Abstract
Global Value Chain (GVC) analysis uses the concept of upgrading to highlight paths for developing country firms to "move up the value chain," usually through the lenses of four categories-product, process, functional, and inter-sectoral upgrading. The implicit normative expectation is that these firms move toward producing higher value-added products and/or take on more sophisticated functions along a value chain. In this article, upgrading is approached more broadly as "reaching a better deal," including a balance between rewards and risk. The case study of South African wine shows that better product quality, improved processes, and some functional upgrading have co-existed with processes of "downgrading," higher risks, and limited rewards, especially in traditional export markets. A reflection on further conceptual development and directions for empirical research is also provided.
| Original language | English |
|---|---|
| Journal | World Development |
| Volume | 37 |
| Issue number | 10 |
| Pages (from-to) | 1637-1650 |
| Number of pages | 14 |
| ISSN | 0305-750X |
| DOIs | |
| Publication status | Published - 2009 |
| Externally published | Yes |
Keywords
- Upgrading
- Global Value Chain (GVC) analysis
- Wine
- South Africa
Cite this
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Which Way is "Up" in Upgrading? Trajectories of Change in the Value Chain for South African Wine. / Ponte, Stefano; Ewert, Joachim.
In: World Development, Vol. 37, No. 10, 2009, p. 1637-1650.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Which Way is "Up" in Upgrading?
T2 - Trajectories of Change in the Value Chain for South African Wine
AU - Ponte, Stefano
AU - Ewert, Joachim
PY - 2009
Y1 - 2009
N2 - Global Value Chain (GVC) analysis uses the concept of upgrading to highlight paths for developing country firms to "move up the value chain," usually through the lenses of four categories-product, process, functional, and inter-sectoral upgrading. The implicit normative expectation is that these firms move toward producing higher value-added products and/or take on more sophisticated functions along a value chain. In this article, upgrading is approached more broadly as "reaching a better deal," including a balance between rewards and risk. The case study of South African wine shows that better product quality, improved processes, and some functional upgrading have co-existed with processes of "downgrading," higher risks, and limited rewards, especially in traditional export markets. A reflection on further conceptual development and directions for empirical research is also provided.
AB - Global Value Chain (GVC) analysis uses the concept of upgrading to highlight paths for developing country firms to "move up the value chain," usually through the lenses of four categories-product, process, functional, and inter-sectoral upgrading. The implicit normative expectation is that these firms move toward producing higher value-added products and/or take on more sophisticated functions along a value chain. In this article, upgrading is approached more broadly as "reaching a better deal," including a balance between rewards and risk. The case study of South African wine shows that better product quality, improved processes, and some functional upgrading have co-existed with processes of "downgrading," higher risks, and limited rewards, especially in traditional export markets. A reflection on further conceptual development and directions for empirical research is also provided.
KW - Upgrading
KW - Global Value Chain (GVC) analysis
KW - Wine
KW - South Africa
KW - Upgrading
KW - Global Value Chain (GVC) analysis
KW - Wine
KW - South Africa
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U2 - 10.1016/j.worlddev.2009.03.008
DO - 10.1016/j.worlddev.2009.03.008
M3 - Journal article
VL - 37
SP - 1637
EP - 1650
JO - World Development
JF - World Development
SN - 0305-750X
IS - 10
ER -