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BUSINESS INFORM №3-2018

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8

Section: Globalization Processes in the Economy
UDC 339.9.01
Cherkas N. I.
The Theoretical Aspects of the Development of Global Production Networks and Value Chains: the New Paradigm of Globalization (p. 52 - 59)
The article is aimed at systematizing the contemporary perceptions of the changing paradigms of globalization and international competition as a result of the spread of global networks and value chains. The development of global value chains (GVC) occurred as a result of two distributions of globalization: (1) global competition is manifested at the level of sectors and companies (from the mid-nineteenth century) (2) the concept of trade in tasks arises (at the end of XX century). The publication analyzes the impact of globalization on the international competitiveness of both the EU and the developing countries in the trade of final products and tasks. The model takes into consideration differences in wages, technology gap and trade costs, and provides for assessing the comparative advantages of individual sectors or segments of GVC. Features of the conception of global production networks have been identified as: «imports for production» and «imports for exports», which define international competitiveness on the basis of creation of the intrinsic value added. It is determined that the competitiveness of the economy is determined by the country’s positions in the GVC, and the increase in productivity of companies depends on their involvement in the segments (tasks) with a high level of value added.
Keywords: «new paradigm» of globalization, international competitiveness, global value chains, trade in tasks.
Fig.: 5. Tabl.: 1. Bibl.: 16.

Cherkas Nataliia I. – Candidate of Sciences (Economics), Associate Professor, Candidate on Doctor Degree, Department of International Economics, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: [email protected]

Reference to this article:
Cherkas, Nataliia I. (2018) “The Theoretical Aspects of the Development of Global Production Networks and Value Chains: the New Paradigm of Globalization.” Business Inform 3:52–59.

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