Global Value Chains shows a country’s economic integration in global trade. The activity of increasing value added in the GVC scheme can describe competitiveness, industrial progress and economic development. This study aims to analyze the competitiveness of global value chains in Indonesia’s economic development. This research was descriptive qualitative along with library research methods. The analysis was conducted by relying on GVC analysis tools submitted by Raphael Kaplinsky and Mike Morris (2000), in the form of rents, governance and upgrading. From the analysis conducted, it was concluded that the aspects of rents that were based on the competitiveness of Indonesian companies were still low. The specialization is still around raw materials and limited manufacturing products, which are mostly upstream with low high-tech. In the governance aspect, the environment to support competitiveness and low production power is due to high logistical costs and price and regulatory distortion. In the upgrading aspect, Indonesia is only able to go up one level at the limited manufacturing stage due to its low R&D costs.
Competitiveness, Economics, GVC, Indonesia
International Journal of Trend in Scientific Research and Development - IJTSRD having
online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International
Journal which provides rapid publication of your research articles and aims to promote
the theory and practice along with knowledge sharing between researchers, developers,
engineers, students, and practitioners working in and around the world in many areas
like Sciences, Technology, Innovation, Engineering, Agriculture, Management and
many more and it is recommended by all Universities, review articles and short communications
in all subjects. IJTSRD running an International Journal who are proving quality
publication of peer reviewed and refereed international journals from diverse fields
that emphasizes new research, development and their applications. IJTSRD provides
an online access to exchange your research work, technical notes & surveying results
among professionals throughout the world in e-journals. IJTSRD is a fastest growing
and dynamic professional organization. The aim of this organization is to provide
access not only to world class research resources, but through its professionals
aim to bring in a significant transformation in the real of open access journals
and online publishing.