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Distribution of power and economic rent in value networks
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Distribution of power and economic rent in value networks
Annotation
PII
S042473880008468-3-
DOI
10.31857/S042473880008468-3
Publication type
Article
Status
Published
Authors
Elena Ustyuzhanina 
Occupation: Head of Economics Department
Affiliation: Plekhanov Russian University of Economics
Address: Moscow, Russian Federation
Victor Dementiev
Occupation: Scientific concept adviser
Affiliation: CEMI RAS
Address: Nakhimovky prospect 47
Sergey Evsukov
Affiliation:
Plekhanov Russian University of Economics
CEMI RAS
Address: Russian Federation
Edition
Volume 56 Issue 1
Pages
5-17
Abstract

The paper examines factors that impact distribution of value added in global value networks. The authors measure the share of value added of each company using their own method (comparison of ROTA and average salaries) and test the most common assumptions about principles of value added distribution on three high tech knowledge-intensive industries: the civil aircraft industry, the automotive industry and the pharmaceutical industry. The most popular hypotheses, that network integrators and companies located at the ends of the smiling curve (developers of new products and firms controlling the market entry) have an advantage in the distribution of value added, proved wrong in the above-mentioned industries. Difference in salaries between countries is revealed to be the most important factor influencing distribution of value added in these networks. The second most important factor is a difference in production profitability and remuneration between industries. The degree of product’s uniqueness is another factor that has an increasing impact on distribution of value added, mostly on ROTA. 

Keywords
global value networks, value added distribution, Smiling curve, international labor division, globalization, aircraft production, motor industry, pharmaceutical industry
Acknowledgment
This study was supported by the Russian Foundation for Basic Research (project 18-010-00216).
Received
19.03.2020
Date of publication
20.03.2020
Number of purchasers
41
Views
3989
Readers community rating
0.0 (0 votes)
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S042473880008468-3-1 Дата внесения правок в статью - 13.02.2020
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References

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