An institutional mechanism for integrating domestic manufacturing into global value chains
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Received August 2, 2019;Accepted September 9, 2019;Published September 27, 2019
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Author(s)Link to ORCID Index: https://orcid.org/0000-0003-0540-5413Link to ORCID Index: https://orcid.org/0000-0003-3803-9421Link to ORCID Index: https://orcid.org/0000-0002-3853-584XLink to ORCID Index: https://orcid.org/0000-0002-5314-242X
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DOIhttp://dx.doi.org/10.21511/ppm.17(3).2019.35
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Article InfoVolume 17 2019, Issue #3, pp. 438-451
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The study reveals the peculiarities of modern global production development due to global value chains (GVCs) formation that allow both developing and developed countries to integrate successfully into international production networks. This research is aimed at identifing key factors responsible for the upstream movement of Ukraine through GVCs and determining locations for production capacities, as well as at developing an institutional mechanism for facilitating the successful integration of domestic producers into GVSs. To achieve this, a multiple linear regression reflecting the interrelation between manufacturing industry share in exports value added and the institutional and economic indicators is analyzed. Three scientific hypotheses are tested and two of them are verified. The multiple linear regression results disclose a significant impact of institutional factors on the country’s ability to participate in GVCs and justify the first hypothesis, namely the higher the government effectiveness and regulatory quality are, the higher the manufacturing value added in exports is. Better governance and administrative functions performance enhance companies’ export potential. The model also verifies the second hypothesis that emphasizes better ability to join GVCs with low and medium technology product than with a high technology one. The model outputs contradict the third hypothesis on the protectionism: high tariffs for imports significantly matter in exports promotion. However, this result should be considered while accounting for the global trend of trade liberalization and Ukraine’s international agreements. The article proposes policy recommendations for improving the positions of Ukraine in GVCs.
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JEL Classification (Paper profile tab)F15, L52, O19
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References38
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Tables3
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Figures3
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- Figure 1. Ukrainian exports of industrial goods, 2010–2017
- Figure 2. Comparative advantages in value added share in GDP of Ukraine and worldwide, 1995–2017
- Figure 3. Institutional mechanism of country’s integration into global value chains
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- Table 1. Data for regression analysis
- Table 2. Descriptive statistics and correlation matrix
- Table 3. Regression results
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The risk management practices in the manufacturing SMEs in Cape Town
Clinton Mbuyiselo Sifumba , Kevin Boitshoko Mothibi , Anthony Ezeonwuka , Siphesande Qeke , Mamorena Lucia Matsoso doi: http://dx.doi.org/10.21511/ppm.15(2-2).2017.08Problems and Perspectives in Management Volume 15, 2017 Issue #2 (cont. 2) pp. 386-403 Views: 3364 Downloads: 531 TO CITE АНОТАЦІЯRisk management is one of the prominent issues which are pivotal to the success of a business and may adversely affect profitability if not properly practised. Therefore, the main objective of this paper was to determine risk management practices in manufacturing SMEs in Cape Town. The research conducted was quantitative in nature and constituted the collection of data from 74 SME leaders, all of whom had to adhere to a list of strict delineation criteria. All data collected were thoroughly analyzed through means of descriptive statistics. From the findings made, it is clear that SMEs in the manufacturing sector do in fact understand risk management initiatives applicable to ‘manage’ their respective businesses towards sustainability, but not to a large extent. It was found that respondents are unaware of the elements which make risk management effective, which ultimately aids to the development of problems for SMEs. All employees, managers and owners must coordinate their efforts together to identify and manage organizational risks within their ambit to obtain total risk coverage, as well as provide assurance that these risks are effectively managed from a coordinated approach. Further studies may be carried out to identify measures that can be taken to improve the effectiveness of risk management practices in SMEs.
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Foreign direct investment inflow and employment in Nigeria
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Acknowledgment(s)
The publication support received from Covenant University Centre for Research, Innovation and Discovery (CUCRID) is appreciated -
Market dynamics and future prospects of the automobile industry in Saudi Arabia
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