The Theoretical Foundations of the Development of Global Value Chains

Abstract

The article is aimed at defining, generalizing and systematizing the theoretical foundations of the development of global value chains (GVC). It is determined that the rapid development of modern technologies and the spread of globalization processes have led to transformational changes in the world economy, one of the key aspects of which was dissemination of the GVC. The genesis of development of the GVC theory and its basic conceptual apparatus are researched. The model of value chain and principles of its work are considered. Features and directions of countries’ participation in the global system of value chains are analyzed. The genesis of the GVC concept is generalized. The definition of the essence of the concept of «global value chain» is proposed, characterizations of its various types are considered. Forms of management of GVC and ways of organization of deliveries within their limits are defined. The advantages and risks of participating countries in the GVC are characterized. The main characteristics of research directions of global chains and networks are allocated. It is proved that researches of the theoretical foundations of functioning of GVC are important for determination of causal relations between peculiarities of development of economies of the world countries and the level of their participation in the GVC, and also are the basis of formation of both the State and international policy. The identified risks associated with the participation of companies and countries in the GVC should be taken into account when assessing the foreign economic security of the country, considering its inclusion in the value chains. It is particularly important to consider such risks in case of the countries with economies in transition, which include Ukraine.

Keywords

• value chains
• value added
• global value chains
• global production networks
• conception
• model
• classification
• advantages
• risks