Political economy of Global Value Chains

Abstract

The objective of this article is to understand the determinants for the process of productive fragmentation in Global Value Chains (GVC) and what are the contributions of political economy to the understanding of the phenomenon. Neoclassical economics and the theoretical framework of GVCs emphasize the technical or technological reasons to explain the emergence of GVCs. Alternatively, this article proposes an interpretation of the political economy of GVCs. In this way, three stages of dispute for power and capital stimulate the development of GVCs, which is the result of interstate competition (for hegemony and dominance of peripheral regions), intercapitalist competition (between companies inside and outside the chains) and between classes, so as to reduce labor bargaining and increase the power of capital.

Keywords:
Global Value Chains; International productive fragmentation; Political economy; Intellectual property rights