Presentation of a Conceptual Model for Sustainable Employment Development and Economic Progress in Local Communities through Value Chain Development and Completion Approach
Subject Areas : Journal of Value Chain ManagementMasoud Panahi 1 , farzad fathi chaharrah 2 * , babak nekouei 3
1 - CEO of Alavi Economic Empowerment Institute
2 -
3 - Vice President of Alavi Economic Empowerment Institute for planning, monitoring and training
Keywords: Sustainable employment development, economic progress, local value chain, community empowerment, structural equation modeling.,
Abstract :
Despite the abundant indigenous capacities in local communities, the absence of a coherent model for leveraging value chains remains a major barrier to the development of sustainable employment and economic progress in these areas. The present study aims to design a conceptual model for sustainable employment development and economic advancement in local communities through the approach of value chain completion and development. This empirical research is based on the implementation of 60 advantage-driven projects across Iran, presenting their outcomes and assessing the effectiveness of the actions taken. The study is applied in nature and methodologically descriptive-correlational, aiming to systematically describe the factors influencing sustainable employment within local contexts. In the qualitative phase, semi-structured interviews were conducted with 20 managers from key employment institutions. The data were analyzed through content analysis and coding, which led to the development of the initial model. After identifying the key variables, the quantitative phase was carried out using structural equation modeling (SEM) on data collected from 120 experts involved in value chain projects. The findings showed that the development of economic capacities based on the value chain has a positive and significant effect on empowering the local development platform. Ultimately, these two variables lead to developmental outcomes and economic sustainability, including a sustainable economy and economic advancement.
1. Abrell, Jan & Kosch, Mirjam, 2022. "Cross-country spillovers of renewable energy promotion—The case of Germany," Resource and Energy Economics, Elsevier, vol. 68(C).
2. Adedokun, A.J.; Falayi, O.R.; Adeleke, A.M. An autoregressive analysis of the determinants of private savings in Nigeria. Rev. Innov. Compet. A J. Econ. Soc. Res. 2020, 6, 5–20.
3. Banga, J. The green bond market: A potential source of climate finance for developing countries. J. Sustain. Financ. Invest. 2019, 9, 17–32.
4. Busch, D. EU Sustainable Finance Disclosure Regulation. Cap. Mark. Law J. 2023, 18, 303–328.
5. Cai, J.; Li, X.; Liu, L.; Chen, Y.; Wang, X.; Lu, S. Coupling and Coordinated Development of New Urbanization and Agro-Ecological Environment in China. Sci. Total Environ. 2021, 776, 145837.
6. Chakraborty, D. Exploring causality between domestic savings and economic growth: Fresh panel evidence from BRICS countries. Econ. Altern. 2023, 1, 48–69.
7. Chen, Shiyi & Song, Hong & Wu, Chenyu, 2021. "Human capital investment and firms’ industrial emissions: Evidence and mechanism," Journal of Economic Behavior & Organization, Elsevier, vol. 182(C), pages 162-184.
8. Du, X. Can Environmental Regulation Promote High-Quality Economic Development?: Evidence from China. Econ. Anal. Policy 2023, 80, 1762–1771. [Google Scholar] [CrossRef]
9. Epede, Mesumbe Bianca & Wang, Daoping, 2022. "Global value chain linkages: An integrative review of the opportunities and challenges for SMEs in developing countries," International Business Review, Elsevier, vol. 31(5).
10. Eyraud, L. Why Isn’t South Africa Growing Faster? A Comparative Approach (No. 9-25); International Monetary Fund: Washington, DC, USA, 2009.
11. Govdeli, T. Economic growth, domestic savings and fixed capital investments: Analysis for Caucasus and central asian countries. Montenegrin J. Econ. 2022, 18, 145–153.
12. Guo, B.; Wang, Y.; Zhang, H.; Liang, C.; Feng, Y.; Hu, F. Impact of the Digital Economy on High-Quality Urban Economic Development: Evidence from Chinese Cities. Econ. Model. 2023, 120, 106194.
13. Guo, J.; Sun, Z. How Does Manufacturing Agglomeration Affect High-Quality Economic Development in China? Econ. Anal. Policy 2023, 78, 673–691.
14. Hao, Yu & Gai, Zhiqiang & Wu, Haitao, 2020. "How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 143(C).
15. Heidari Sarban, vakil (2013). Investigating the Factors Affecting Farmers' Empowerment in Ahar County Villages, Quarterly Journal of Geographic Space, 13, s 41, pp. 170-157. (In Persian)
16. Heidari Sarban, vakil and majnooni Tootatkhani, Ali (2017).explaining the role of information and communication technology (ICT) about social capacity of rural areas (case study: Meshgin-Shahr city), human settlements planning studies, 12(2), pp. 283-267. (In Persian)
17. Hosseininia, Gh., & Fallai, H. (2017). [Factors Affecting the Development of Rural Entrepreneurship: A Case Study on the Rural Areas of Manoojan County (Persian)]. Journal of Rural Researchs, 8(1), 22-37. http://dx.doi.org/10,.21859/jjr-08012.
18. Huwei Wen, Shuai Chen, and Chien-Chiang Lee, 2023. "Impact of Low-carbon City Construction on Financing, Investment, and Total Factor Productivity of Energy-intensive Enterprises," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
19. Jalo, Noor & Johansson, Ida & Kanchiralla, Fayas Malik & Thollander, Patrik, 2021. "Do energy efficiency networks help reduce barriers to energy efficiency? -A case study of a regional Swedish policy program for industrial SMEs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
20. Karishma Banga, 2022. "Impact of global value chains on total factor productivity: The case of Indian manufacturing," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 704-735, May.
21. Liu, Tie-Ying & Lee, Chien-Chiang, 2020. "Convergence of the world’s energy use," Resource and Energy Economics, Elsevier, vol. 62(C).
22. Liu, Y.; Han, L.; Pei, Z.; Jiang, Y. Evolution of the Coupling Coordination between the Marine Economy and Urban Resilience of Major Coastal Cities in China. Mar. Policy 2023, 148, 105456.
23. Molaee Hashjin, Nasrallah (2007). An Analysis of the Reviewing Requirements for Rural Development Planning Policies in Iran, Ahar Geographic Magazine,Seventh Year, No.17,40-20.
24. Osei, M.J.; Kim, J. Foreign direct investment and economic growth: Is more financial development better? Econ. Model. 2020, 93, 154–161.
25. Pian Shu & Claudia Steinwender, 2019. "The Impact of Trade Liberalization on Firm Productivity and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 39-68.
26. Pierluigi Montalbano & Silvia Nenci & Davide Vurchio, 2022. "Energy Efficiency and Productivity: A Worldwide Firm-level Analysis," The Energy Journal, , vol. 43(5), pages 93-116, September.
27. Rasekhi, B., Ghanbari Movahed, R., & Alibayghi, A. (2018).[Comparative analysis of agricultural entrepreneur ship in rural and urban areas of Kermanshah province (Persian)]. Journal of Rural Research, 9(3), 346-359, http://dx.doi.org/ 10.22059/jrur.2017.228470.1071
28. Salmani, Mohammad rezvani, Mohammad Reza; Pourtaheri, Mehdi, Wiszi, Farzad (2011). the role of seasonal labor migration in rural household livelihoods (Sarvabad city, Kurdistan province). Human Geography Research, No. 77. Pages 140-120. (In Persian).
29. Sayyed AliPoor, Seyed Khalil, Paydar, Abuzar and Sadeghi, Khadijeh (2014). A Modeling of Strategies for Realizing Sustainable Economics with Emphasis on Sustainable Security in Rural Areas (CSP Jazmurian-Southern Kerman), Geography and Development Magazine, 44 (Volume 14). 63-45). (In Persian)
30. Shahmoradi, M., Ehsanifar, T., Farahmand, F., Rostami, F., & Sahraie, M., (2019). [Surveying the Challenges in Realization of Rural Women's Business Ideas (Persian)]. Journal of Rural Research, 9(4), 552-563, http://dx.doi.org/ 10.22059/ jrur.2018.261886.1265.
31. Sharifzadegan, Mohammad Hossein (2003). Planning and Causes of Reducing the Effectiveness of Development Plans in Iran, Quarterly Journal of Agricultural Economics and Development, 11, 43 and 44, Ministry of Jihad-e-Sazandegi publications, Tehran. (In Persian)
32. Shen, L.; Chen, X.; Du, X.; Yang, Z. An Improved Method for Investigating Urban Municipal Infrastructures Carrying Capacity. Sustain. Prod. Consum. 2022, 29, 299–310.
33. Šubová, N.; Buleca, J.; Affuso, E.; Mixon, F.G., Jr. The link between household savings rates and GDP: Evidence from the Visegrád group. Post-Communist Econ. 2023, 2, 1–25.
34. Tendengu, S.; Kapingura, F.M.; Tsegaye, A. Fiscal policy and economic growth in South Africa. Economies 2022, 10, 204.
35. Tolliver, C.; Keeley, A.R.; Managi, S. Green bonds for the Paris agreement and sustainable development goals. Environ. Res. Lett. 2019, 14, 064009.
36. Tomiwa Sunday Adebayo & Sami Ullah, 2024. "Towards a sustainable future: The role of energy efficiency, renewable energy, and urbanization in limiting CO2 emissions in Sweden," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 244-259, February.
37. Wang, C.Y.; Xu, M.; Olsson, G.; Liu, Y. Characterizing of Water-Energy-Emission Nexus of Coal-Fired Power Industry Using Entropy Weighting Method. Resour. Conserv. Recycl. 2020, 161, 104991.
38. Wen Huwei & Chen Shuai & Lee Chien-Chiang, 2023. "Impact of Low-carbon City Construction on Financing, Investment, and Total Factor Productivity of Energy-intensive Enterprises," The Energy Journal, , vol. 44(2), pages 79-102, March.
39. Wen, Huwei & Li, Nuoyan & Lee, Chien-Chiang, 2021. "Energy intensity of manufacturing enterprises under competitive pressure from the informal sector: Evidence from developing and emerging countries," Energy Economics, Elsevier, vol. 104(C).
40. Wen, Huwei & Liang, Weitao & Lee, Chien-Chiang, 2022. "Urban broadband infrastructure and green total-factor energy efficiency in China," Utilities Policy, Elsevier, vol. 79(C).
41. Yan, Yunfeng & Wang, Ran & Zheng, Xiuxiu & Zhao, Zhongxiu, 2020. "Carbon endowment and trade-embodied carbon emissions in global value chains: Evidence from China," Applied Energy, Elsevier, vol. 277(C).
42. Yang, Bo & Liu, Baozhen & Peng, Jiachao & Liu, Xujun, 2022. "The impact of the embedded global value chain position on energy-biased technology progress: Evidence from chinas manufacturing," Technology in Society, Elsevier, vol. 71(C).
43. Yue Hua & Yue Lu & Ruili Zhao, 2022. "Global value chain engagement and air pollution: Evidence from Chinese firms," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 708-727, July.
44. Zhang, F.; Tan, H.; Zhao, P.; Gao, L.; Ma, D.; Xiao, Y. What Was the Spatiotemporal Evolution Characteristics of High-Quality Development in China? A Case Study of the Yangtze River Economic Belt Based on the ICGOS-SBM Model. Ecol. Indic. 2022, 145, 109593.
45. Zhou, Fengxiu & Wang, Xiaoyu, 2022. "The carbon emissions trading scheme and green technology innovation in China: A new structural economics perspective," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 365-381.
46. Zhou, Fengxiu & Wen, Huwei & Lee, Chien-Chiang, 2022. "Broadband infrastructure and export growth," Telecommunications Policy, Elsevier, vol. 46(5).
47. Zhou, Fengxiu & Wen, Huwei, 2022. "Trade policy uncertainty, development strategy, and export behavior: Evidence from listed industrial companies in China," Journal of Asian Economics, Elsevier, vol. 82(C).
48. Zhou, X.; Du, J. Does environmental regulation induce improved financial development for green technological innovation in China? J. Environ. Manag. 2021, 300, 113685.
49. Zhuqing Mao, 2022. "Global Value Chains (Gvcs) And Economic Growth: A Nonlinear Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 67(03), pages 985-1004, June.