Toward a future discourse on global value chains

Abstract

PurposeThe discourse on global value chains (GVC) is undergoing a transformation in terms of its conceptualisation, theorisation and pragmatic applications. Today, the production systems have become more complex as global economic order continues to witness marked geo-economic manoeuvring. Thus, the direction of discourse on GVC ought to move from mere theoretical propositions toward becoming more evidence based. There have been recent studies that have used the governance and upgrading propositions by Gary Gereffi and others to seek quantitative evidence. This study aims to decipher the quantitative discourse on GVC and to set the emerging and future research agenda.Design/methodology/approachThrough a systematic literature review, the authors first analyse the quantitative studies on GVC carried out during the last two decades. The authors then outline a future research agenda and examine a few relevant modelling techniques that could potentially be used to solicit newer evidence in GVC research.FindingsThe authors categorise the quantitative discourse on GVC into three crucial themes, namely, GVC framework, GVC participation and position, environmental aspects and regionalisation in GVC. The most commonly used quantitative techniques are gravity model, panel data estimation, structural decomposition analysis and computable general equilibrium modelling.Originality/valueThis paper contributes to the GVC discourse in two ways. Firstly, the authors argue that the theoretical frameworks within the GVC discourse should be complemented by evidence-based quantitative studies. Secondly, the authors suggest potential modelling techniques that can be used on the emerging and future research agenda.