International Political Economy: Trade Policy eJournal最新文献

{"title":"중국의 통상환경 변화와 국가별 상품 간 수출 대체가능성 연구 (Multidimensional Substitutability Measurement and Analysis: With an Application to Trade between China and South Korea)","authors":"Weonho Yeon, Sangbaek Hyun, Min Suk Park, Hyo-jin Lee, Yunmi Oh","doi":"10.2139/ssrn.3911737","DOIUrl":"https://doi.org/10.2139/ssrn.3911737","url":null,"abstract":"Korean Abstract: 최근 중국을 둘러싼 통상환경의 변화가 다이내믹하게 전개되고 있다. 이러한 변화는 한ㆍ중 무역구조에 직간접적으로 영향을 미칠 것으로 전망된다. 이에 본 연구에서는 향후 우리나라의 대중 수출품이 중국산 또는 외국산 제품에 의해 대체될 수 있는 가능성에 주목하고, 우리 수출품의 대체가능성 분석을 위한 새로운 정량 분석 방법론을 구축하였다. 최근 중국 통상환경의 중요한 대외적 변화로 미ㆍ중 통상 갈등을 가장 먼저 꼽을 수 있다. 특히 한국과 같이 중국과 글로벌 공급망(GVC)에서 분업 구조를 이루면서 미국에 최종 제품을 판매하는 국가에서는 미ㆍ중 갈등이 더욱 큰 불안요인으로 작용하고 있다. 한국산 대중 수출품의 대체가능성이라는 측면에서 보았을 때 미ㆍ중 갈등은 다양한 경로를 통해 영향을 줄 수 있는데, 그중 중요한 이벤트가 미ㆍ중 양국간의 1단계 무역합의이다. 대내적 변화로는 중국의 산업 고도화 전략이 중요하다. 세계의 공장으로 불리던 중국은 단순 가공무역을 담당하던 자국의 GVC 내 역할 및 위치를 조정하기 위해 기술의 발전과 혁신을 통한 국산화율 제고와 산업구조 고도화 전략을 추진해 왔다. 2018년 미ㆍ중 통상 분쟁이 본격화되면서 미국의 중국 산업 및 기술 고도화에 대한 견제가 심화되었고, 이에 대한 반작용으로 중국의 산업 고도화 전략은 경제ㆍ산업 측면을 넘어 국가 안보 차원에서 고려되기 시작했다. 핵심 기술 및 부품의 국산화율 제고전략이 강화되었으며, 독자적인 공급망을 구축하는 것을 목표로 추진되고 있다. 이러한 중국의 산업 고도화와 수입 대체전략 추진으로 인해 한국산 대중 수출품이 중국산 제품으로 대체되는 것에 대한 우려가 커지고 있는 상황이다. 이에 제2장에서는 최근 전개되고 있는 중국 통상환경 변화의 대내외 요인을 구체적으로 정리하였다. 대외적 요인으로 미ㆍ중 간 1단계 무역 합의의 주요 내용과 이행 현황을 살펴보고, 대내적 요인으로 중국정부가 국산화율 제고 및 자주적 공급망 구축을 목적으로 추진하는 수입 대체전략을 살펴보았다. 제2장은 제3장에서 구축한 다차원적 방법론이 왜 필요한지 필요성을 제기하는 역할과 함께 제4장 사례 분석의 배경을 제시해준다. 제3장은 본 연구의 다차원적 수입 대체화지수 모델을 설명하였다. 먼저 다차원적 대체가능성지수(MSI: Multidimensional Substitutability Index) 도출의 기본 구조를 제시한 Alkire-Foster(AF) 모델을 살펴보고, AF 모델을 토대로 Yang-Yeon(YY) 모델을 새롭게 구축하여 다차원적으로 제품별 수입 대체가능성을 파악할 수 있는 방법론을 제시하였다. 제4장에서는 제3장에서 도출한 YY 모델을 바탕으로 실제로 우리나라의 대중 수출품이 어떠한 영향을 받는지 사례 분석을 하였다. 특히 제2장에서 정리한 미ㆍ중 간 1단계 무역 합의와 중국의 수입 대체전략 추진이 한국산 대중 수출품에 어떠한 영향을 미칠지 YY 모델을 통해 도출한 MSI를 바탕으로 분석하였다. 마지막 제5장에서는 YY 모델의 필요성과 YY 모델 분석 결과를 요약하고, 정책적 시사점을 제시했다. YY 모델은 미ㆍ중 1단계 무역 합의의 경우 우리나라 대중 수출품에 큰 영향을 미치지 못할 것으로 예측했다. 이는 한국 대중 수출의 피해에 대한 과도한 우려와 공포감보다는 앞으로 다차원적 대체가능성 지수(MSI)와 같은 정량적 방법론을 활용하여 보다 객관적이고 종합적인 판단을 토대로 대비할 필요가 있다는 점을 시사한다. 다만 YY 모델은 중국 산업 고도화 정책의 경우 한국의 대중 수출에 있어 장기적으로 주요한 위협요인으로 작용할 것으로 예측했다. 특히 범용 제품의 대체가능성이 높게 나타났는데, 이는 중국 제조업의 고도화에 따라 기술 수준이 낮은 한국산 제품은 결국 중국산으로 대체될 것임을 시사한다. 더욱 우려되는 점은 중국의 전략적 신흥산업이나 과학기술 혁신의 대상이 되는 산업과 제품 중 신재생에너지, 배터리, 반도체, 전기차 관련 제품의 경우 중장기적으로 한국산 제품을 대체할 것으로 나타났을 뿐만 아니라 단기간 내에도 대체가능성이 높게 나타났다는 점이다. 중국 산업 고도화 전략에 대한 한국의 대응은 한ㆍ중 간 비교우위를 유지하기 위해 한국의 산업ㆍ기술 경쟁력을 고도화하는 것이다. 그러나 한국의 현실을 고려하였을 때 모든 분야에서 경쟁력을 유지하기 어려운 상황이기 때문에, 4차 산업혁명 시대의 주요 산업으로 발전할 분야를 선정하여 선택과 집중이 필요하다. 특히 본 연구에서 새롭게 구축한 YY 모델과 다차원적 대체가능성지수(MSI)가 중국과의 경쟁이 심화될 것으로 보이는 분야를 선별하고, 우리의 정책적 지원 대상과 우선순위를 결정하는 데 유용하게 활용되기를 바란다. English Abstract: Recent changes in the trade environment surrounding China are developing dynamically. These changes are expected to directly or indirectly affect the Korea-China trade structure. Therefore, in this study, focusing on the possibility that Korea’s exports to China could be replaced by Chinese or foreign products in the future, we establish a new quantitative analysis methodology to analyze the level of substitutability of Korean exports. One of the most important external changes in China’s trade environment is the U.S.-China trade conflict. In particular, in countries such as Korea that export final products to the U.S. while forming a division of labor with China in the glob","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"16 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75919386","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Who Benefits From the Challenges of the Chinese Economy and the Role of Georgia?","authors":"Davit Shatakishvili","doi":"10.17265/1537-1514/2021.03.002","DOIUrl":"https://doi.org/10.17265/1537-1514/2021.03.002","url":null,"abstract":"During the coronavirus pandemic, international companies operating in China intensified discussions about relocating their businesses to another country. This has caused by the closed borders and virtually stagnant economy. At the same time, companies operating in different countries have clearly seen how dependent they are on Chinese production and have actively started working to diversify their supply chains. However, the challenges for companies operating in China did not start only after the pandemic and it has a deeper basis. The aim of the paper is to review the main factors that pushed international businesses to leave one of the most attractive markets for manufacturing. In addition, the paper pays an attention to the efforts, opportunities and prospects of those countries that are trying to appear as an “alternative China” to the world. Finally, the article analyzes Georgia’s chances in global trade and manufacturing industry. The economies of the countries are closely linked to each other and any decision has a wider economic impact. To evaluate current circumstances and make accurate predictions, it is necessary to see them in a broader context.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"40 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88924685","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Socio-Economic Impact of Brexit on CANZUK and the Anglosphere in Times of Corona: The Case of Canada, Australia and New Zealand","authors":"D. Kohnert","doi":"10.2139/ssrn.3854401","DOIUrl":"https://doi.org/10.2139/ssrn.3854401","url":null,"abstract":"ABSTRACT & RESUME & ZUSAMMENFASSUNG : Although Britain has been one of the hardest hit among the EU member states by the corona pandemic, Boris Johnson left the EU at the end of 2020. Brexit supporters endorsed the idea of CANZUK, i.e. a union between the UK, Canada, Australia and New Zealand. The CANZUK was embedded in a vision of the revival of the olden days of Great Britain and its role in the ‘Anglosphere’, dating back to World War II and 19th-century British settler colonialism. It is rather doubtful whether the CANZUK members can realize Boris Johnson’s vision of prosperous trade in the ‘Anglosphere’. Besides, there are many open questions, notably on the overall effect of Brexit on CANZUK concerning the socio-economic impact of the global Corona crisis. Last, but not least, will the relative weight of the UK vis a vis other global players like China and India diminish in the medium and long run. After all, the new global focus of international trade will be reallocated from the Atlantic (America and Europe) to the Asian Pacific region, the key player in world economies to come. --------------------------------------------------------------------------------------------------------------------------------- RESUME : Bien que la Grande-Bretagne ait ete l'un des Etats membres les plus durement touches par la COVID-19 pandemie, Boris Johnson a quitte l'UE fin 2020. Les partisans du Brexit ont approuve l'idee de CANZUK, c'est-a-dire, une union entre le Royaume-Uni, le Canada, l'Australie et Nouvelle-Zelande. Le CANZUK s’inscrivait dans une vision de la renaissance des anciens temps de la Grande-Bretagne et de son role dans « l ’Anglosphere », datant de la Seconde Guerre mondiale et du colonialisme des colons britanniques du XIXe siecle. Il est assez douteux que les membres de CANZUK puissent revaloriser la vision de Boris Johnson d’un commerce prospere dans « l’Anglosphere ». En outre, de nombreuses questions restent ouverts, notamment sur l'effet global du Brexit sur CANZUK par rapport a l'impact socio-economique de la COVID-19 crise mondiale. Enfin, le poids relatif du Royaume-Uni par rapport a d'autres acteurs mondiaux, comme la Chine et l'Inde, diminuera a moyen et long terme. Apres tout, la nouvelle orientation mondiale du commerce international sera reaffectee de l'Atlantique (Amerique et Europe) a la region Asie-Pacifique, l'acteur cle de l’economie mondiale a venir. ---------------------------------------------------------------------------------------------------------------------------- ZUSAMMENFASSUNG : Obwohl Grosbritannien von der Corona Ppandemie unter den EU-Mitgliedstaaten mit am starksten betroffen war, verlies Boris Johnson die EU Ende 2020. Die Befurworter des Brexit unterstutzten die Idee eines CANZUK Handelsvertrages, d.h. einer Union zwischen Grosbritannien, Kanada, Australien und Australien Neuseeland. CANZUK war eingebettet in eine Vision der Wiederbelebung der alten Tage Grosbritanniens und seiner Rolle in der „Anglosph","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"4 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82034225","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Regional Trade Integration and Input Sourcing Patterns of Multinational Enterprise Plants: Evidence from the ECFA","authors":"Yuting Huang, Bingjing Li","doi":"10.2139/ssrn.3854355","DOIUrl":"https://doi.org/10.2139/ssrn.3854355","url":null,"abstract":"This paper studies the impacts of regional trade integration on the input sourcing patterns of firms engaging in multinational production. We examine the responses of Taiwanese MNC affiliates in mainland China around the time of a single event --- the signing of the Economic Cooperation Framework Agreement (ECFA) between the Mainland and Taiwan in June 2010. Using data on firm-level ownership linkages in conjunction with transaction-level trade flows between 2006 and 2015, we find strong evidence that in response to input tariff reductions, firms increased imports not only from members but also from non-member trade partners. The scale effect through the demand response to lower input costs appears to dominate the direct substitution effect from the enhanced trade relation across the Strait, leading to a trade creation effect outside the integrated bloc. Moreover, to a large extent, the trade created outside the bloc appears to be contained within multinationals' organizational boundary. In particular, for contract-intensive products, firms mainly increased sourcing from related parties. The findings suggest that MNC production networks strengthen the trade creation effect of regional trade agreements by reducing contractual frictions and search frictions along input-output linkages.<br>","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"69 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89076965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Role of Human Rights and Environmental Due Diligence Legislation in Protection Women Migrant Workers in Global Food Supply Chains","authors":"D. Augenstein, C. Macchi","doi":"10.2139/ssrn.3847676","DOIUrl":"https://doi.org/10.2139/ssrn.3847676","url":null,"abstract":"The research policy study examines the role of human rights and environmental due diligence legislation in protecting women migrant workers in global food supply chains. It considers in detail a recent proposal by the European Parliament for a European Directive on Corporate Due Diligence and Corporate Accountability.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"44 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76846680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Competitive Neutrality of State-owned Enterprises in China's Steel Industry: A Causal Inference on the Impacts of Subsidies","authors":"Mariko Watanabe","doi":"10.2139/ssrn.3538075","DOIUrl":"https://doi.org/10.2139/ssrn.3538075","url":null,"abstract":"This study investigates whether subsidies to state-owned enterprises (SOEs) in China's steel industry are distorting market competition. The Subsidy and Countervailing Measures Agreement of the World Trade Organization defines ``specific'' and ``harmful'' subsidies as being subject to discipline because they distort the allocation of resources. During a recession in the steel industry between 2008 to 2015, Chinese firms produced excessively and exported aggressively at a lower price. This study hypothesized and tested that subsidies given by local governments to specific SOEs with undefined conditions softened the budget constraints of these SOEs. Using data from the financial statements of listed steel and iron firms and other relevant sources, I find that firms with operating deficits received subsidies that were large enough to compensate for their deficits, and it prolonged the deficit in the next year. Counter-factual simulation based on demand and supply functions revealed that rescued SOE significantly expanded output in 2014 to 2015 compared to the case if no rescue via subsidy. The preferential treatment of these specific SOEs induced them to overproduction and lowered market prices, harming competition in the market.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"2 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89458335","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Higher-Education Expansion, Human-Capital Supply, and the Rising Domestic Content in China’s Exports","authors":"Degang Li, Ming Li, Jiansuo Pei","doi":"10.2139/ssrn.3840699","DOIUrl":"https://doi.org/10.2139/ssrn.3840699","url":null,"abstract":"In sharp contrast to the general downward trend around the globe, in China the domestic content in exports has been steadily increasing. The determinants that drive this outstanding result are hotly debated. However, there still lacks a clear causal inference on the determinants of the rising domestic content in China’s exports. This study uses the expansion of higher education that has taken place in China since 1999 as a \"quasi-natural experiment\" to directly examine its causal effects on the increasing domestic content in Chinese exports. We use the difference-in-difference specification and find that the availability of high-quality human capital has enabled the domestic production of high-quality industrial inputs that substitute for imported intermediates. According to our estimation, the human-capital supply shock can explain roughly one-half of the increase in the domestic content in China's processing exports. This means that domestic reform can be an important driving force for China to capture more domestic value added in its exports, which also serves as an important policy lesson that other developing economies can learn. Through this new perspective, we offer a first look at how behind-the-border policies affect the competitiveness of industries in a globalized world.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"416 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76624291","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Eastern Promise: Assessing the Future of UK-India Trade","authors":"Institute of Economic Affairs Submitter","doi":"10.2139/ssrn.3850596","DOIUrl":"https://doi.org/10.2139/ssrn.3850596","url":null,"abstract":"India is at a crossroads. As the UK Prime Minister prepares to meet Indian leaders virtually, he promises an Enhanced Trade Partnership, possibly leading to a full Free Trade Agreement (FTA). There are important commercial reasons for this agreement, but more importantly, there are powerful geopolitical reasons. India could be brought into an alignment of nations, including the CPTPP members, as a bulwark against the negative impact of China’s market distortions and security policies. The UK may just have the right combination of offensive and defensive flexibility to be able to do a deal with India. The contours of that deal are emerging and involve key UK asks, such as financial services and legal services access, as well as Scotch whisky tariff reduction, and key Indian asks, such as movement of natural persons supplying services and the UK committing not to impose bans on Indian agriculture in violation of the WTO SPS agreement. There is a developing alignment of nations, which collectively promote pro-competitive regulation where countries interact with each other through equivalence and mutual recognition as opposed to regulatory harmonisation. India has to choose whether to align with these nations or others, such as China, which have a very different model. There are strong geopolitical reasons for India to join this grouping – which could be started with an FTA with the UK – relating to its difficult relationship with China and its need to secure support in the Indian Ocean. However, a number of obstacles remain for this future to be reached. India has recently taken actions against the property rights of foreign investors. Property rights form the bedrock of economic systems that leverage the forces of competition to generate economic growth. But India’s market signals on property rights are negative and risk undermining its global reputation and potential. When the Prime Minister meets the Indian PM, he should make it clear that while the UK welcomes a deeper relationship with India, this will depend on whether India endorses, in both word and deed, property rights protection, market competition, and open trade.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75567758","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Domino Theory of Regionalism Revisited in an Era of Deep Integration: The Role of Homogeneity/Heterogeneity in Institutions","authors":"Renliang Liu, T. Stengos, Yiguo Sun","doi":"10.2139/ssrn.3808871","DOIUrl":"https://doi.org/10.2139/ssrn.3808871","url":null,"abstract":"This paper proposes that country-pairs sharing homogeneity in domestic institutions tend to sign preferential trade agreements (PTAs) interdependently, and such an interdependence effect decreases with institutional differential. Using spatial econometrics, we take democracy and economic freedom as fundamental components of the spatial weight matrix. The baseline results support our hypothesis from both the panel data over 1996 to 2017 through a probit model and the cross-sectional data through a spatial autoregressive probit model. We also employ a compound spatial weight matrix to account for the institutional differential and geographical distance simultaneously, which confirms the role of domestic institutions in the evolution of PTAs. Our findings are robust to the correction of potential endogeneity in the spatial weight matrix, and we provide not only novel evidence for the spatial effect of institutional differential on the domino-like spread of PTAs, but also some insights on the relationship between regionalism and multilateralism.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89622264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Contest for Value in Global Value Chains: Correcting for Distorted Distribution in the Global Apparel Industry","authors":"Lilach Nachum, Yoshiteru Uramoto","doi":"10.4337/9781800882157","DOIUrl":"https://doi.org/10.4337/9781800882157","url":null,"abstract":"Who captures the value created in global supply chains? How should gaps in value capture among participants be amended and by whom? Focusing on the global apparel supply chain and employing value creation as a yardstick for evaluation of value capture, we study the contests for value among global brands, manufacturers, labor, and consumers of the final output. We find misalignments between value creation and value capture at each of these contests, and posit that the failure of both markets and governments to distribute GVC value adequately calls for different mechanisms to distribute value. We suggest that the interdependencies germane to the co-specialized nature of GVCs give participants power to create markets for social justice. In this ‘market’ behavior that drives outcomes towards adequate value distribution is economically rewarded. These dynamics turn GVCs into their own de-facto ‘regulators’ with the power to self-correct for distributional distortions.","PeriodicalId":14394,"journal":{"name":"International Political Economy: Trade Policy eJournal","volume":"21 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76504718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}