IDEAS home Printed from https://ideas.repec.org/p/ssa/lemwps/2020-12.html
   My bibliography  Save this paper

The Power of Sectoral Geographical Centrality in Global Production

Author

Listed:
  • Panagiotis Iliopoulos
  • Giorgos Galanis
  • Ashok Kumar
  • Lilit Popoyan

Abstract

Power is a key component in understanding and analyzing global production and the governance structures of Global Value Chains. In this paper, we propose a novel analytical link between the power dynamics in GVCs and the network configuration of their respective production topology. Our proposed link is based on the notion of positional power according to which power is associated with the centrality of a sector with regards to the production process, the sector belongs to. Using global input-output data, we show that the network structure of global production is associated with the global distribution of profits among national economic sectors and, consequently, influences the power relations and thus the governance structures of supply networks. More specifically, we find a high correlation between the distribution of profits and a sectorùs position in global production, captured by its total strength centrality. Based on this, we provide a quantitative measure of positional power within global production and its governance structures.

Suggested Citation

  • Panagiotis Iliopoulos & Giorgos Galanis & Ashok Kumar & Lilit Popoyan, 2020. "The Power of Sectoral Geographical Centrality in Global Production," LEM Papers Series 2020/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  • Handle: RePEc:ssa:lemwps:2020/12
    as

    Download full text from publisher

    File URL: http://www.lem.sssup.it/WPLem/files/2020-12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cirillo, Pasquale, 2013. "Are your data really Pareto distributed?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(23), pages 5947-5962.
    2. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    3. Matthew Tonts & Paul Plummer & Michael Taylor, 2012. "Power, enterprise and employment growth in Australian small- and medium-sized manufacturing firms," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1239-1266, November.
    4. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    5. Engelbert Stockhammer, 2017. "Determinants of the Wage Share: A Panel Analysis of Advanced and Developing Economies," British Journal of Industrial Relations, London School of Economics, vol. 55(1), pages 3-33, March.
    6. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    7. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914.
    8. Tod Rutherford & John Holmes, 2008. "'The flea on the tail of the dog': power in global production networks and the restructuring of Canadian automotive clusters," Journal of Economic Geography, Oxford University Press, vol. 8(4), pages 519-544, July.
    9. Janina Grabs & Stefano Ponte, 2019. "The evolution of power in the global coffee value chain and production network," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 803-828.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Panagiotis (Takis) Iliopoulos & Giorgos Galanis & Ashok Kumar & Lilit Popoyan, 2020. "Network Configuration as a Measure of Power in Global Production Networks," Management Working Papers 19, Birkbeck Department of Management, revised Feb 2011.
    2. Marcel P Timmer & Sébastien Miroudot & Gaaitzen J de Vries, 2019. "Functional specialisation in trade," Journal of Economic Geography, Oxford University Press, vol. 19(1), pages 1-30.
    3. Giorgos Galanis & Ashok Kumar, 2021. "A dynamic model of global value network governance," Environment and Planning A, , vol. 53(1), pages 53-72, February.
    4. McWilliam, Sarah E. & Kim, Jung Kwan & Mudambi, Ram & Nielsen, Bo Bernhard, 2020. "Global value chain governance: Intersections with international business," Journal of World Business, Elsevier, vol. 55(4).
    5. Vincent FRIGANT & Martin ZUMPE, 2014. "The persistent heterogeneity of trade patterns: A comparison of four European Automotive Global Production Networks," Cahiers du GREThA (2007-2019) 2014-24, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Frigant, Vincent & Zumpe, Martin, 2014. "Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data," MPRA Paper 55727, University Library of Munich, Germany.
    7. Giorgos Galanis & Ashok Kumar, 2018. "A dynamic spatial model of global governance structures," Working Papers PKWP1804, Post Keynesian Economics Society (PKES).
    8. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    9. Andrea Coveri & Mario Pianta, 2019. "The Structural Dynamics of Income Distribution:Technology, Wages and Profits," Working Papers 1901, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    10. Xinyu Yang & Weidong Liu, 2022. "Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review," Land, MDPI, vol. 11(10), pages 1-14, October.
    11. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    12. Daniel Schuster & Ivo Mossig, 2022. "Power Relations in Multistakeholder Initiatives—A Case Study of the German Initiative on Sustainable Cocoa (GISCO)," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    13. Lilac Nachum, 2021. "Value distribution and markets for social justice in global value chains: Interdependence relationships and government policy," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 541-563, December.
    14. Matthew Alford & Margareet Visser & Stephanie Barrientos, 2021. "Southern actors and the governance of labour standards in global production networks: The case of South African fruit and wine," Environment and Planning A, , vol. 53(8), pages 1915-1934, November.
    15. Xiang Gao & Geoffrey J D Hewings & Cuihong Yang, 2022. "Offshore, re-shore, re-offshore: what happened to global manufacturing location between 2007 and 2014? [The gravity model]," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 15(2), pages 183-206.
    16. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    17. Xiaofei Chen & Enru Wang & Jianfeng Guo & Changhong Miao, 2021. "Location choice and spatial distribution of the electronic information manufacturing industry in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1410-1439, September.
    18. Chiara Bentivogli & Tommaso Ferraresi & Paola Monti & Renato Paniccià & Stefano Rosignoli, 2019. "Italian Regions in Global Value Chains: An Input-Output Approach," Politica economica, Società editrice il Mulino, issue 1, pages 55-94.
    19. Italo Colantone & Alessia Matano & Paolo Naticchioni, 2020. "New imported inputs, wages and worker mobility [Computing person and firm effects using linked longitudinal employer-employee data]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(2), pages 423-457.
    20. Ernesto Noronha & Premilla D’Cruz & Muneeb Ul Lateef Banday, 2020. "Navigating Embeddedness: Experiences of Indian IT Suppliers and Employees in the Netherlands," Journal of Business Ethics, Springer, vol. 164(1), pages 95-113, June.

    More about this item

    Keywords

    Global value chains; positionality; power relations; network theory.;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssa:lemwps:2020/12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/labssit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.