Rent and Surplus in the Global Production Network

Identifying 'Value Capture' from the South

Bibliographic Data

ID5672829
AuthorsSatyaki Roy (0000-0001-6767-266X, Institute for Human Development, corresponding author)
Year2017
Volume6
Issue1
Pages32-52
Publication date2017-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAgrarian South Journal of Political Economy A triannual Journal of Agrarian South Network and CARES (JOURNAL)
Journal identifiersISSN: 2277-9760 • E-ISSN: 2321-0281
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/2277976017721283
OpenAlexW2751905906
LanguageEN
Citations received4
References cited26

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

Economic rent · Economic system · Economics · Industrial organization · Market economy · Microeconomics · Political science · Politics · Realm · Surplus value · Asian Industrial and Economic Development · Global trade, sustainability, and social impact · Political Economy and Marxism