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A dynamic spatial model of global governance structures

Author

Listed:
  • Giorgos Galanis

    (Goldsmiths, University of London)

  • Ashok Kumar

Abstract

This paper presents a novel understanding of the changing governance structures in global supply chains. Motivated by the global garment sector, we develop a geographical political economy dynamic model which reflects the interaction between bargaining power and distribution of value among buyer and producer firms. We find that the interplay between these two forces, in combination with the spatial specificities of global production, are necessary and sufficient to drive governance structures towards an intermediate position regarding their level of explicit coordination and power asymmetry.

Suggested Citation

  • Giorgos Galanis & Ashok Kumar, 2018. "A dynamic spatial model of global governance structures," Working Papers PKWP1804, Post Keynesian Economics Society (PKES).
    • Handle: RePEc:pke:wpaper:pkwp1804
    as

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    File URL: https://postkeynesian.net/media/working-papers/PKWP1804_E2hszGO.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Global value chains; global production networks; uneven development; disequilibrium dynamics; monopsony power;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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