Editing Value chain (section)

== Global value chains ==
{{Main|Global value chain}}

=== Cross border / cross region value chains ===
Often multinational enterprises (MNEs) developed global value chains, investing abroad and establishing affiliates that provided critical support to remaining activities at home.  To enhance efficiency and to optimize profits, multinational enterprises locate "research, development, design, assembly, production of parts, marketing and branding" activities in different countries around the globe. MNEs [[Offshoring|offshore]] labour-intensive activities to [[China]] and [[Mexico]], for example, where the cost of labor is the lowest {{harv|Gurría|2012}}.<ref name="OECD5nov2012"/> The emergence of global value chains (GVCs) in the late 1990s provided a catalyst for accelerated change in the landscape of international investment and trade, with major, far-reaching consequences on governments as well as enterprises.{{harv|Gurría|2012}}<ref name="OECD5nov2012" />

=== Global value chains in development===
Through global value chains, there has been a growth in interconnectedness as MNEs play an increasingly larger role in the internationalisation of business. In response, governments have cut corporate income tax rates or introduced new incentives for research and development to compete in this changing geopolitical landscape {{harv|LeBlanc|Matthews|Mellbye|2013|p=6}}.<ref name="OECD4sept2013">{{cite report|publisher=[[OECD]]|url=http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/the-tax-policy-landscape-five-years-after-the-crisis_5k40l4dxk0hk-en#page7|series=OECD Taxation Working Papers|title=The Tax Policy Landscape Five Years after the Crisis|author1=Pierre LeBlanc|author2=Stephen Matthews|author3=Kirsti Mellbye|location=France|date=4 September 2013|access-date=7 September 2013|url-status=live|archive-url=https://web.archive.org/web/20140318165753/http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/the-tax-policy-landscape-five-years-after-the-crisis_5k40l4dxk0hk-en#page7|archive-date=18 March 2014}}</ref>

In an (industrial) development context, the concepts of global value chain analysis were first introduced in the 1990s (Gereffi et al.)<ref>Gereffi, G., (1994). The Organisation of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks. In G. Gereffi, and M. Korzeniewicz (Eds), Commodity Chains and Global Capitalism. Westport, CT: Praeger.</ref> and have gradually been integrated into development policy by the [[World Bank]], [[Unctad]],<ref>{{cite web| url=http://unctad.org/en/PublicationsLibrary/diae2013d1_en.pdf | title=Global Value Chains and Development | publisher=Unctad |archive-url=https://web.archive.org/web/20180824034221/https://unctad.org/en/publicationslibrary/diae2013d1_en.pdf |archive-date=2018-08-24 }}</ref> the [[OECD]] and others.

Value chain analysis has also been employed in the development sector as a means of identifying poverty reduction strategies by upgrading along the value chain.<ref>{{cite journal|author1=Jonathan Mitchell|author2=Christopher Coles|author3=Jodie Keane|name-list-style=amp|title=Upgrading Along Value Chains: Strategies for Poverty Reduction in Latin America|journal=Comercio y Pobreza en Latino América|date=December 2009|series=Briefing Paper|url=http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinion-files/5654.pdf|publisher=Overseas Development Institute|location=London}}{{Dead link|date=February 2022 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> Although commonly associated with export-oriented trade, development practitioners have begun to highlight the importance of developing national and intra-regional chains in addition to international ones.<ref>{{cite web| title=Value Chain Development Wiki | url=https://www.marketlinks.org/using-value-chain-development-wiki| archive-url=https://web.archive.org/web/20201030104432/https://www.marketlinks.org/using-value-chain-development-wiki |archive-date=2020-10-30 | url-status=live}}] Washington, D.C.: USAID.</ref>

For example, the [[International Crops Research Institute for the Semi-Arid Tropics]] ([[ICRISAT]]) has investigated strengthening the value chain for [[sweet sorghum]] as a [[biofuel]] crop in [[India]]. Its aim in doing so was to provide a sustainable means of making ethanol that would increase the incomes of the rural poor, without sacrificing food and fodder security, while protecting the environment.<ref>[http://exploreit.icrisat.org/sites/default/files/uploads/1378281395_DevelopingASweetSorghum_2013.pdf ''Developing a sweet sorghum ethanol value chain''] {{webarchive|url=https://web.archive.org/web/20140223044045/http://exploreit.icrisat.org/sites/default/files/uploads/1378281395_DevelopingASweetSorghum_2013.pdf |date=2014-02-23 }} [[ICRISAT]], 2013</ref>