Send message to Authors

Paper short abstract:

We identify common barriers and opportunities for creating, sustaining, and expanding backward linkages from NR sectors. We find that overcoming barriers and harnessing opportunities require what we call 'negotiation' capabilities, which are crucial for navigating complex industry environments.

Paper long abstract:

We analyse 75 cases of knowledge-intensive suppliers to natural resource (NR) industries in Latin America to identify the main barriers and opportunities for creating, sustaining, and expanding backward linkages. We find that the barriers suppliers face differ depending on their level of development, thus we distinguish between barriers to entry (e.g. lack of credibility), barriers to survival (e.g. managing power asymmetries), and barriers to growth (e.g. navigating complex regulatory requirements). We then identify three key opportunities used to enter, survive and expand in the sector: leveraging localisation (proximity), adapting to local NR specificities (adaptation), and harnessing new knowledge (innovation). A novel finding from our research is that overcoming barriers and harnessing opportunities for linkage development and diversification require not only strong technological capabilities but also non-technological ones, particularly what we call 'negotiation' capabilities, which are crucial for navigating complex industry environments. Efforts to expand technological capabilities need to align with efforts to build, sustain, and expand negotiation, and other non-technological capabilities if firms are to succeed in the highly competitive NR supplier markets.

A better understanding of diversification away from NRs in resource rich countries is crucial given concerns that the rising demand for natural resources, driven by the global shift towards cleaner technologies, may lead to a ‘green resource curse’, deepening commodity dependence, economic overspecialisation and disarticulation, and fueling socio-environmental conflicts. Promoting diversification is essential not only for ensuring long-term economic benefits for these countries, but also for the justice and feasibility of the transition itself.

Send message to Author

Paper short abstract:

I aim to present a method combining absorptive capacity and economic complexity theory to identify industrial technologies African countries can adopt for green energy transition, focusing on lithium-ion battery supply chains and technology transfer strategies.

Paper long abstract:

This study identifies industrial technologies best suited for transfer to African countries to support their green energy transition. By integrating the concept of absorptive capacity with economic complexity theory, a novel method is developed to evaluate a country's ability to assimilate and commercially apply new technologies. This approach constructs networks of technological knowledge based on co-production patterns in trade and patent data, enabling the measurement of a country's density within these networks. This density reflects the country's existing relevant knowledge, providing a quantitative measure of its absorptive capacity.

The method is empirically validated using country and year fixed effects applied to trade data from 1996 to 2022, demonstrating that countries with higher product-specific density are more likely to successfully produce those goods. Furthermore, newly produced goods with links to a broader network of potential products contribute significantly to economic development.

Focusing on the lithium-ion battery supply chain, this method assesses the absorptive capacity of African countries for 31 key products across 693 related product networks. The analysis identifies products with the highest potential for driving GDP growth. The findings offer actionable insights for industrial policies, guiding African nations to prioritize manufacturing sectors capable of upgrading their roles within the lithium-ion battery supply chain through technology transfer. This approach emphasizes the importance of moving beyond reliance on critical mineral exports to foster effective energy transitions and sustainable economic development.

Send message to Author

Paper short abstract:

Focusing on green industrialisation, this research explores how industrial policy can leverage intersectoral dependencies to localise knowledge and while linking into GVCs. It bridges gaps in theories that overlook how African industrial hubs often rely on both domestic and foreign ownership.

Paper long abstract:

This research rests on three strands of the literature. First, it speaks to a strand of the literature that conceptualises economic development as a process driven by ‘the principle of relatedness’ whereby countries tend to diversify towards economic activities that do not require too distant capabilities (Hidalgo et al., 2018). Second, it acknowledges another strand of the literature that contends that structural change is in fact about ‘jumping’ into distant activities that can foster dynamic competitive advantage (Lin & Chang, 2009). Third, it addresses these diversification dynamics from the perspective of locally anchoring investments while participating in Global Value Chains (GVC) (Gong et al., 2024).

Debates on anchoring investment while contributing to GVC have often focused on the limited spillovers of FDI (UNCTAD, 2021). At the same time, standard theories studying the dynamics of industrial hubs often draw from Global North cases (e.g. Piore & Sabel, 1984; Saxenian, 1994), which tend to assume there exists a certain degree of domestic ownership and strategic autonomy. This is not applicable to the reality of many African industrial hubs, which rely on a combination of domestic and foreign ownership driven by their subordinate position in the global economy (Oqubay & Lin, 2020). What some of these theories suggest, however, is the potential of intersectoral dependencies in steering diversification dynamics (Andreoni, 2018). In this context, this research investigates how industrial policy can be used to benefit from GVC while localising knowledge by leveraging intersectoral dependencies, with specific reference to green industrialisation.

Send message to Author

Paper short abstract:

This paper analyzes the Kenyan SGR’s institutional impact via three drivers: export of Chinese standards, technology transfer fostering local innovation, and regulatory gaps informing security pluralism. It highlights co-evolution in Chinese and local actors in China-Global South relations.

Paper long abstract:

This paper discusses institutional impact of the Kenyan Standard Gauge Railway by discussing three drivers, their effect on Chineses and Kenyan stakeholders, and the resulting institutional impact. First, the need for overseas market expansion galvanizes BRI’s introduction of Chinese standards, technology, and equipment, pushing forward for bureaucratic and procedural changes for both the Chinese and Kenyan entities during railway development. Second, to ensure that railway technology is fully transferred to Kenyan hands to ensure project ownership and sustainability, Chinese and Kenyan stakeholders overcome push for innovations that revolutionizes local learning institutions. Third, in the development of the railway project, the regulatory vacuum in a nascent railway industry in Kenya creates opportunities for the Chinese corporation to shape local security arrangements by involving private contractors, introducing Chinese laws, regulations, and training. The institutional impact of the SGR showcases the co-evolution of Chinese and host country institutions driven by megaproject development, inspiring new directions in the study of China-Global South relations and global China.

Send message to Author

Paper short abstract:

This paper seeks to enhance understanding of the role large enterprises play in driving structural change. It examines their business strategies in influencing industrial development—focusing on investment decisions aimed at building scale and scope, and in advancing production capabilities.

Paper long abstract:

This presentation will explore the centrality of business models in Africa to the process of structural change by developing a taxonomy of business models across distinct time periods. Building on insights from an initial landscaping exercise, the presentation will categorise and analyse the evolution of these business models, including multinational corporations, diversified business groups, and state-owned enterprises, to understand their varying roles in fostering or hindering structural change. By conducting a comparative analysis, the research identifies shifts in the types of businesses over time and evaluates their contributions to industrialisation, economic diversification, and productivity enhancement. Lessons from East Asian economies provide a contextual framework for understanding the factors that have made business models more or less integral to structural change in Africa.

This presentation will also explore the strategies of large enterprises in driving structural change in Africa, focusing on their business models as a complex interplay of factors influenced by both internal and external environments. Large businesses often hold significant power, with the ability to influence policies. Understanding how these power dynamics shape their decisions to invest in production capabilities is crucial for designing policies that can shape structural change. For instance, the balance between competition and entrenched market positions plays a pivotal role in shaping their strategies. A deeper exploration of the strategies employed by large enterprises is essential to understanding their impact on structural change and in turn influence more targeted policies.

Send message to Author

Paper short abstract:

To catch up, African countries need inputs from foreign actors. This paper tests whether limitations in the supply of foreign intermediary goods to key sectors hinder industrialization and discusses their impact on regional trade and the industrialization process.

Paper long abstract:

Despite African countries’ lag in terms of development, they are the most at risk due to climate change and pandemics. They consequently need to implement several policies to adapt to the new challenges; however, those policies rely on technologies that African countries do not yet have. Facing those challenges, therefore, means gaining access to these technologies. As evidenced by the COVID crisis, access to vital technologies can face bottlenecks in times of crisis, and African countries might be interested in producing them domestically. However, the production of these goods can also be limited by additional bottlenecks. While some of these technologies can easily be bought by African actors, others can be more difficult to access. Intermediary goods required for the production at an industrial scale of key technologies can have their access limited due to intellectual property rights, export quotas, or high prices. African actors can therefore face difficulties accessing key technologies, which can limit their process of industrialization.

I will identify key technologies in the pharmaceutical and renewable energy sectors and test whether there are bottlenecks in their supply chains that could limit the emergence of domestic African industries. This analysis will rely on secondary data (trade database: BACI CEPII; Deep Trade Agreements database; market reports, etc.). I will also discuss the consequences for the industrialization process, both in terms of learning from imported technologies and the long run competitiveness of African industries. Additionally, I will examine the role of regional supply chains in addressing these vulnerabilities.

Send message to Author

Paper short abstract:

The paper presents four business models of electronics firms in Kazakhstan, highlighting strategies for advancing electronics production and collaborating with international partners. The firms range from those reliant on technology transfer to those investing in local R&D and software development.

Paper long abstract:

Amid China's growing influence in the digital arena, its role as a key supplier of electronic components for Southern firms outsourcing manufacturing has been underexplored. This article applies the Global Production Network (GPN) theory to Kazakhstan’s electronics sector, examining technological catch-up in South-South relations. It investigates the models of technological development pursued by Kazakhstani firms and their integration into global networks of technology transfer and production.

Based on fieldwork interviews with local electronics companies in Kazakhstan in 2023, the article identifies four business models that showcase different strategies for building expertise, production, and innovation capabilities and collaboration with international—primarily Chinese—partners. These firms range from those heavily reliant on tech transfer, such as localising Russian and Chinese technologies with limited local hardware production, software development, and final assembly, to those developing independent R&D and software capabilities on top of imported hardware, such as a fabless IT company with in-house R&D and outsourced component production.

GPN theory, with its focus on the organization and governance of global industries, helps highlight how Kazakhstani firms are embedded in global networks of technology transfer and production, shaped by power asymmetries, geopolitical dynamics, and dependence on foreign know-how. Despite diversification across suppliers from China, Russia, and the West, Chinese partnerships are the majority, as firms emphasize the necessity of Chinese technology due to the lack of local manufacturing capacity and cost-effective, reliable international alternatives. While Kazakhstan’s electronics sector remains in its early stages, state programs, local private capital, and foreign partnerships offer pathways for growth.

Send message to Author

Paper short abstract:

This paper examines how Sudanese communities affected by the April 2023 war adapted to crises by blending traditional practices with modern innovations. It highlights the use of solar panels, Starlink devices, and resource-efficient tools like goat-skin vessels, wood-fueled ovens, and kerosene lante

Paper long abstract:

The April 15, 2023, war in Khartoum and its ensuing power outages have reignited traditional practices in Sudanese communities, blending local ingenuity with modern adaptations to confront severe hardships. This paper explores how citizens in war-affected zones and rural villages, where modern amenities are scarce, draw on indigenous knowledge and resource-efficient technologies to sustain livelihoods during crises.

To address disrupted communication networks, communities have adopted Starlink devices and solar panels, providing limited electricity for mosques and mobile phone charging. These systems are complemented by the return of traditional tools and techniques such as kerosene-fueled lanterns, goat-skin vessels ("Sean" or "Qirbah") for dairy production, wood-fueled ovens, and charcoal-powered irons. These adaptations reflect the resilience of communities and their ability to navigate intersecting crises through sustainable practices and innovative solutions.

By examining these practices, this paper highlights how Sudanese communities balance natural resource dependency with ingenuity to confront crises. These insights contribute to broader discussions of structural transformation and economic diversification in Africa, offering pathways to environmentally and socially sustainable strategies that address the twin challenges of ecological crises and economic vulnerabilities.

Send message to Authors

Paper short abstract:

This study employed a systematic review to critically analyze the feasibility of Nigeria's net-zero goal within the global climate governance framework with focus on internal execution measures and international partnerships.

Paper long abstract:

As one of the top 5 highest carbon emission countries in Africa, Nigeria joined the global train to promote low carbon emissions and develop a sustainable environment by enacting the Climate Change Act in 2021. Major changes made to the Act barely a year after its enactment, has sparked speculations. In view of this, this study employed a systematic review to critically analyze the feasibility of Nigeria's net-zero goal within the global climate governance framework with focus on internal execution measures and international partnerships. Findings from the study revealed shortcomings facing the execution of the Act, such as internal crisis, costly bureaucratic challenges that has slowed down the execution, limited financial aid and lack of specific targets aligned with National Determined Contributions (NDCs). Hence, greater political will, international collaboration and public engagement put Nigeria in the right direction to attain Net-zero 2060.