The Impact of Operating in Multiple Value Chains for Upgrading: The Case of the Brazilian Furniture and Footwear Industries

Lizbeth Navas-Alemán

World Development, 2011, vol. 39, issue 8, 1386-1397

Abstract: Summary Exporting has been upheld as the "Golden Standard" for industrial upgrading. However, research using the value chain approach shows that upgrading for developing country firms is often limited to the lowest value-added activities. Based on comparative research carried out in two Brazilian clusters (furniture and footwear industries), this paper shows that domestic and regional value chains can offer greater upgrading opportunities, providing space for activities of higher value-added, better remunerated and difficult to replicate, notably design, marketing, and branding. Moreover, this study highlights that many firms simultaneously serve multiple value chains (multichain) and that multichain firms have better upgrading prospects than those primarily exporting via Global Value Chains.

Keywords: value; chains; Brazil; South; America; multichain; functional; upgrading (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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