scholarly journals THE POLITICAL ECONOMY OF GLOBAL VALUE CHAINS RESTRUCTURING

2020 ◽  
pp. 62-73
Author(s):  
O. Rogach
Keyword(s):  
Multinational Enterprises ◽  
Industrial Revolution ◽  
New Technologies ◽  
Global Value Chains ◽  
Value Chains ◽  
The Political ◽  
Long Term Effects ◽  
International Production ◽  
Theoretical Approaches ◽  
The Us

The article analyzes the international production of multinational enterprises (MNEs). It presents some theoretical approaches to the analysis of international production, such as fragmentation theory, global value chains (GVCs) theory. The article argues that at the present stage of the world economy internationalization, there are two trends in the localization of MNEs global chains. The first trend indicates a slowdown of GVCs growth in the last seven years. The second trend characterizes the restructuring of GVCs. It indicates the backward movement of certain international production fragments to the MNEs home countries. Among the major factors that have slowed the growth of international MNEs production, the article analyzes the political instability and low economic dynamics of some FDI exporting countries. Changes in the location of global value chains are driven by technological, economic and geopolitical factors. Fourth industrial revolution, the robotization of production and new technologies for shale oil and gas in the US are changing the traditional determinants for GVCs localization. They have caused the relocation of many businesses from countries with the cheap labour to MNEs home countries. The article also highlights that the important factors of GVCs restructuring are the fiscal mechanisms implemented by the US administration, including tax reform. But the short-term and long-term effects of such measures differ significantly. Finally, the third important factor in the dynamics and restructuring of multinational enterprise network production is the geopolitical risk and political uncertainty. The trade war between the US and China has had a particularly significant impact on the current global value chains rebuilding.

scholarly journals MNE’s THEORY AND GLOBAL VALUE CHAINS

2019 ◽  
Author(s):  
O. Rogach
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Multinational Enterprise ◽  
Global Value Chains ◽  
Value Chains ◽  
Special Focus ◽  
International Production ◽  
Theoretical Approaches ◽  
Trade In Tasks ◽  
The One

This article analyzes a multinational enterprise (MNE) theories from the first pioneering papers of S. Hymer and the modern approaches to studying these institutions. A special focus is placed on the one of the research schools that studied the fragmentation of international production and the global value chain (GVCs) creation. In this context, various theoretical approaches to the study of modern global MNE networks are considered, the theory of trade in tasks and the macroeconomic approach to the evaluation of fragmentation effects. The paper argues that the concepts of MNEs international production and GVCs are interlinked, although not equal. Sometimes they are used as synonyms, but they characterize the contemporary process of internationalization from different perspectives. It shows the various types of organization of global value chains, such as the horizontal and vertical integration of production. Within such networking systems of multinational enterprises there are complex hierarchical relationships between individual participants and links. Technological slicing of production into separate fragments requires MNE to use not only own equity- controlled affiliates, but also the offshore production of partner firms.

scholarly journals INTERNATIONAL PRODUCTION OF MULTINATIONAL ENTERPRISES

2018 ◽  
pp. 70-81
Author(s):  
O. Rogach
Keyword(s):  
Multinational Enterprises ◽  
Multinational Firms ◽  
Global Financial Crisis ◽  
Global Value Chains ◽  
Value Chains ◽  
Foreign Direct Investments ◽  
International Firms ◽  
International Production ◽  
The World ◽  
The Global Financial Crisis

The article analyzes the essence and scale of multinational enterprises (MNEs) international production. The questions of methodology and terminology of MNEs definition, evolution of views as well as the main approaches on this issue in the world and domestic economic literature are considered. It is argued that the concept of multinationality is a key attribute of modern international firms, the main feature of creating value process in their global chains and one of the most important competitive advantages of these firms over national companies. The development of the international production fragmentation theory and the terminology of global value chains is shown, as well as theoretical macroeconomic assessments of fragmentation and global value chains on the participating countries. Also paper shows the role of multinational firms in the world economy, modern tendencies of international production, dynamics of new annual foreign direct investments inflow and other indicators of the international production of multinational enterprises. It is argued that the reasons for a different trends of such indicators dynamics are the peculiarities of MNEs foreign affiliates financial mechanism after the global financial crisis and the development of network outsourcing mechanisms for the externalization of international production.

Global Value Chains and Industrial Relations in the Global South: Social Upgrading Paths in Different Industries

2021 ◽  
Vol 24 (1) ◽  
pp. 214-236
Author(s):  
Christina Teipen ◽  
Fabian Mehl
Keyword(s):  
Value Chain ◽  
Industrial Relations ◽  
Global Value Chains ◽  
Value Chains ◽  
Value Chain Analysis ◽  
Theoretical Approaches ◽  
Chain Analysis ◽  
Governance Modes ◽  
Social Upgrading

Abstract The article compares social upgrading trends in four global value chains (apparel, automobiles, electronics and it services) and six developing and emerging economies (Bangladesh, Brazil, China, India, South Africa and Vietnam). It applies a framework, which combines analyses of industry-specific governance modes with recent theoretical approaches from the field of industrial relations. The empirical results show that prospects for social upgrading within similar segments of a particular value chain considerably depend on the national context. The article thus highlights the importance of integrating the role of national institutions into global value chain analysis in order to better explain variegated upgrading dynamics across different countries and industries.

scholarly journals Global value chains, large-scale farming, and poverty: Long-term effects in Senegal

Food Policy ◽  
2017 ◽  
Vol 66 ◽  
pp. 97-107 ◽  
Author(s):  
Goedele Van den Broeck ◽  
Johan Swinnen ◽  
Miet Maertens
Keyword(s):  
Large Scale ◽  
Global Value Chains ◽  
Value Chains ◽  
Long Term Effects

Refining of FDI motivations by integrating global value chains’ considerations

2015 ◽  
Vol 23 (1) ◽  
pp. 67-76 ◽  
Author(s):  
Axèle Giroud ◽  
Hafiz Mirza
Keyword(s):  
Multinational Enterprises ◽  
Global Value Chains ◽  
Global Scale ◽  
Policy Implications ◽  
Value Chains ◽  
Economic Activities ◽  
Content Type ◽  
Geographically Dispersed ◽  
Novel Approach ◽  
Investment Motivations

Purpose – The purpose of this paper is to show how the nature of the activities conducted by multinational enterprises globally and the governance modes are changing. Essentially, multinational enterprises (MNEs) structure and organize their activities in a more complex, fragmented and geographically dispersed manner. In this paper, the authors suggest that the evolution of MNEs and the rising importance of global value chains (GVCs) require a refinement of FDI motivations rather than a drastic change in the existing categories. The authors begin with a historical overview of evolving firms’ international strategies and FDI motivations, before developing arguments to support the view that the fine slicing of economic activities on a global scale, and the combination of governance modalities ought to be integrated into the presentation of investment motivations. The discussion ends with implications for governments and policymaking. Design/methodology/approach – This paper is a conceptual paper. Findings – Key suggestions to refine the presentation of investment motivations are presented, together with policy recommendations. Originality/value – This paper provides a novel approach to ways of refining investment motivations by integrating GVC considerations, and drawing policy implications from this process.

Firms’ Integration into Value Chains and Compliance with Adverse WTO Panel Rulings

2017 ◽  
Vol 17 (1) ◽  
pp. 1-31 ◽  
Author(s):  
AYDIN B. YILDIRIM
Keyword(s):  
Case Studies ◽  
Global Value Chains ◽  
Value Chains ◽  
Political Factors ◽  
The Us ◽  
Sources Of Variation ◽  
Political Conditions

AbstractThis article aims to account for the variation in the time it takes for WTO Members to bring compliance following adverse panel rulings. It seeks to answer the question: under what conditions do defendants swiftly implement adverse rulings of WTO panels? I demonstrate that defendants are more likely to comply without delay when the targeted measures involve firms that are integrated into regional and global value chains. When a dispute touches upon the interests of these firms and targets import-restricting measures, they are triggered to mobilize and press for compliance because they rely on foreign imports. In effect, the mobilization of these firms changes the domestic political conditions in favor of timely implementation. I show the plausibility of my argument in a comparative design with four case studies in which the US and Canada acted as defendants in WTO disputes. I control for a number of political factors and also consider legal sources of variation – i.e. the complexity of the form of implementation – that may impact WTO Members’ record of compliance.

scholarly journals A Review of Literature of Global Value Chains

2021 ◽  
Author(s):  
Sourish Dutta
Keyword(s):  
Large Scale ◽  
Value Added ◽  
Global Value Chains ◽  
Division Of Labour ◽  
Value Chains ◽  
Production Networks ◽  
International Production ◽  
International Borders ◽  
Home Based ◽  
Business Functions

The phenomenon of global value chains (GVCs) indicates a division of labour type production structure in which tasks and business functions are distributed among several companies, globally, or regionally (Grossman and Rossi-Hansberg 2008). The critical features of GVCs are therefore the international dimension of the production process and the "contractualisation" of buyer and seller relationships, often across international borders (Antras 2016). As a result, these international production networks are highly complex regarding geography, technology, and the different types of firms involved (from large retailers and highly large-scale mechanised manufacturers to small home-based production). Sometimes it may be impossible even to identify all the countries that are involved or the extent of their involvement (Gereffi and FernandezStark 2016). However, the recent development of OECD-WTO’s Trade-in Value Added (TiVA) data represents a fundamental step forward in understanding GVC trade. Grossman & RossiHansberg (2008, 2012) rightly point out that the different tasks, rather than sectors, define the specialisation of countries in the value chains.

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