Search

Asian Perspectives Global Issues

Search

Working Paper: Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going

Working Paper: Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going

Posted on Sunday, July 15, 2012

Richard Baldwin looks at why global supply chains (GSCs) matter, the economics of their unbundling, and their implications for policy.

Global supply chains have transformed the world. They revolutionized development options facing poor nations - now they can join supply chains rather than having to invest decades in building their own. Offshoring of labor-intensive manufacturing stages and the attendant international mobility of technology launched era-defining growth in emerging markets - a change that fosters and is fostered by domestic policy reform. Historic income gaps are narrowing as the North de-industrializes and the South industrializes - a reversal-of-fortunes that constitutes perhaps the most momentous global economic change in the last 100 years.

Global supply chains, however, are themselves rapidly evolving. The change is in part due to their own impact (income and wage convergence) and in part due to rapid technological innovations in communication technology, computer integrated manufacturing, 3D printing, etc.

This paper looks at why global supply chains (GSCs) matter, the economics of their unbundling, and their implications for policy. It finishes with a discussion of factors affecting the future of global supply chains. The paper begins by putting global supply chains into historical perspective.

The views expressed in this article are the author's own and do not necessarily reflect Fung Global Institute's editorial policy.


Asia Global Institute

Privacy Policy | Terms of Use | Copyright © 2022

Website by Roojai