010. “Global Value Chains and the
Crisis: Reshaping Trade Elasticity?” In O. Cattaneo, G. Gereffi, and C. Staritz
(eds.) Global Value Chains in a Postcrisis World. A Development Perspective.
Washington, DC: World Bank, pp. 73-124.
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