Systematic rent in global value chains

Abstract

The theory of global value chains (GVCs) is one of the most extensive and promising theories in explaining the patterns and special features of the development of regional, national and international economies, which allows improving methods and models of strategic management of enterprises participating in GVCs. Based on the theory of systematic rent by Aleksey Gubar, we put forward a hypothesis suggesting that capital reproduction within GVCs is implemented through the system of economic mechanisms of rental relations. The proposed approach transcends the limitations of strategic management in the analysis of relational rents regarding the sources and mechanisms for forming dynamic competitive advantages of enterprises in the process of their interaction within value chains at different levels. The methodological framework includes theories of technological waves, rent and contracts, as well as the system-based approach to the analysis of qualitative and structural-dynamic characteristics of capital reproduction in GVCs. The research methods are economic modelling, statistical and graphical analysis. The study of processes and trends in capital reproduction within GVCs through the prism of the mechanism of systematic rent makes it possible to identify their patterns, peculiarities, forms and dynamics while concentrating on the major sources, stimuli and factors of development. We conclude that it is necessary to consider the systematic rent mechanism when framing business strategies and programs of state and regional development of the Russian economy within GVCs. At that, ignoring or misunderstanding rental economic mechanisms can cause serious errors in economic policy.

Keywords

• global value chain
• systematic rent
• capital
• economic mechanism
• strategy
• contract
• dynamic competitive advantage