Global Production Networks in the Regional Analysis Framework. Case of EU Automotive Manufacturing Periphery

GONZÁLEZ, GERMÁN HÉCTOR; SAPIR, ELENA; VASILCHENKO, ALEXANDER

Economy of Regions

Institute of Economics of the Ural Branch of RAS

Año: 2023 vol. 19 p. 230 - 243

2072-6414

The article dwells on theoretical distinguishing and practical contrasting of global value chains and global production networks concepts. In the study we aim at proving the hypothesis that GPN concept allows for a better identification of structural shifts in international production structures, as well as it reveals the regional patterns of cooperation. In the first section the main methodological constraints of GVC paradigm are specified. In addition, the reasons for an application of network-based approach to international production are outlined. The second section dissects EU automotive manufacturing to support the theoretical propositions. While comparing GVC and GPN quantitative toolkit, 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, our hypothesis has been proved. Specifically, betweenness centrality metric suggests that Chechia and Slovakia have immediately favored a positive effect of the entry into EU, whereas neither of the GVC indicators reveals such a shift. At the same time, 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. Our methodological cohesion of two sets of indicators advances furtherly the views on European regional core-periphery integration and automotive production networks dynamics. The findings may be the contribution to the decision-making on sectoral production networks launching and reconfiguration in Latin America or the European Union.