Global Production Networks in the Regional Analysis Framework: Case of the EU Peripheral Automotive Manufacturing
DOI:
https://doi.org/10.17059/ekon.reg.2023-1-18Keywords:
global value chains, global production networks, input-output tables, domestic value-added, total factor productivity, betweenness centrality, EU periphery, automotive manufacturing, clusterisation, slowbalisationAbstract
Recent transformations following the global financial crisis of 2009, COVID-19 pandemic, supply chains disruptions and newest shocks have radically reshaped global production landscape and challenged comparative benefits of global production networks (GPN) vs global value chains (GVC) paradigms in international production analysis. The study tests the hypothesis that GPN concept allows for a better identification of structural shifts in international production structures while revealing regional patterns of cooperation. In the first section, the main methodological constraints of GVC paradigm are specified. Additionally, the reasons for the application of network-based approach to international production are outlined. The second section dissects the EU automotive manufacturing to support the theoretical propositions. While comparing GVC and GPN quantitative toolkits, the possible trade-off has been reached which is to calculate network indicators (transitivity, centrality, etc.) on the inter-country input-output tables. As a result, the hypothesis was confirmed. Specifically, betweenness centrality metric suggests that Czechia and Slovakia have immediately favoured a positive effect of the entry into the EU, whereas neither of GVC indicators reveals such a shift. Simultaneously, 2008 crisis is depicted via GVC indicators, whilst network metrics suggest no structural changes in the production system. These results corroborate to our theoretical juxtaposition of GVC/GPN approaches. The methodological cohesion of two sets of indicators further advances the views on European regional core-periphery integration and automotive production networks dynamics. At the same time, the findings may contribute to the reassessment of regional integration developments in Europe, as well as in Latin America and Eurasia.
References
Antras, P. & Chor, D. (2018). On the Measurement of Upstreamness and Downstreamness in Global Value Chains. Cambridge: National Bureau of Economic Research, 61. Retrieved from: http://www.nber.org/papers/w24185 (Date of access: 18.02.2022).
Baldwin, R. & Venables, A. (2010). Spiders and Snakes: Offshoring and Agglomeration in the Global Economy. Cambridge: National Bureau of Economic Research, 25. Retrieved from: http://www.nber.org/papers/w16611 (Date of access: 18.02.2022).
Beghin, J. C., Disdier, A.-C. & Marette, S. (2015). Trade Restrictiveness Indices in Presence of Externalities: An Application to Non-Tariff Measures. The Canadian Journal of Economics / Revue Canadienne d’Economique, 48(4), 1513-1536. DOI: https://doi.org/10/1111/caje.12157.
Beltramello, A., De Backer, K. & Moussiegt, L. (2012). The Export Performance of Countries within Global Value Chains (GVCs). OECD Science, Technology and Industry Working Papers, 2012(02). Retrieved from: https://www.oecd-ilibrary.org/docserver/5k9bh3gv6647-en.pdf?expires=1647172384&id=id&accname=guest&checksum=4606E72B44C244964B6E6F16E54489E3 (Date of access: 26.02.2022).
Bernard, A. B. & Moxnes, A. (2018). Networks and Trade. Cambridge: National Bureau of Economic Research, 31. Retrieved from: http://www.nber.org/papers/w24556 (Date of access: 18.02.2022).
Capello, R., Camagni, R., P., Cerisola, S. & Panzera, E. (2020). The Cultural Heritage — Territorial Capital nexus: theory and empirics. Il capitale culturale, 11, 33-59. ../../../Users/Владелец/Downloads/2020_CamagniCapelloCerisolaPanzera_IlCapCult (1).pdf
Cingolani, I., Iapadre, L. & Tajoli, L. (2018). International production networks and the world trade structure. International Economics, 153, 11–33. DOI: https://doi.org/10.1016/j.inteco.2017.10.002.
Coe, N. M. & Yeung, H. W. (2015). Global Production Networks: Theorizing Economic Development in an Interconnected World. Oxford: Oxford University Press, 256. DOI: https://doi.org/10.1093/acprof:oso/9780198703907.001.0001.
Coe, N. M., Dicken, P. & Hess, M. (2008). Global production networks: realizing the potential. Journal of Economic Geography, 8(3), 271–295. DOI: https://doi.org/10.1093/jeg/lbn002.
Coniglio, N. D., Vurchio, D., Cantore, N. & Clara, M. (2021). On the evolution of comparative advantage: Path-dependent versus path-defying changes. Journal of International Economics, 133. DOI: https://doi.org/10.1016/j.jinteco.2021.103522.
Criscuolo, C. & Timmis, J. (2018). GVCs and centrality: mapping key hubs, spokes and the periphery. OECD Productivity Working Papers, 12. DOI: https://doi.org/10.1787/d4a9bd6f-en.
Disdier, A. C. & Fugazza, M. (2021). A Practical Guide to the Economic Analysis of Non-Tariff Measures. Geneva: World Trade Organization, 101. Retrieved from: https://unctad.org/system/files/official-document/ditctab2019d4_book_en.pdf (Date of access: 26.02.2022).
Florensa, L. M., Márquez-Ramos, L., Martínez-Zarzoso, I. & Recalde, M. L. (2015). Regional versus global production networks: where does Latin America stand? Applied Economics, 47(37), 3938–3956. DOI: https://doi.org/10.1080/00036846.2015.1023938.
Frigant, V. & Zumpe, M. (2014). Are automotive Global Production Networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data. Bordeaux: Cahiers du GREThA, 35. Retrieved from: http://cahiersdugretha.u-bordeaux.fr/2014/2014-09.pdf (Date of access: 22.02.2022).
Galindo-Rueda, F. & Verger, F. (2016). OECD Taxonomy of Economic Activities Based on R&D Intensity. OECD Science, Technology and Industry Working Papers, 2016/04, 24. DOI: https://doi.org/10.1787/5jlv73sqqp8r-en.
Gereffi, G. & Fernandez-Stark, K. (2016). Global Value Chain Analysis: A Primer. Duke: Duke University, 34. Retrieved from: https://www.researchgate.net/publication/305719326_Global_Value_Chain_Analysis_A_Primer_2nd_Edition (Date of access: 22.02.2022).
Gerőcs, T. & Pinkasz, A. (2019). Relocation, standardization and vertical specialization: Core-periphery relations in the European automotive value chain. Society and Economy, 41(2), 171–192. DOI: https://doi.org/10.1556/204.2019.001.
Gorgoni, S., Amighini, A. & Smith, M. (2018). Automotive international trade networks: A comparative analysis over the last two decades. Network Science, 6(4), 571–606. DOI: https://doi.org/10.1017/nws.2018.18.
Haider, F., Kunst, R. & Wirl, F. (2020). Total factor productivity, its components and drivers. Empirica, 48(2), 283–327. DOI: https://doi.org/10.1007/s10663-020-09476-4.
Jessop, B. (2005). The Political Economy of Scale and European Governance. Tijdschrift voor Economische en Sociale Geografie, 96(2), 225–230. DOI: https://doi.org/10.1111/j.1467-9663.2005.00453.x.
Kokocinska, M. & Puziak, M. (2018). Regional Income Differences and their Evolution after EU Accession. The Evidence from Visegrad Countries. Journal of Competitiveness, 10(4), 85–101. DOI: https://doi.org/10.7441/joc.2018.04.06
Kolaczyk, E. D. & Csárdi, G. (2020). Statistical Analysis of Network Data with R. Heidelberg: Springer International Publishing, 228. DOI: https://doi.org/10.1007/978-3-030-44129-6.
Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99(3), 483–499. DOI: https://doi.org/10.1086/261763.
Macchiati, V., Brandi, G., di Matteo, T., Paolotti, D., Caldarelli, G. & Cimini, G. (2021). Systemic liquidity contagion in the European interbank market. Journal of Economic Interaction and Coordination, 17(2), 443-474. DOI: https://doi.org/10.1007/s11403-021-00338-1.
McWilliam, S. E., Kim, J. K., Mudambi, R. & Nielsen, B. B. (2020). Global value chain governance: Intersections with international business. Journal of World Business, 55(4). DOI: https://doi.org/10.1016/j.jwb.2019.101067.
Newman, M. (2018). Networks. Oxford: Oxford University Press, 780.
Pavlínek, P. (2021). Relative positions of countries in the core-periphery structure of the European automotive industry. European Urban and Regional Studies, 29(1), 59–84. DOI: https://doi.org/10.1177/09697764211021882.
Redding, S. (2002). Specialization dynamics. Journal of International Economics, 58(2), 299–334. DOI: https://doi.org/10.1016/s0022-1996(01)00169-6.
Schaeffer, S. E., Valdés, V., Figols, J., Bachmann, I., Morales, F. & Bustos-Jiménez, J. (2021). Characterization of robustness and resilience in graphs: a mini-review. Journal of Complex Networks, 9(2), 1-36. DOI: https://doi.org/10.1093/comnet/cnab018.
Shin, N., Kraemer, K. L. & Dedrick, J. (2012). Value Capture in the Global Electronics Industry: Empirical Evidence for the ‘Smiling Curve’ Concept. Industry & Innovation, 19(2), 89–107. DOI: https://doi.org/10.1080/13662716.2012.650883.
Stijepic, D. & Wagner, H. (2012). Impacts of Intermediate Trade on Structural Change. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.2134961
Vlčková, J. (2018). Visegrad countries in global production networks: Value creation, control and capture. Geographia Polonica, 91(4), 427–448. DOI: https://doi.org/10.7163/gpol.0129.
Wallerstein, I. (2011). The Modern World-System I: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century. Oakland: University of California Press, 440.
Yeung, H. W. C. & Coe, N. M. (2014). Toward a Dynamic Theory of Global Production Networks. Economic Geography, 91(1), 29–58. DOI: https://doi.org/10.1111/ecge.12063.
Zaclicever, D. & Pellandra, A. (2018). Imported inputs, technology spillovers and productivity: firm-level evidence from Uruguay. Review of World Economics, 154(4), 725–743. DOI: https://doi.org/10.1007/s10290-018-0323-7.
Zhang, J., Tang, W. & Hu, M. (2015). Optimal supplier switching with volume-dependent switching costs. International Journal of Production Economics, 161, 96–104. DOI: https://doi.org/10.1016/j.ijpe.2014.11.021.
