Abstract
This paper has critically documented a vast literature addressing the multi-layered outcomes associated with participating in global value chains (GVCs). In particular, this paper reviews and synthesizes the definitions and quantitative measures of one particular dimension of the GVC analysis that is two-fold: the economic and social upgrading. More specifically, we discuss the economic perspective of upgrading, which is usually associated with “moving into higher value-added stages”, and it is commonly assumed to be followed by positive spillovers regarding technology and productivity. This paper emphasizes the important diversity of definitions and measures within the GVC literature, considering it as a reflection, to a certain extent, of the absence of a systematic theoretical apparatus in the GVC literature. The paper concludes with some considerations on the role of policymakers in promoting social upgrading as an important topic in the GVC research agenda.
Highlights
The increasingly interconnected global economy has posed significant challenges to theorization in the field of economics
The central concept for the top-down view is “governance”, which focuses mainly on the power relationships between firms that set the parameter to other firms in the chain, and the key concept for the bottom-up view is “upgrading”, which is usually related to the possibility of moving up in the value chain and focuses on the strategies used by countries, regions or firms to maintain or improving their positions in the global economy (FREDERICK, 2014; GEREFFI; FERNANDEZ-STARK, 2011; GEREFFI; LEE, 2012)
The results indicate a notable variation across the four global value chains (GVCs), with economic upgrading revealing to be more common in complex sectors with a higher degree of technological sophistication, and economic downgrading in low-tech sectors
Summary
The increasingly interconnected global economy has posed significant challenges to theorization in the field of economics. It is usual to assess the concepts of both economic and social upgrading by using different measures under distinguished levels These different measures are applied to several case studies, challenging the possibility of extracting general conclusions about the outcomes of GVC participation. This two-fold dimension is consistent with the attempt to contribute to the organization of a formal theoretical apparatus within the GVC literature, given the notable diversity of definitions and measures.
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