Menu Expand
  1. Journals
  2. Economics, Finance, Business & Management
  3. Vierteljahrshefte zur Wirtschaftsforschung
  4. Vol. 89, Issue 3
  5. pp. 9–33

JOURNAL ARTICLE

Cite JOURNAL ARTICLE

Style
Dünhaupt, P., Herr, H. Trade, Global Value Chains and Development – What Role for National Development Banks?. Vierteljahrshefte zur Wirtschaftsforschung, 89(3), 9-33. https://doi.org/10.3790/vjh.89.3.9
Dünhaupt, Petra and Herr, Hansjörg "Trade, Global Value Chains and Development – What Role for National Development Banks?" Vierteljahrshefte zur Wirtschaftsforschung 89.3, , 9-33. https://doi.org/10.3790/vjh.89.3.9
Dünhaupt, Petra/Herr, Hansjörg: Trade, Global Value Chains and Development – What Role for National Development Banks?, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 89, iss. 3, 9-33, [online] https://doi.org/10.3790/vjh.89.3.9
Format
Download

Trade, Global Value Chains and Development – What Role for National Development Banks?

Dünhaupt, Petra | Herr, Hansjörg

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 89 (2020), Iss. 3 : pp. 9–33

4 Citations (CrossRef)

Read Now Download (PDF)

Additional Information

Article Details

Publisher Name
Duncker & Humblot
DOI
https://doi.org/10.3790/vjh.89.3.9
Language
English
Pages
25
Keywords

Author Details

Petra Dünhaupt, Hochschule für Wirtschaft und Recht (HWR) Berlin

  • Petra Dünhaupt, is a research associate at the Berlin School of Economics and Law in Germany. She works on issues of global value chains, development economics, financialization and income distribution. Most recently, she participated in the international and interdisciplinary research project “Global Value Chains – Economic and Social Upgrading” at the HWR Berlin, and the regional project “Core Labour Standards Plus (CLS+)”, initiated by the Friedrich Ebert Foundation Singapore. Petra Dünhaupt holds a PhD in Economics from the University of Oldenburg and a M.A. in International and Development Economics from the HTW Berlin.
  • Email
  • Search in Google Scholar

Hansjörg Herr, Hochschule für Wirtschaft und Recht (HWR) Berlin

  • Hansjörg Herr is a professor (retired) for Supranational Integration at the Berlin School of Economics and Law in Germany. He is an expert on the development of the international monetary system, European monetary integration, labour markets and development economics.
  • Email
  • Search in Google Scholar

Cited By

  1. Economic and Social Upgrading in Global Value Chains

    Global Value Chains—A Panacea for Development?

    Dünhaupt, Petra | Herr, Hansjörg

    2022

    https://doi.org/10.1007/978-3-030-87320-2_3 [Citations: 1]

  2. Nullwachstum

    Heine, Michael | Herr, Hansjörg

    PROKLA. Zeitschrift für kritische Sozialwissenschaft, Vol. 53 (2023), Iss. 210 P.171

    https://doi.org/10.32387/prokla.v53i210.2035 [Citations: 2]

  3. Economic and Social Upgrading in Global Value Chains

    Comparing National and Industry-Specific Trajectories of Economic and Social Upgrading as Well as Various Strategic Solutions

    Dünhaupt, Petra | Herr, Hansjörg | Mehl, Fabian | Teipen, Christina

    2022

    https://doi.org/10.1007/978-3-030-87320-2_20 [Citations: 1]

  4. THE INFLUENCE OF SYSTEMICALLY IMPORTANT BANKS ON ENSURING THE FINANCIAL STABILITY OF KAZAKHSTAN

    Dalke, A. Yu. | Svyatov, S. A. | Ruziyeva, E. A.

    Central Asian Economic Review, Vol. (2023), Iss. 1 P.122

    https://doi.org/10.52821/2789-4401-2023-1-122-136 [Citations: 0]

References

  1. Amsden, Alice H. (2001): The Rise of the Rest: Challenges to the West from Late Industrializing Economies, Oxford: Oxford University Press.  Google Scholar
  2. Amsden, Alice H. (2009): Nationality of Firm Ownership in Developing Countries: Who Should ‘Crowd Out’” Whom in Imperfect Markets?, in: Cimoli, Mario; Dosi, Giovanni; Stiglitz, Joseph E. (eds.), Industrial Policy and Development: The Political Economy of Capabilities Accumulation, Oxford: Oxford University Press, 409–423.  Google Scholar
  3. Anner, Mark (2015): Stopping the Race to the Bottom: Challenges for Workers’ Rights in Supply Chains in Asia. FES Briefing Paper. Hanoi: FES Vietnam, December, Available at http://library.fes.de/pdf-files/iez/12321.pdf. Accessed 27 May 2020.  Google Scholar
  4. Anner, Mark (2020): Abandoned? The Impact of Covid-19 on Workers and Businesses at the Bottom of Global Garment Supply Chains, Center for Global Workers’ Rights, Research Report, PennState University.  Google Scholar
  5. Appunn, Kerstine, Yannick Haas, and Julian Wettengel (2020): Germany’s energy consumption and power mix in charts, Clean Energy Wire, https://www.cleanenergywire.org/factsheets/germanys-energy-consumption-and-power-mix-charts. Accessed 28 February 2020.  Google Scholar
  6. Baldwin, Richard (2011): Trade and Industrialisation after Globalisation’s 2nd Unbundling: How Building and Joining a Supply Chain are Different and Why it Matters, NBER Working Paper 17716; Available at http://siteresources.worldbank.org/INTRANETTRADE/Resources/Baldwin_NBER_Working_Paper_17716.pdf. Accessed 5 June 2019.  Google Scholar
  7. Bannister, Geoffrey, Malin Gardberg, and Jarkko Turunen (2018): Dollarization and Financial Development, IMF Working Paper WP/18/200.  Google Scholar
  8. Bhagwati, Jagdish (1958): Immiserizing Growth: A Geometrical Note. Review of Economic Studies, 25, 201–205.  Google Scholar
  9. Chandler, Alfred D. (1990): Scale and Scope: The Dynamics of Industrial Capitalism, Cambridge: MA: Belknap Press.  Google Scholar
  10. Chang, Ha-Joon (2002): Kicking the Away the Ladder. Development Strategy under Historical Perspective, London: Anthem Press.  Google Scholar
  11. Cimoli, Mario, Giovanni Dosi, and Joseph E. Stiglitz (2009): The Future of Industrial Policy in the New Millennium: Towards a Knowledge Centred Development Agenda, in: Cimoli, Mario; Dosi, Giovanni; Stiglitz, Joseph E. (eds.), Industrial Policy and Development: The Political Economy of Capabilities Accumulation, Oxford: Oxford University Press, 541–560.  Google Scholar
  12. Cohen, Benjamin J. (1998): The Geography of Money, Ithaca: Cornell University Press.  Google Scholar
  13. Corrales, Juan-Sebastian, and Patrick Imam (2019): Financial Dollarization of Households and Firms: Does it Differ? IMF Working Paper WP/19/19.  Google Scholar
  14. Detzer, Daniel, Nina Dodig, Trevor Evans, Eckhard Hein, Hanjörg Herr, and Franz Pante(2017): The German Financial System and the Financial and Economic Crisis, Cham:Springer  Google Scholar
  15. Deutsche Bundesbank (2017): The role of banks, non- banks and the central bank in the money creation process, Monthly Report, Nr. 4, Frankfurt a.M.  Google Scholar
  16. Di Maio, Michelle (2009): Industrial Policy in Developing Countries: Historical Perspectives, in: Cimoli, Mario; Dosi, Giovanni; Stiglitz, Joseph E. (eds.), Industrial Policy and Development: The Political Economy of Capabilities Accumulation, Oxford: Oxford University Press, 107–143.  Google Scholar
  17. Dollar, David (2019): Executive Summary, in: Global Value Chain Development Report 2019, World Trade Organisation, Geneva, 1–8.  Google Scholar
  18. Dünhaupt, Petra, and Hansjörg Herr (2020a): Catching Up in a Time of Constraints – Industrial Policy under World Trade Organization Rules, Free Trade Agreements and Bilateral Investment Agreements, Friedrich Ebert Stiftung Singapore.  Google Scholar
  19. Dünhaupt, Petra, and Hansjörg Herr (2020b): Global Value Chains – A Ladder for Development? International Review of Applied Economics, forthcoming.  Google Scholar
  20. Eichengreen, Barry, Ricardo Hausmann, and Ugo Panizza (2007): Currency Mismatches, Debt Intolerance and Original Sin: Why They Are Not the Same and Why it Matters. Capital Controls and Capital Flows in Emerging Economies: Policies, Practices and Consequences, Chicago: University of Chicago Press, 121–170.  Google Scholar
  21. Feenstra, Robert C. (2010): Offshoring in the global economy. Microeconomic structure and macroeconomic implications, Cambridge: MIT Press.  Google Scholar
  22. Feenstra, Robert, Robert Inklaar, and Marcel Timmer (2015): The Next Generation of the Penn World Table, in: American Economic Review, 105(10), 3150–3182, available at https://www.ggdc.net/pwt. Accessed 27 May 2020.  Google Scholar
  23. Gereffi, Gary, John Humphrey, and Timothy Sturgeon (2005): The Governance of Global Value Chains. Review of International Political Economy, 12, 78–104.  Google Scholar
  24. Global Financial Integrity (2015): Financial Flows and Tax Havens: Combining to Limit the Lives of Billions of People, Norwegian School of Economics, Jawaharlal Nehru University, Instituto de Estudos Socioeconômicos, Nigerian Institute of Social and Economic Research.  Google Scholar
  25. Griffith-Jones, Stephany (2016): Development Banks and Their Key Roles, Discussion Paper, Analysis 59, Brot für die Welt.  Google Scholar
  26. Griffith-Jones, Stephany, and Giovanni Cozzi (2017): The Role of Development Banks – How they can promote Investment in Europe and Globally. In: Noman, Akbar and Stiglitz, Joseph (eds.): Efficiency, Finance, and Varieties of Industrial Policy – Guiding Resources, learning, and Technology for Sustained Growth, New York: Columbia University Press, 131–155.  Google Scholar
  27. Heckscher, Eli (1919): The Effect of Foreign Trade on the Distribution of Income. Ekonomisk Tidskrift, 497–512.  Google Scholar
  28. Herr, Hansjörg (1992): Geld, Währungswettbewerb und Währungssysteme, Frankfurt a. M.: Campus.  Google Scholar
  29. Herr, Hansjörg (2014): An Analytical Framework for the Post-Keynesian Macroeconomic Paradigm. Izmir Review of Social Sciences, 1 (2), 73–116.  Google Scholar
  30. Herr, Hansjörg (2019): Industrial Policy of Economic and Social Upgrading in Developing countries, Friedrich-Ebert Foundation Singapore, February.  Google Scholar
  31. Herr, Hansjörg, and Zeynep M. Nettekoven (2018): The Role of Small and Medium-Sized Enterprises in Development: What Can Be Learned from the German Experience?” Global Labour University Working Paper, No. 53, Geneva: Global Labour University. Trade, Global Value Chains and Development – What Role for National Development Banks?  Google Scholar
  32. Herr, Hansjörg, Cristina Teipen, Petra Dünhaupt, and Fabian Mehl (2020): Wirtschaftliche Entwicklung und Arbeitsbedingungen in globalen Wertschöpfungsketten, Working Paper Forschungsförderung, Nr. 175, Hans-Böckler Stiftung.  Google Scholar
  33. Hirschman, Albert O. (1958): The Strategy of Economic Development, New Haven: Yale University Press.  Google Scholar
  34. Humphrey, John, and Hubert Schmitz (2002): How Does Insertion in Global Value Chains Affects Upgrading in Industrial Clusters. Regional Studies, 36, 1017–1027.  Google Scholar
  35. Judson, Ruth (2017): The Death of Cash? Not So Fast: Demand for U.S. Currency at Home and Abroad, 1990–2016, International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 25–27 April 2017, Island of Mainau, Germany, Deutsche Bundesbank, Frankfurt a.M.  Google Scholar
  36. Keynes, John M. (1936): The General Theory of Employment, Interest and Money. Cambridge University Press: Cambridge.  Google Scholar
  37. Keynes, John M. (1937): The General Theory of Employment. Quarterly Journal of Economics, 51(2), 209–223.  Google Scholar
  38. KfW (2020): KFW. Available at https://www.kfw.de/kfw.de-2.html. Accessed 27 May 2020.  Google Scholar
  39. Korinek, Anton, and Joseph E. Stiglitz (2017): Artificial intelligence and its implications for income distribution and unemployment, NBER Working Paper Series, No. 24174.  Google Scholar
  40. Krugman, Paul (1981). Trade, Accumulation, and Uneven Development. Journal of Development Economics, 8, 149–161.  Google Scholar
  41. Lewis, W. Arthur (1954): Economic Development with Unlimited Supplies of Labour. Manchester School or Economics and Social Studies, 10, 139–191.  Google Scholar
  42. List, Friedrich (1841) (references from the English edition 1909): The National System of Political Economy, trans. Sampson S. Lloyd, London: Longmans, Green and Co.  Google Scholar
  43. Low, Patrick (2013): The role of services in global value chains, in: Elms, Deborah K.; Low, Patrick (eds.), Global value chains in a changing world, World Trade Organisation, Geneva, 61–81.  Google Scholar
  44. Marshall, Alfred (1920): Principles of Economics, London: McMillan.  Google Scholar
  45. Milberg, William, and Deborah Winkler (2013): Outsourcing Economics. Global Value Chains in Capitalist Development, Cambridge: University Press.  Google Scholar
  46. Naqvi, Natalya, Anne Hennow, and Ha-Joon Chang (2018): Kicking Away the Financial Ladder? German Development Banking Under Economic Globalisation. Review of International Political Economy, 25, 672–698.  Google Scholar
  47. Nayyar, Deepak (2017): Development Banks and Industrial Finance – The Indian Experience and its Lessons. In: Noman, Akbar and Stiglitz, Joseph (eds.): Efficiency, Finance, and Varieties of Industrial Policy – Guiding Resources, learning, and Technology for Sustained Growth, New York: Columbia University Press, 191–221.  Google Scholar
  48. OECD (2013): Interconnected Economies: Benefiting from Global Value Chains. Paris: OECD Publishing.  Google Scholar
  49. OECD (2019): Arrangement on Officially Supported Export Credits. Paris. Available at https://www.oecd.org/trade/topics/export-credits/arrangement-and-sector-understandings/. Accessed 6 December 2019.  Google Scholar
  50. Ohlin, Bertil (1933): Interregional and International Trade, Cambridge: Harvard University Press.  Google Scholar
  51. Pareto, Vilfredo (1906): Manual of Political Economy, Oxford: Oxford University Press.  Google Scholar
  52. Prebisch, Raúl (1950): The Economic Development of Latin America and Its Principal Problems. Lake Success, NY: United Nations Department of Economic Affairs.  Google Scholar
  53. Raj-Reichert, Gale (2019): Global Value Chains, Contract Manufacturers, and the Middle Income Trap: The Electronics Industry in Malaysia. Journal of Development Studies, 56, 698–716.  Google Scholar
  54. Ricardo, David (1817): On the Principles of Political Economy and Taxation, London: John Murray.  Google Scholar
  55. Riese, Hajo (1986): Theorie der Inflation, Tübingen: Mohr.  Google Scholar
  56. Rodrik, Dani (2004): Industrial Policy for the Twenty-First Century. Cambridge MA: Harvard University, John F. Kennedy School of Governance, 2004.  Google Scholar
  57. Rodrik, Dani (2008): Industrial Policy: Don’t Ask Why, Ask How. Middle East Development Journal, 1, 1–29.  Google Scholar
  58. Rodrik, Dani (2018): Straight Talk on Trade, Ideas for a Sane World Economy. Princeton: Princeton University Press.  Google Scholar
  59. Rodrik, Dani (2018a): New Technologies, Global Value Chains, and the Developing Economies. Pathways for Prosperity Commission Background Paper Series, no. 1, Oxford, UK.  Google Scholar
  60. Rosenberg, Richard, Scott Gaul, William Ford, and Olga Tomilova (2013): Microcredit Interest Rates and Their Determinants 2004–2011, CGAP, MIX, and KfW: Washington.  Google Scholar
  61. Schumpeter, Joseph (1911) (references from the English edition 1983): The Theory of Economic Development, with a new introduction by John. E. Elliott, New York: Routledge.  Google Scholar
  62. Shapiro, Helen (2007): Industrial Policy and Growth, United Nations Department of Economic and Social Affairs, DESA Working Paper No. 53.  Google Scholar
  63. Shih, Stan (1996): Me-Too is Not My Style: Challenge Difficulties, Breakthrough Bottlenecks, Create Values, The Acer Foundation, Taipei.  Google Scholar
  64. Shimada, Go (2017): Inside the Black Box of Japan’s Institution for industrial Policy – An Institutional Analysis of the Development Bank, Private Sector, and Labor, In: Noman, Akbar and Stiglitz, Joseph (eds.): Efficiency, Finance, and Varieties of Industrial Policy – Guiding Resources, learning, and Technology for Sustained Growth, New York: Columbia University Press, 156–190.  Google Scholar
  65. Singer, Hans (1949): Economic Progress in Under-Developed Countries. Social Research, 16, 236−266.  Google Scholar
  66. Stiglitz, Joseph, E. (1996): Some Lessons from the East Asian Miracle. World Bank Research Observer, 11, 151–177.  Google Scholar
  67. Stiglitz, Joseph E., and Bruce Greenwald (2003): Towards a New Paradigm in Monetary Economics, Cambridge: Cambridge University Press.  Google Scholar
  68. Stiglitz, Joseph E., and Marilou Uy (1996): Financial Markets, Public Policy, and the East Asian Miracle. The World Bank Observer, 1, 249–276.  Google Scholar
  69. Stiglitz, Joseph E., and Andrew Weiss (1981): Credit Rationing in Markets with Imperfect Information. The American Economic Review, 71 (3): 393–410.  Google Scholar
  70. Stolper, Wolfgang F., and Paul A. Samuelson (1941): Protection and Real Wages. The Review of Economic Studies, 9 (1), 58–73.  Google Scholar
  71. Ströh de Martínez, Christiane (2011): Finance for the poor in demand: Who uses microfinance and why?. IPE Working Paper 10/2011.  Google Scholar
  72. UNCTAD (The United Nations Conference on Trade and Development) (2017): The Role of Development Banks in Promoting Growth and Sustainable Development in the South. United Nations, New York and Geneva.  Google Scholar
  73. Wolfson, Martin H. (1996): A Post Keynesian Theory of Credit Rationing. Journal of Post Keynesian Economics, 18(3), 443–470.  Google Scholar
  74. World Bank (2020): Poverty, available at https://www.worldbank.org/en/topic/poverty/overview. Accessed 06 May 2020.  Google Scholar
  75. World Bank (2020a): Data, https://data.worldbank.org/indicator/.  Google Scholar
  76. World Bank (2020b): International Debt Statistic, http://datatopics.worldbank.org/debt/ids/.  Google Scholar
  77. World Trade Organization (2019): Agreement on subsidies and countervailing measures. Available at https://www.wto.org/english/docs_e/legal_e/24-scm.pdf. Accessed 21 April 2019.  Google Scholar

Abstract

Summary: In this article we discuss the need for industrial policy and role of development banks for economic development. The catching-up of countries in the Global South to productivity levels and living standards of the Global North is the exception. There are two main economic explanations for this observation. First, developing countries are pushed to low-tech and labor-intensive productions and tasks in global value chains. This offers the advantage of easier industrialisation, but it does not automatically lead to productivity levels comparable with the Global North. Foreign direct investments only partially help to overcome this problem. Second, low trust in national currencies in the Global South leads to distorted financial markets which do not provide sufficient credit for investment. National development banks play a key role in facilitating the economic catching-up of the Global South as part of needed industrial policies. They can alleviate distortions in the financial system and at the same time support the transformation of the economy towards higher productivity and ecological transformation. We explain development bank policies by using the KfW as an example of an effective industrial policy.

Contact

Duncker & Humblot GmbH Carl-Heinrich-Becker-Weg 9 12165 Berlin, Deutschland T: +49 30 790006-0

Quick Navigation

2024 Duncker & Humblot GmbH

Powered by CloudPublish

We use cookies to ensure that you get the best experience on our website. Learn more about how we use cookies.