Logistics and Value Chain Development: Cost and Capability Considerations

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While much of the literature has focused on the influence of trade costs on global value chain (GVC)-engagement, more limited attention has been paid to the role of logistics capabilities. This omission negates the role of the logistics sector in enabling certain types of upgrading, such as “multi-chain” including through horizontal integration. The comparative GVC case study analysis presented in this chapter, which draws on the upgrading experiences of producers in the cut flower GVC in East Africa and firms that trade on an intra- or extra-regional basis in Southern Africa, underscores the importance of the logistics sector in terms of the development of producers’ capabilities.

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