The Reshaping of Global Value Chains as a Megatrend of Modern Globalization

Andrey Alexandrovich Maltsev
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Andrey Alexandrovich Maltsev: Institute of Economics of the Ural Branch of the RAS, Ekaterinburg, Russia

Russian Foreign Economic Journal, 2024, issue 2, 87-103

Abstract: The article examines the role of global value chains (GVCs) as one of the most important actors of globalization. The contribution of GVCs to accelerating globalization in the 1980s-2000s is shown, with 80% of the increase in the share of world trade in global GDP from 13.7% in 1970 to 29.7% in 2018 due to the GVCs. The relationship between the deceleration of the globalization and the performance of GVCs is revealed, since the share of GVCs in world trade contracted from 52% in 2008 to 47% by 2015 being influenced by the natural limits of the growth of technological openness, increased global uncertainty and global polarization. The indirect export indicator demonstrates slowing exports within the GVCs. Based on GVC statistics, the average annual growth rate of indirect exports decreased from 9.7% in 2000-2010 to 3.7% in 2020-2019. It is assumed that the obvious slowbalization since the early 2020s is not the evidence of “running away” from globalization but is an indirect confirmation of the current reshaping of the GVCs. The phenomenon of “factoryless manufacturing” as the result of the soaring knowledge intensity growth in the global economy in recent decades is highlighted as one of the most important manifestations of the current redesigning of the GVCs. Challenges for developed, emerging economies and the GVCs in the conditions of “newbalization” or globalization 3.0 propelled by information technologies in the 2010s-2020s, are specified. The most important consequence of this transformation is the accelerated transition from cross border movement of goods to “factories” crossing borders.

Keywords: “factoryless manufacturing”; global value chains; “slowbalization”; world trade; world economy; “newbalization” (search for similar items in EconPapers)
JEL-codes: F15 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:alq:rufejo:rfej_2024_02_87-103

DOI: 10.24412/2072-8042-2024-2-87-103

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