Catching-up in the global factory: Analysis and policy implications

Peter J. Buckley (), Roger Strange (), Marcel Timmer and Gaaitzen de Vries
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Peter J. Buckley: University of Leeds
Roger Strange: University of Sussex Business School, Jubilee Building, University of Sussex

Journal of International Business Policy, 2020, vol. 3, issue 2, No 1, 79-106

Abstract: Abstract MNEs shape the location of activities in the world economy, linking diverse regions in what has been called the global factory. This study portrays the evolution of incomes and employment in the global factory using a quantitative input–output approach. We find emerging economies forging ahead relative to advanced economies in income derived from fabrication activities, handling the physical transformation process of goods. In contrast, convergence in income derived from knowledge-intensive activities carried out in pre- and post-fabrication stages is much slower. We discuss possible barriers to catching-up and policy implications for emerging economies in developing innovation capabilities, stressing the pivotal role of MNEs.

Keywords: global factory; convergence; fabrication activities; knowledge-intensive activities; emerging economies (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (24)

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DOI: 10.1057/s42214-020-00047-9

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