Rising concentration in Asia-Latin American value chains: Can small firms turn the tide?
This research explores the role of small and medium-sized enterprises (SMEs) in Latin American exports to Asia, focusing on their potential to participate in value chains and the measures that can make those chains more inclusive and sustainable. It examines the low direct presence of SMEs in the region's exports, their weak participation in multinational companies' supplier networks, and reviews supplier development programs (SDPs) in Asia and Latin America aimed at boosting SME productivity and value chain participation. The study concludes that Latin American governments must improve the business environment to encourage multinational investment, innovation, and the scaling up of SDPs to forge stronger business linkages with SMEs, thereby reducing productivity gaps and income inequality.
(Generated with the help of GPT-4)
Quick Facts | |
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Report location: | source |
Language: | English |
Publisher: | |
Authors: | , Andrés López, Daniela Ramos, Keiji Inoue, Nanno Mulder, Osvaldo Rosales |
Page count: | 284 páginas. |
Methods
The research method used in this report includes a combination of desk-based and field-based research, qualitative interviews, and case studies. It involves analyzing trade and investment data, examining the behavior of exporting firms, assessing the rotation and concentration of shipments, and exploring the role of SMEs in value chains. The study also reviews supplier development programs and evaluates their impact on SME linkages with multinational firms. Additionally, the research includes interviews with key personnel from trans-Latin firms with investments in Asia to understand their strategies and relations with SMEs.
(Generated with the help of GPT-4)
Key Insights
The research investigates the rising concentration in Asia-Latin American value chains and the potential for small firms to counter this trend. It examines the dynamics of trade and investment between the two regions, the role of small and medium-sized enterprises (SMEs) in exports to Asia, and the impact of supplier development programs (SDPs) in fostering SME linkages with multinational firms. The study analyzes the challenges and opportunities for SMEs to participate in global value chains, the conditions imposed by trans-Latin companies, and the policy instruments that could enhance SME integration. It presents case studies of Argentine firms with investments in Asia and discusses the implications of their strategies for SMEs in their home countries.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: English publication language | asia-latin america relations | case studies | economic integration | export behavior | global value chains | inclusive growth | investment flows | multinational firms | policy implications | sme challenges | sme participation | supplier development | trade dynamics | trans-latin companies | value chains