A key component of economic globalization is the transnational production of goods and services. Global value chains and global production networks are two related analytical frameworks that have been developed to help understand the organization of such economic activity and its development implications. This chapter briefly reviews the creation of such frameworks and their contribution in terms of understanding the organization and governance of the global economy. We then explore the less-focused on dimensions of spatiality and territoriality, including through examples from research on India’s pharmaceutical and Philippines’ services industries. Current changes in the global economy have raised the stakes for understanding the shifting geographies of global production networks and engaging more closely with their territorial dimensions.
Jana M. Kleibert and Rory Horner
Rory Horner and Matthew Alford
While understanding the influence of private governance through global lead firms has been a defining feature of global value chain (GVC) analysis, the state has often been implicitly observed as part of the broader institutional context shaping GVCs. More recently, however, the state-GVC nexus has attracted more explicit attention. Drawing on insights from GVC research, the chapter highlights four roles of the state within GVCs: as facilitator, regulator, producer and buyer - and outlines key issues on the research agenda in relation to each role. While the facilitator role has received considerable attention and the regulator role is a growing focus, those of producer and buyer are relatively underexplored. The chapter concludes that the contemporary reformulation of economic globalization means the state-GVC nexus is, and will continue to be, especially significant in shaping development outcomes.