Vertical specialisation or linkage development for agro-commodity value chain upgrading? The case of Malaysian palm oil

摘要: Abstract Developing countries have an opportunity to create and capture higher value added by participating in global chains (GVCs). Such potential has spawned recommendations for successive vertical specialisation but the applicability of strategy GVCs agricultural commodities is rarely scrutinised. This paper examines fundamental question whether participation upgrading agro-commodity conform if not, how why. The case study on Malaysian palm oil sector suggests that prone sectoral linkage development integration at local lead firms. State policies firm-specific actions since 1970s drove attainment capabilities which Malaysia did not possess originally segments across chain production more sophisticated goods services. Unique characteristics, dynamics historical settings explain trajectory. less applicable all GVC types than thought, policy research should delve into hindrances similar additive chains.