scholarly journals SMEs’ competitiveness and international trade in the era of Global Value Chains (GVCs) in Tanzania: An assessment and future challenges

2021 ◽  
Vol 5 (1) ◽  
pp. e325
Author(s):  
Francis Lwesya
Keyword(s):  
International Trade ◽  
Small And Medium Enterprises ◽  
Trade Openness ◽  
Global Value Chains ◽  
Economic Transformation ◽  
Value Chains ◽  
Trade Policies ◽  
African Countries ◽  
Trading Systems ◽  
Medium Enterprises

International trade continues to play a crucial role in economic transformation in African countries. The rise of Global Value Chains (GVCs) presents opportunities through which international trade can be effectively conducted. GVCs facilitate organization of trade, international production and investment by locating different stages of production process across varied countries. This presents opportunities to integrate Small and Medium Enterprises (SMEs) into global trading systems but also may generate challenges particularly to resource constrained SMEs. Reviewing the challenges for the participation in international trade and possible integration into GVCs by Tanzania’s SMEs, the results show that the major challenges for SMEs internationalization are international marketing related constraints and global competition (69%), supply side constraints (56%), unfriendly investment climate (50%) and financial constraints (37.5%). As such, the role of trade policies remains critical in mitigating some of these challenges through formulating friendly legal and regulatory frameworks, enhancing SMEs productivity by building their managerial and technical capacities, minimizing trade costs, and increasing trade openness. However, given the current global, regional and domestic developments in Tanzania, trade policies need review so as to respond to the changing global trade landscape but also promote policy harmony, coherence and complementarities among varying implementing institutions, deficiency of which is debilitating policy implementation at present

Anatomizing India’s Presence in Automotive Global Value Chains

2021 ◽  
pp. 001573252110399
Author(s):  
Ankita Dash ◽  
Rupa Chanda
Keyword(s):  
State Government ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Principal Component ◽  
Global Value Chains ◽  
Value Chains ◽  
Firm Level ◽  
Jel Codes ◽  
Potential Factors ◽  
Medium Enterprises

Global value chains (GVCs) are the modus operandi of contemporary international trade and production. However, the operational underpinnings of what facilitates or hinders participation of firms in their respective sectoral GVCs are surprisingly understudied. This article attempts to discover the potential factors—ranging from regulatory, institutional, technological, trade-related and financial to sectoral, and input-related elements—affecting GVC participation of automotive firms in India. A firm-level field survey was undertaken to better understand firms’ perceptions regarding these factors. The findings were analysed using principal component analysis (PCA) and partial least squares structural equation modelling (PLS-SEM), which revealed that certain policies such as state government initiatives and the Competition Act, as well as trade facilitation measures like standardisation of procedural requirements and trade agreements were the most significant factors aiding firms’ participation in automotive GVCs, while institutional, technological and input-related aspects were deterrents to such participation. Our findings have important implications for policymaking in the country for encouraging greater GVC participation of firms, especially small and medium enterprises. JEL Codes: F14, F6

scholarly journals Financial Constraints and Global Value Chains Participation of Indian MSMEs

2020 ◽  
Vol 68 (1) ◽  
pp. 118-121
Author(s):  
Ketan Reddy
Keyword(s):  
Value Chain ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Global Value Chains ◽  
Major Obstacle ◽  
Value Chains ◽  
Global Value Chain ◽  
Policy Initiatives ◽  
Medium Enterprises ◽  
Medium Firms

This brief note highlights the importance of micro, small, and medium enterprises in India and the gains associated with the global value chain (GVC) participation for small and medium firms. The note also sheds light upon financial constraints as a major obstacle faced by these firms in their decision to participate in GVCs. The stagnancy in Indian manufacturing and the potential that GVC holds for the country, especially in line with the policy initiatives of Make in India, makes this a very pivotal area of research, and this research note aims to promote more research related to GVCs in India.

scholarly journals Trade Openness and the Development of Informal Economy in Enugu State, Nigeria

2021 ◽  
pp. 126-134
Author(s):  
Idoko Cordelia Ozoemena ◽  
Ohabuenyi Jonas ◽  
Ozor Adanne Chioma
Keyword(s):  
Informal Economy ◽  
International Political Economy ◽  
Small And Medium Enterprises ◽  
Relevant Literature ◽  
Trade Openness ◽  
Small Scale ◽  
Trade Policies ◽  
General Decline ◽  
Enugu State ◽  
Medium Enterprises

This study examines the neoliberal thesis which contends that trade openness could support the economic recuperation and development of the peripheral states. Particularly, it reviews the current trade regimes in Nigeria with a view to understanding how they impacted the livelihood of informal economy operators in Enugu state. The study argues that the dismantling of Nigeria’s territorial borders through various trade policies of government negates the development of the informal economy in Enugu state by stifling the growth of small and medium enterprises (SMES) and leading to a general decline in the income and wellbeing of small scale business operators. It notes that trade openness is a ploy by the western capitalist states to perpetuate their dominance in the international political economy to the detriment of peripheral states, whose productive forces are still at a rudimentary stage. The theoretical foundation of the study was situated within the prismatic compass of Dependency theory while triangulation of data, involving review of official documents and other relevant literature as well as the use of questionnaire was deployed in this study. From the findings, the study recommends that Nigeria should reappraise its trade policies to stimulate the development of the informal sector and enhance the wellbeing of the indigenous entrepreneurs.

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