Possibilities for Upgrading High-tech GVCs Toward Stronger SDG Performance

Abstract

International trade and production have been increasingly organized around the configuration and evolution of global value chains (GVCs), even as the sustainable development goals (SDGs) have been established in an era of deepening globalization. The connection between these two processes raises some concerns around how economies, firms, and individuals can benefit from participation in the global economy. This chapter looks at the relationship between the relative positions of countries in high-tech GVCs and the impact on potential fulfillment of the SDGs. In this chapter, the authors make a first approach (descriptive analysis) to the relationship between the relative positions of countries in high-tech GVCs, possibilities for upgrading, and corresponding levels of inequality. The authors focus particularly on a set of indicators corresponding to Goal 1 (no poverty), Goal 5 (gender equality), Goal 9 (industry, innovation, and infrastructure), and Goal 10 (reduced inequalities). The findings reveal that the relationship between the position of a country in terms of forward and backward participations and the relative distance to fulfillment of the SDGs differs among distinct GVCs. While some patterns of income inequality reduction are observed in high-tech-related industries, gender inequality is not similarly affected. This confirms the relevance of building a two-dimensional framework that looks simultaneously at GVCs (i.e., the type of GVC and type of participation) as well as the distance from SDG achievement.

Citation

Biurrun, A. and Álvarez, I. (2023), "Possibilities for Upgrading High-tech GVCs Toward Stronger SDG Performance", van Tulder, R., Giuliani, E. and Álvarez, I. (Ed.) International Business and Sustainable Development Goals (Progress in International Business Research, Vol. 17), Emerald Publishing Limited, Leeds, pp. 285-308. https://doi.org/10.1108/S1745-886220230000017015