1 introduction ...............................................................................................1

part 1: basic definitions and context.................................................4

2 what is a value chain?...........................................................................4

2.1 definitions ...................................................................................................4

2.1.1 the simple value chain ........................................................................4

2.1.2 the extended value chain.......................................................................4

2.1.3 one or many value chains .....................................................................6

2.1.4 one or many labels?..............................................................................6

3 why is value chain analysis important?..................................9

3.1 the growing importance of systemic competitiveness ........................9

3.2 is efficient production enough? ............................................................12

3.2.1 making the best of globalisation..........................................................14

3.2.2 the march of globalisation..................................................................15

3.2.3 winners and losers from globalisation................................................16

3.2.4 making the best of globalisation..........................................................18

3.2.5 making the worst of globalisation .......................................................18

3.2.6 how does value chain research inform this debate on globalisation? 22

part 2: key analytical constructs ....................................................24

4 is the value chain a heuristic device or an analytical

tool?........................................................................................................................25

4.1 three key elements of value chain analysis ......................................25

4.1.1 barriers to entry and rent ....................................................................25

4.1.2 governance..........................................................................................29

4.1.3 different types of value chains ............................................................32

5 value chains, innovation and upgrading...............................37

different types of upgrading.............................................................................37

6 value chain analysis and the determinants of income

distribution........................................................................................................41

6.1 mapping distributional outcomes in the value chain........................41

6.2 understanding the determinants of income distribution in value

chains......................................................................................................................43

6.3 levers of power in value chain dynamics ............................................44

7 how does value chain analysis differ from

conventional industry studies and from what social

scientists (and especially economists) normally do?.........46

part 3: a methodology for undertaking value chain

research...............................................................................................................49

8 the point of entry for value chain analysis......................50

9 mapping value chains...........................................................................53

10 product segments and critical success factor’s in

final markets....................................................................................................55

11 how producers access final markets..................................60

12 benchmarking production efficiency.................................63

13 governance of value chains ......................................................66

13.1 “governance”: an overview ..................................................................67

13.2 rule-making and rule keeping ...............................................................68

13.3 types of rules............................................................................................68

13.4 internal and external rule-setting.....................................................69

13.5 sanctions in the rule-regime..................................................................72

13.6 the legitimacy of power .........................................................................73

13.7 the pervasiveness of the rule-regime ..................................................74

14 upgrading in value chains............................................................76

14.1 distributional issues......................................................................78

14.2 rents and barriers to entry ..................................................................79

14.3 the unit of account, that is which currency is utilised to measure

income.....................................................................................................................81

14.4 in what circumstances turnover and value added data illuminate

the analysis...........................................................................................................84

14.5 how is profitability to be measured, and are profits an appropriate

measure of distributional outcomes? ..............................................................86

14.6 the locational dimensions of income distribution ..........................90

14.7 decomposing income streams - class, gender, ethnicity, and income

groups,....................................................................................................................91

15 incorporating a knowledge focus into value chain

analysis .................................................................................................................94

16 how do smes fit into global value chains?......................97

17 conclusion and policy implications...................................101

references ........................................................................................................105

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