The Globalization and Business Performance of Corporate Value Chain

Taek-Ho Kwon,Hong-Gyue Park,Hyuk-Soo Cho 한국무역학회 2021 Journal of Korea trade Vol.25 No.3

Purpose - This paper empirically investigates the relationship between the corporate value chain and performance of non- financial businesses of South Korean stock market companies. It aims to explore the evidence that can be used to infer the relationship between value chains and corporate performance in the case of firms forming a value chain with other companies with the means of an equity investment or a special business relationship. Design/methodology - Non-financial corporations listed from 2011 to 2017 on the securities market of South Korea are analyzed. The data used for analysis are found for transactions with the related party by year for all the corporations of non-financial industries in the securities market. Multiple analysis attempts are conducted including the relationship between the value chain and productivity, corporate value, risk-adjusted corporate value, and mediation effects of productivity. The empirical model employs sixteen variables including the value chain index which identifies its impact on various aspects of business performances. Findings - The results of this study clearly supports the phenomenon that corporate productivity and value are enhanced when the corporation expands its value chain established with domestic related firms and overseas companies. Such a positive effect is statistically significant even after the possible risk factors that accompany the expansion of value chain were considered, and productivity plays the role as a medicating variable in the effect of the value chain on the corporation values. Originality/value - The findings of this study confirms that domestic companies’ expansion of their value chain centered on the related firms overseas that helped them in terms of the maximization of their productivity and corporate values. This study shows that Korean government’s policy on expanding the corporate GVC can enhance the productivity and value of firms. The expansion of value chain and its impact on business performance has not been explored thoroughly, although it is getting more and more important in the global trade operation.

A Review of Global Value Chain Research in Humanities and Social Sciences based on Knowledge Mapping

( Ding Yi ),( Tu Ruonan ),( Jang Seongho ) 한국비교경제학회 2023 비교경제연구 Vol.30 No.1

21세기 이후 국가 간 연결고리는 점점 더 밀접해지면서 이전에는 볼 수 없었던 국가간 무역 네트워크는 세계 곳곳으로 확대되었다. 글로벌가치사슬이 통신 및 물류 기술의 발전으로 확대됨에 따라 전통적인 완제품 무역은 점차 가공 무역으로 대체되고, 각 국가가 참여하는 생산네트워크는 국제무역의 핵심이 되었다. Poter(1985)가 가치사슬의 개념을 처음 제안한 이후 글로벌가치사슬 이론은 거의 40년 동안 발전을 거듭해와 각종 문헌을 통해 산업 클러스터, 부가가치 무역, 글로벌가치사슬 분업, 글로벌가치사슬 지배구조 등에 대한 수많은 연구를 수행하였다. 그러나 글로벌가치사슬에 대한 다양한 연구에도 불구하고, 글로벌가치사슬에 대한 객관화된 자료분석을 기초로 최근까지의 포괄적인 연구동향과 미래 방향성에 관한 체계적인 연구는 부족한 실정이다. 본 연구는 사회네트워크 분석과 과학적 프런티어 이론에 기반한 CiteSpace 5.8.R3 시 각화 소프트웨어를 활용하여 글로벌가치사슬에 관한 총 3,441편의 논문들을 정량적으로 분석하였다. 본 연구의 분석자료를 통해 글로벌가치사슬이론의 핵심 연구 동향과 연구 이슈를 정리한 결과, 글로벌가치사슬의 해외 연구는 부가가치획득, 업그레이드, 가치사슬의 역할 배분 및 지배구조에 집중되어 있었으며, 중국내 연구자들은 생산성과해외직접투자, 산업클러스터링 효과에 대한 연구에 한층 집중하는 경향을 보였다. Since the 21st century, countries have become more and more closely connected, and the once unattainable transoceanic and transcontinental trade has now become commonplace, and trade networks have invisibly penetrated all corners of the world. With the gradual improvement of communication and logistics technology, the traditional trade of finished products is gradually replaced by processing trade, and the production chain of trade goods in which each country participates constitutes the main body of the current international trade, and the production chain is known as the global value chain. Since Poter(1985) first proposed the concept of value chains, the theory of global value chains has been developed for nearly 40 years. From the existing literature, scholars at home and abroad have conducted a large number of studies on industrial clusters, value-added trade, global value chain division of labor, global value chain governance, etc. However, comprehensive literature review and classification studies are relatively lacking, and systematic studied on the current research hot spots and frontier trends of global value chains are still lacking. Based on the above problems, this paper quantitatively analyzed a total of 3,441 papers on global value chains by using CiteSpace 5.8.R3 visualization software based on social network analysis and scientific frontier theory. It provided a theoretical reference for promoting the research work and future development in the field of humanities and social sciences of global value chains.

Linking into Global Value Chains Is Not Sufficient: Do You Export Domestic Value Added Contents?

( Rashmi Banga ) 세종대학교 경제통합연구소 2014 Journal of Economic Integration Vol.29 No.2

This paper compares alternative ways of measuring participation of a country in Global Value Chains (GVCs) and estimates distribution of gains among countries in terms of countries` shares in total value-added created by trade under GVCs. Using the OECDWTO database on Trade in Value Added, this paper shows that 67% of total global value created under global value chains, accrue to OECD countries while share of NICs and BRICs countries is 25%. Only 8% of total value added is shared among all other developing countries and Least Developed Countries (LDCs). Linking into Global Value Chains is not enough for taking gains. Policy should be designed to raise forward linkages, that is, exporting domestic value-added contents. Trade-led growth is more complex than it seems.

Accounting of gross exports and tracing foreign values in the global pharmaceutical value chain - Where does Korea stand?

이창수,윤미경 한국무역학회 2018 Journal of Korea trade Vol.22 No.4

Purpose – The purpose of this paper is to document for the first time the vertical specialization structure of the global pharmaceutical value chain. Design/methodology/approach – The paper adopts Wang et al.’s (2013) gross exports decomposition method to trace foreign values in bilateral trade between major pharmaceutical producers, using the 2014 WIOT database. Findings – The paper shows that as in other sectoral value chains, the pharmaceutical value chain is heavily regional. The paper identifies a strong European regional value chain, and a less intensive, Asian regional value chain. Korea is positioned in the middle of the Asian value chain, and is connected to the European regional value chain as a second-tier supplier. Originality/value – The paper documents the vertical specialization structure of the global pharmaceutical value chain through gross exports decomposition method, making use of the World Input–Output Table Database 2014 which disaggregates pharmaceuticals in its industry classification for the first time.

A Study on the Reinforcement of Supply Chains Corresponding to Global Value Chain Reforms in the Automobile Parts and Component Industry

신성호,신수용 인하대학교 정석물류통상연구원 2021 JOURNAL OF INTERNATIONAL LOGISTICS AND TRADE Vol.19 No.3

Global value changes continued to expand until the late 2000s. On the other hand, regional value chains have formed around major regional hubs due to the expansion of domestic demand in emerging economies, such as China, and strengthened trade protectionism since the global financial crisis. Such changes lead to the reorganisation of value chains, focusing on domestic markets (reshoring) or neighbouring countries (nearshoring). In particular, the importance of supply chain risk management has been highlighted following disruptions to the supply network due to the COVID-19 outbreak in December 2019. In this regard, major countries such as the USA and the EU are rapidly shifting to regional value chains for stable and sustainable production, rather than primarily aiming for production efficiency targeted at reducing costs. Industries in particular are more exposed to such supply chain risks under the existing structure and it now has become extremely important for businesses to take reaction to such risks. This is especially important for major industries in a country such as automobile or semiconductor manufacturing industries in South Korea. The aim of this study, therefore, is to establish the basis for the simultaneous growth of ports and linked industries by examining the existing structure of the global value chain for the automotive industry, which has a strong presence in South Korea’s domestic economy. In this regard, this research carries out a supply chain analysis focusing on the imports and exports of automotive parts. It also analyses the current structural risks and suggests risk management measures to secure a stable supply chain.

전자산업 글로벌 가치사슬의 변화와 주요국의 참여 구조 분석

구지영 한국경제지리학회 2022 한국경제지리학회지 Vol.25 No.1

Under the global economic system, production activities has formed an international division of labor, which has greatly affected industries in individual countries by global issues such as the U.S-China trade war and neo-protectionism. In particular the risk and change of disconnection of semiconductor value chain caused by COVID-19 are evaluated as offering the crisis and opportunity at the same time to all countries participating in the global electronics industry value chain. Therefore, this study was conducted with the OECD Trade in Value Added(TiVA) based on the time when a detailed analysis of the global chain of the electronic industry is needed. As a result of the analysis, it was confirmed that the global value chain of the electronics industry is gradually expanding and strengthening, and that various countries are emerging as major actors in the global value chain. It was found that the U.S. and Japan are in charge of relatively high value-added activities, while Korea, Taiwan and China are in charge of low value-added activities, although they are large scale. 세계 경제체제 하에서 생산활동은 국제적 분업을 이루고 있으며, 이로 인해 미⋅중 무역전쟁, 신보호무역주의 등의 글로벌 이슈들에 의해 개별 국가의 산업은 큰 영향을 받게 되었다. 특히 코로나19로 인하여 발생 된반도체 가치사슬의 단절 위험과 변화는 글로벌 전자산업 가치사슬에 참여하는 모든 국가들에 위기와 기회를 동시에 제공하는 것으로 평가받고 있다. 이에 전자산업의 글로벌 가치사슬에 대한 면밀한 분석이 필요한 시점으로본 연구는 OECD 부가가치 기준 교역자료(TiVA)를 바탕으로 분석을 실시하였다. 분석 결과 전자산업의 글로벌가치사슬은 점차 확대⋅강화되고 있으며, 다양한 국가가 글로벌 가치사슬의 주요 행위자로 부상함을 확인하였다. 미국과 일본은 상대적으로 고부가가치 활동을 담당하는 반면 한국, 대만, 중국은 규모는 크지만 상대적으로 저부가가치 활동을 담당하는 것으로 나타났다. 그러나 대만과 중국은 점차 글로벌 가치사슬 내 위치가 상향되고 있어 한국도 글로벌 가치사슬 내 경쟁력 강화 방안 마련이 필요할 것으로 분석되었다.

The impact of Covid-19 on Globalization and the changes that occur in Global Value Chains (GVC)

박종돈 한국무역보험학회 2023 무역금융보험연구 Vol.24 No.6

COVID-19 pandemic, identifies the aspects and drivers of globalization and the global value chain (GVCs), and based on this, aims to present new foreign economic policy directions for Korean companies. Research design, data, methodology : The core of this task is to look at the new international economic order in the post-pandemic era. And based on this, the tasks of globalization of Korean companies and global value chains (GVCs) are presented. To this end, we will analyze and look at the changes in the international economic order (recession of globalization) during the pandemic and seek directions for Korean companies to enter overseas markets. Results : The global value chain, which pursues production efficiency through international division of labor in the production process, has become a 21st century trade pattern as the entire production process can be monitored from geographically distant places thanks to advances in transportation, logistics, and information and communication technology. Conclusions : In response to uncertainty, companies must first maintain a carefully structured value chain. Secure more inventory (therefore, cost increases are inevitable) and then move toward establishing a supply chain (Web) that diversifies the production process (multiple sourcing) instead of a supply chain.

Reassessment of the International Competitiveness in Global Value Chains: The Case of the Japanese Automotive Industry

陈媛媛,송정현 한국일본학회 2022 日本學報 Vol.- No.133

The international competitiveness of global trade has been analyzed in numerous studies. However, this paper focuses on four international competitiveness indices—revealed comparative advantage, participation, position, and income in the global value chain. We chose the automobile industry as the research object. Because it has a long industrial chain, high added value, and has a strong economic effect. These characteristics are very suitable for global value chain trade analysis. This study evaluates international competitiveness under the global value chain and conducts an empirical calculation during the period from 2005 to 2015 in the automotive industry. This paper adopts the comprehensive evaluation index of international competitiveness. The findings are listed below: Japan has been in the upper of the automotive global value chain for a long time due to its strong industrial foundation, core technology, and brand advantages. However, at present, the main emerging economies stand out conspicuously in the automotive global value chain.

한국 유니콘 기업의 글로벌 밸류체인(GVC) 참여 사례 연구

오고은,정무섭 한국국제경영관리학회 2019 국제경영리뷰 Vol.23 No.4

본 논문에서는 유니콘 기업이 어떻게 설립 후 10년 안에 기업가치가 1조원이상이 되었는지에 대해 의문을 가지며, 이 과정에서 7개의 글로벌 밸류체인에 대한 참여가 필수불가결일 것이라는 가설을 토대로 이를 한국의 8개 유니콘 기업의 사례를 통해 검증하였다. 2019년 5월 기준 한국의 8대 유니콘 기업의 기획금융, 인사, 연구개발, 제조, 판매 등 7가지 밸류체인을 수입, 수출, IFDI, OFDI의 글로벌 참여유형을 기준으로 분석해 본 결과 한 국 유니콘 기업들은 수입의 형태로 글로벌 밸류체인에 가장 많이 참여하고, 7개의 글로벌 밸류체인 중에는 판매와 기획・금융 밸류체인을 가장 많이 글로벌화 하는 것으로 드러났다. 위 분석 결과를 토대로, 한국 8대 유니콘 기업의 글로벌 밸류체인 참여의 형태는 주로 기획 금융을 유치하는 형태의 해외자본 유치형 유니콘기업과 해외시장으로 진출하는 형태의 해외시장 진출형 유니콘기업의 2가지 유형으로 나눌 수 있음을 확인했다. 해외로부터의 투자금 유치에 해당하는 기획 금융의 글로벌 밸류체인 참여가 8개 기업 중 6개에서나 확인되고 있다. 본 논문은 한국 경제 성장의 중요한 동력이라 할 수 있는 유니콘 기업의 성장요인을 기존의 온라인 측면이나 플랫폼 측면의 관점이 아니라 글로벌 밸류체인 활용이라는 관점에서 설명하기 위한 사례분석을 시도한 최초의 논문이라는 점에서 의의를 가진다고 할 수 있다. In this paper, we question how unicorn companies have become more than 1 trillion won in corporate value within 10 years of their establishment, and based on the hypothesis that participation in seven global value chains will be indispensable, we have verified this through the case of eight unicorn companies in Korea. As of May 2019, the analysis of seven value chains, including planning, personnel, research and development, manufacturing and sales of Korea's eight largest unicorns, based on the global participation types of imports, exports, IFDI and OFDI, showed that one of the unicorns participated in the global value chain the most in the form of imports, and among the seven global valuables, sales, planning and financial change the most. Based on the results of the above analysis, it was confirmed that the form of participation, a global value chain of the nation's eight largest unicorns, can be divided into two types: one that attracts planning and finance, and one that enters overseas markets. Participation in the global value chain of planned finance, which is equivalent to attracting investment from abroad, is confirmed in six of the eight companies. This paper is meaningful in that it is the first paper to attempt a case analysis to explain the growth factors of unicorn companies, which are important drivers of Korea's economic growth, from the perspective of the use of global value chains.

농업수출과 비관세장벽, 글로벌가치사슬 간 관계에 관한 연구

박근호(Keun Ho PARK) 한국무역상무학회 2017 貿易商務硏究 Vol.75 No.-

Recently, agricultural exports of Korea have steadily increased. But, no progress is being made at the WTO and DDA negotiations, the FTAs have playeda leading role in the formulation of the international trade rules, and countries have been cleverly utilizing non-tariff barriers such as SPS and TBT, there is a growing need to respond to non-tariff barriers aggressively. On the other hand, since the FTA has the potential to activate the global value chain, there is a high need for exporting companies in the domestic agricultural sector to understand the structure of the global value chain in agriculture and actively utilize the global value chain. The non-tariff measures of agricultural commodities major trading partners in the field of domestic agricultural exports were mostly comprised of SPS measures and TBT measures. The non-tariff measures corresponding to inputs and production stages of value chain elements (seeds, seedlings) in the value chain were mainly reported in SPS measures. TBT measures are mainly carried out in selective packaging, storage, processing, distribution, and export sales. It is most important for agricultural export companies to know their position on the value chain and information on non-tariff measures of importing countries in order to actively utilize the global value chain. Since there are non-tariff barriers that are difficult to be solved at the individual enterprise level, active government support of the government is not only important but also actively promoting relevant information to farmers and agricultural exporters. In addition, potential export farmers and prospective export companies will be able to identify TBT and SPS and other non-tariff barriers well in advance, and respond to them in advance. Also, through networking with export related organizations and overseas buyers, It is very important that policy support from the perspective of global value chain is linked effectively.