Enhancing SME Participation in Global Value Chains: Determinants, Challenges, and Policy Recommendations
Promoting the development and internationalization of SMEs can increase productivity and competitiveness for more inclusive economic growth.
Achieving inclusive economic growth is one of the most pressing issues on the policy agenda for the 21st century. Promoting the development and internationalization of small and medium-sized enterprises (SMEs) is vital, given their economic prominence in many countries, and can increase productivity and competitiveness for more inclusive economic growth. An effective way for SMEs to internationalize their activities is to participate in global value chains (GVCs), which link firms across countries through international trade, enabling those with limited resources and capabilities to take up specific tasks or processes within a GVC, rather than having to engage in the entire production system.
This volume examines the factors that determine SMEs’ participation in GVCs, identifies the obstacles faced, and provides recommendations for SMEs and governments for facilitating GVC participation by analyzing 10 Asian countries with diverse characteristics. The findings and discussions show that for SMEs, boosting technological capability and attracting foreign investment are crucial. For governments, priority areas include enhancing the quality of education, infrastructure, logistics, and governance, increasing the availability of financial and technical assistance, disseminating information on foreign markets, and establishing an open environment for trade and foreign direct investment.
- 1. Introduction and Summary by Shujiro Urata
- 2. The Determinants of Participation in Global Value Chains: A Cross-Country, Firm-Level Analysis by Shujiro Urata and Youngmin Baek
- 3. What Matters for the Global Value Chain Entry and Exit of Manufacturing SMEs in the Philippines? by Adrian R. Mendoza
- 4. Human Capital and Participation in Global Value Chains: Evidence from SMEs in Indonesia by Vutha Hing, Shandre Thangavelu, and Dionisius A. Narjoko
- 5. Trade, Global Value Chains, and SMEs in Thailand: A Firm-Level Panel Analysis by Upalat Korwatanasakul and Sasiwimon Warunsiri Paweenawat
- 6. Firm Size and Participation in the International Economy: Evidence from Bangladesh by Ben Shepherd
- 7. Driving SME Participation in Global Value Chains: Evidence from India by Ketan Reddy and Subash Sasidharan
- 8. Determinants of the Export Performance of SMEs in the Kyrgyz Republic by Kamalbek Karymshakov
- 9. Global Value Chain Participation and Firms’ Innovations: Evidence from SMEs in Viet Nam by Duc Anh Dang and Vuong Anh Dang
- 10. Impact of Global Value Chains on the Performance of SMEs: Evidence from Sri Lanka by N.P. Ravindra Deyshappriya and B.C.H. Maduwanthi
- 11. Connecting Cambodia’s SMEs to Regional Value Chains: “Bridging Gaps” and “Missing Links” by Kha Sok, Runsinarith Phim, Socheat Keo, and Veara Kim
- 12. SMEs in Nepal: Examining Constraints on Exporting by Paras Kharel and Kshitiz Dahal
- 13. Leveraging the Participation of SMEs in Global Value Chains of the Automotive Industry: Insights from Maruti Suzuki India Limited by Falendra Kumar Sudan
- 14. Impacts of Involvement in the Global Value Chain on Coffee Farmers in Indonesia: Case Study of Margamulya Coffee Producer Cooperative and Mitra Malabar Cooperative, Bandung, Indonesia by Amzul Rifin and Dahlia Nauly