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Value Chain Economics

Course developer

Course abstract

The course provides knowledge of value chain economics in the context of the global and national markets. The course focuses on value chain research issues such as basic elements and kinds of the value chain, planning and analysis methods to increase the added value, the role of the value chain in business and the territorial and spatial dimension thereof, as well as current relevant global processes and their implications. The course analyses value chain examples in different agricultural sectors in Latvia.

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
The basic elements of a value chain and the role of a value chain under globalisation and sustainability conditions. Test, an examination.
Methods for analysing value chains, the dimensions and factors of a value chain. Test, an examination.
The specifics of a value chain in agricultural sectors in Latvia. Test, independent work.
SKILLS
Professional skills to
Identify value chain elements and links among them. Test, independent work.
Identify and describe flows of goods and services for certain value chains. Independent work.
Analyse value chains and find solutions to increasing the added value. Independent work.
Soft skills to
Responsibly plan the completion of the assignments given. Independent work.
Select information and present the calculations performed and proposals made. Independent work.
COMPETENCES to
Comprehend the roles and liability of various stakeholders involved as well as the effects of macroeconomic factors (national and global socio-economic, political, technological etc.) on product value creation. Independent work, tests, an examination.
Make well-thought-out and reasoned decisions as well as assess the resources needed for their implementation and the processes and consequences involved in order to optimise the gains of value chain participants. Independent work.

Course Content(Calendar)

Lectures (16 hours)
1) Substance and content of value chain economics (1 hour).
2) Types and elements of a value chain (1 hour).
3) Value chain and globalization (1 hour).
4) Value chain in business (1 hour).
5) Value chains and marketing (1 hour).
6) Spatial dimension of the value chain (1 hour).
7) Value chain analysis: M.Porter’s model (3 hours).
8) Value chain analysis: the 5-step model (1 hour).
9) Increasing the efficiency of a value chain (3 hours).
10) Value added formation in the agriculture of Latvia (3 hours).
Practicals and seminars (16 hours)
1) Basic concepts of value chain economics and their application (1 hour).
2) Examples of basic elements of a value chain in various industries (1 hour).
3) Identification of the actors involved in the value chain, the characteristics of mutual interaction for a certain product (2 hours).
4) Test (1 hour).
5) Global consumption chains – an analysis of examples (1 hour).
6) Involvement of small and medium enterprises in global value chains (1 hour).
7) Test (1 hour).
8) Application of M.Porter's model to value chain analyses of a particular product, opportunities and proposals for increasing the value (3 hours).
9) 5-step analysis of the value chain of a particular product, opportunities and proposals for increasing the value (1 hour).
10) Test (1 hour).
11) Presentations of students’ practical assignments (3 hours).

Requirements for awarding credit points

The student must pass three tests on the topics of the course, complete and submit independent work on the formation and analysis of a value chain of an agricultural product. The course ends with an examination.

Description of the organization and tasks of students’ independent work

Independent work: the formation and analysis of a value chain of an agricultural product, the characteristics of the stages and dimensions of the value chain.

Criteria for Evaluating Learning Outcomes

The course ends with an examination. The final mark consists of the following pieces of assessment: Test 1 – 15%, Test 2 – 15%, test 3 – 15%, independent work and its presentation – 15%, an examination – 40%. 10% are equal to one point on a 10-point marking scale.

Compulsory reading

1. McGuffog T. Building Effective Value Chains: Value and Its Management. London; Philadelphia; New Delhi: Kogan Page Limited, 2016. 230 p.
2. Measuring and Analyzing the Impact of GVCs on Economic Development: Global value chaindevelopment report (2017). Foreword by Michael Spence; World Bank Group, DE-JETRO, OECD, UIBE, World Trade Organization. Washington, DC, USA: World Bank Group. 2017. 189 p.
Global Value Chain Development Report 2017: Measuring and Analyzing the Impact of GVCs on Economic Development. World Bank Document [tiešsaiste] [skatīts 18.02.2021.]. Pieejams: https://openknowledge.worldbank.org/bitstream/handle/10986/29593/ACS22639-WP-P157880-PUBLIC-TCGPGVCsb.pdf?sequence=1&isAllowed=y
3. Kaplinsky R., Morris M. A Handbook for Value Chain Research. International Development Research Center, 2003. 113. p.
4. Baldwin, C., Clark, K., Magretta, J., and Dyer, J., Harvard Business Review on Managing the Value Chain, Harvard Business School Press, 2000. 283 p.
5. Miller C.Jones L. Agricultural Value Chain Finance: Tools and Lessons. Food and Agriculture Organization of the United Nations. Rome: FAO; Bourton on Dunsmore, Rugby, Warwickshire, UK:Practical Action Publishing, 2010. 176 p.

Further reading

1. Beņkovskis K. Globālās vērtību ķēdes un to loma starptautiskajā tirdzniecībā. Latvijas Banka. 2015. Pieejams: https://www.makroekonomika.lv/globalas-vertibu-kedes-un-loma-starptautiskaja-tirdznieciba
2. Ziņojums par vērtību ķēdes optimizāciju ES zivsaimniecības nozarē. 2017. Eiropas Parlaments. Pieejams: https://www.europarl.europa.eu/doceo/document/A-8-2018-0163_LV.pdf
3. Beņkovskis K., Jaširo N., Maso J., Tkačevs O., Vahters P. Eksports un produktivitāte globālajās vērtības ķēdēs: Latvijas un Igaunijas datu salīdzinošā analīze. OECD/Latvijas Bankas tulkojums. Pieejams: https://www.bank.lv/images/stories/pielikumi/publikacijas/petijumi/p_3-2018_lv.pdf
4. Popescu, M, Dascălu, A. Value chain analysis in quality management context. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 01 January 2011, Vol. 4(2), p.121-128.
5. Tunkele S., Mārciņš J. Value added chain assessment of forest industry in Latvia. In: Trends in Agricultural Engineering 2010: 4th International conference: collection of abstracts, Prague, Czech Republic, 7 – 10 September 2010. / Czech University of Life Sciences Prague. Faculty of Engineering. Prague, 2010. 143.lpp.
6. The Cambridge Natural Capital Programme. Building resilient value chains. Cambridge Programme for Sustainability Leadership. 2011. 14.p.

Periodicals and other sources

1. Consumer Goods Forum, Future Value Chain 2020. Pieejams: http://www.futurevaluechain.com
2. CSR Europe, Managing Sustainable Supply Chains. Pieejams: http://www.csr-supplychain.org
3. European Commission- Joint Research Centre, Institute for the Environment and Sustainability, Life Cycle Thinking and Assessment. Pieejams: http://lct.jrc.ec.europa.eu
4. Government of South Australia, PIRSA Value Chains, Value Chain Toolkit. Pieejams: http://www.pir.sa.gov.au/valuechains/ value_chain_toolkit
5. UN GC, UN Global Compact Supply Chain Resources & Practices. Pieejams: http://supply-chain. unglobalcompact.org
6. US Environmental Protection Agency, National Risk Management Research Laboratory, Life-Cycle Assessment. Pieejams: http://www.epa.gov/nrmrl/lcaccess

Notes

Restricted elective course for the ESAF academic bachelor programme Economics, specialization Agricultural and Environmental Economics