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Rent and Surplus in the Global Production Network: Identifying ‘Value Capture’ from the South

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  • Satyaki Roy

Abstract

This article critically reviews the contemporary global production network (GPN) analyses from the perspective of Marxian political economy. 1 The GPN analyses focus on rents created at various nodes of the production network, and it ignores the fact that returns from interventions at specific stages in the value chain are not independent of the entire process of surplus creation and realization. Rents from innovation depend on the movement of the average capital in the particular industry and the way political economy of institutions allow certain ‘scarcities’ remain protected while others being drawn into the realm of competition. The article also argues that the GPN analyses hardly explain the dynamics of inclusion and exclusion of firms within such networks. It is argued that the dynamics is primarily governed by the relative position of individual capital and its technical composition with reference to the capital that assumes average levels of technology in that industry at a particular point of time.

Suggested Citation

  • Satyaki Roy, 2017. "Rent and Surplus in the Global Production Network: Identifying ‘Value Capture’ from the South," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 6(1), pages 32-52, April.
    • Handle: RePEc:sae:agspub:v:6:y:2017:i:1:p:32-52
    DOI: 10.1177/2277976017721283
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    References listed on IDEAS

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    1. James Heintz, 2006. "Low-wage manufacturing and global commodity chains: a model in the unequal exchange tradition," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(4), pages 507-520, July.
    2. Jyrki Ali-Yrkkö & Petri Rouvinen & Timo Seppälä & Pekka Ylä-Anttila, 2011. "Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 263-278, September.
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    4. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    5. Yuqing Xing & Neal Detert, 2010. "How the iPhone Widens the United States Trade Deficit with the People’s Republic of China," Trade Working Papers 23280, East Asian Bureau of Economic Research.
    6. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
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