Mark Dallas | Union College, Schenectady (original) (raw)

Papers by Mark Dallas

Power' has been a foundational concept in examining global value chains and production networks f... more Power' has been a foundational concept in examining global value chains and production networks for understanding patterns and dynamics in the global political economy. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years given the proliferation of new GVC frameworks, which extend beyond dyads of transacting firms or firm-state linkages, to incorporate other stakeholders and mechanismsincluding NGOs, labor unions, standards and conventions. In this paper, we propose a typology for the varied meanings and usages of power in GVCs. We delineate two principal dimensions of power: transmission mechanisms-direct and diffuse; and arena of actors-dyads and collectives. Combined, these two dimensions yield four ideal types of power exercised in GVCs: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.

Review of International Political Economy, 2019

* This version of the article has been accepted for publication and undergone full peer review bu... more * This version of the article has been accepted for publication and undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the publisher's final version AKA Version of Record.

SSRN Electronic Journal, 2013

ABSTRACT

World Development, 2014

ABSTRACT

World Development, 2021

Shortages of critical medical supplies during the COVID-19 pandemic have turned global value chai... more Shortages of critical medical supplies during the COVID-19 pandemic have turned global value chains (GVCs) in personal protective equipment (PPE) into a political lightning rod. Some blame excessive outsourcing and foreign dependency for causing shortages, thus urging greater state intervention; others applaud GVCs for their flexibility and scaling up of production, while blaming states for undermining GVC operations. Using policy process-tracing and monthly trade data of seven PPE products across the US, Europe, China and Malaysia, this paper goes beyond the binary debate of either the ‘failure’ or ‘success’ of GVCs to show when and under what conditions states interacted with GVCs to produce mixed outcomes in provisioning countries with PPEs. We identify interactions between the type of state intervention and two key structural features of GVCs – geographic distribution of production and technological attributes of the product. Conceptually, the paper demonstrates the mutual constraints of states and GVCs, and highlights structural factors involved in the relationship. Looking to the future of GVCs, we caution against wholesale declarations that GVCs should be abandoned or maintained, instead concluding that paying attention to GVC structure, states and their interactions are crucial.

Review of International Political Economy, 2019

Power has been a foundational concept in global value chain (GVC) research. Yet, in most GVC scho... more Power has been a foundational concept in global value chain (GVC) research. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years as GVC research has proliferated beyond dyads of transacting firms or firm-state linkages and incorporated other stakeholders and mechanisms such as NGOs, labor unions, standards, norms and conventions. In this article, we propose a typology for the varied meanings and usages of power in GVC governance. We delineate two principal dimensions: transmission mechanisms-direct and diffuse; and arena of actors-dyads and collectives. Combined, these two dimensions yield four ideal types of power in GVC governance: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.

The fragmentation of international production raises a host of problems in our ability to measure... more The fragmentation of international production raises a host of problems in our ability to measure and understand the international economy. Global value chains is one leading approach, but scholars point to several limitations, most prominently aggregating from firm-level observations to national development. This paper develops novel measurements by utilizing a unique Chinese transactional trade database, which records every import and export transaction. It applies them to GVC theory to help resolve these limitations, build bridges to other theoretical approaches, make aggregate estimations of GVC-organized trade, and raise questions about the foundations of China’s manufacturing and export prowess.

Abstract Since the end of the Cold War, there has been an extraordinary increase in the share of... more Abstract
Since the end of the Cold War, there has been an extraordinary increase in the share of foreign direct investment (FDI) going to developing countries, and political scientists have taken notice. Research has focused on institutional factors, in particular their importance in establishing credible commitments. However, in focusing on institutions, the investors themselves – the multinational enterprises (MNEs) – are largely ignored. This is because the literature models and measures FDI as bilateral economic flows between countries, rather than conceptualizing it as networks of actors, with strategies, goals and the capacity to organize international production. We are missing half the story.

This paper focuses on China, the most successful, large developing country FDI host in absolute terms and relative to its large economy. In the general and China-specific FDI literatures alike, China presents a string of anomalies in both aggregate inward FDI and when it is decomposed, including unusual allocations across industries, MNE modes of entry and by country of origin. Almost without exception, China’s domestic institutions serve as the principal explanations, including ones based on credible commitments.

This paper reconsiders these anomalies through the lens of MNE organization – specifically, their fragmentation of global production through vertically specialized production networks. Using disaggregated and nested data of industries, sub-industries, firms and a unique database of millions of individual trade transactions, the paper inductively re-constructs Chinese statistical data to uncover very consistent patterns of inward FDI that reveals an underlying MNE organizational logic in the restructuring of East Asian production, for which institutional arguments and market forces are unable to account. More importantly, in contrast to institutional accounts which offer diverse explanations for the anomalies, a MNE organizational approach parsimoniously offers leverage across them. By examining the international economy through the reconstruction of disaggregated national data, we can learn something about China, East Asia and the organization of the international economy.

Review of International Political Economy, 2015

Over the past several decades, firms have de-verticalized and internationalized increasingly comp... more Over the past several decades, firms have de-verticalized and internationalized increasingly complex manufacturing and service functions, a phenomenon studied across the social sciences. However, the disciplines disagree over whether the fragmentation of production is substantively novel, requiring amendments to trade theory, or is simply a secular deepening of the international division of labor. Some economists view it as "just trade," driven by well-known actor-less determinants, such as factor endowments, technology, and returns to scale, while more recent firm heterogeneity trade theories consider firm behavior. By contrast, other heterodox social science approaches differ by focusing on the strategic actions of firms and sector-specific governance as independent drivers which "govern" trade and determine the division of value between countries. This paper develops novel measurements by utilizing unique transactional trade data -the raw firm-level trade transactions that comprise standard inter-country trade statistics -on 439 of China's largest exporters in eighteen sub-sectors of the electronics and light industries, to examine whether trade is heterogeneously governed in ways theorized by the global value chains (GVC) literature. It finds substantial empirical support for GVC-governed trade, and advances both GVC and firm-centric trade theory along several fronts.

Abstract – International fragmented production – the de-verticalization, de-agglomeration and int... more Abstract – International fragmented production – the de-verticalization, de-agglomeration and internationalization of firms and industries – poses serious challenges to our ability to accurately measure and conceptualize the international economy. Studied across many disciplines, including economics, sociology, geography and international business, it has generated a variety of empirical and conceptual approaches, oftentimes incongruous, and each with its own policy implications. Due to inter-disciplinary differences and infrequency of communication, there has been no explicit attempt either to delineate the principal junctures of differentiation between literatures, or the emerging areas of overlap and collaboration. This paper identifies three important analytic dimensions by which international fragmentation is differentiated in data collection, measurement, conceptualization and policy prescription: the status of firms, industrial sector organization, and the scope of inter-firm relationships. It finds many important instances of disciplinary literatures relaxing underlying assumptions and adapting new methodologies, thereby opening important areas of inter-disciplinary convergence.

In studies of the fragmentation and internationalization of production, most value chain approach... more In studies of the fragmentation and internationalization of production, most value chain approaches consider the inter-firm balance of power as the critical dynamic in development. With the firm as the primary unit of analysis, research long held out two promises: first, bridging the 'micro-macro gap' in development theory, meaning making valid inferences from micro-level actors (firms) to macro-sociological outcomes; and second, reconciling its firm-level organizational approach with institutionalism. This paper argues, first, that the literature is artificially constrained in bridging the micro-macro gap due to its delimited conceptualization of 'power,' based on the 'agentic-strategic' behavior of firms. It argues for broadening the notion of power to bridge the levels of analysis, based on the concept of 'emergence.' Second, while institutional critics are correct in criticizing value chain scholarship for its neglect, this paper finds that the effects of institutions are not as consistent or determinative as suggested, and hence, it seeks to expand the scope for incorporating institutionalism. These points are illustrated through an intra-industry comparative study of three textile agro-industries in China.

Drafts by Mark Dallas

Working Paper Copenhagen Business School, 2017

‘Power’ has been a foundational concept in examining global value chains and production networks ... more ‘Power’ has been a foundational concept in examining global value chains and production networks for understanding patterns and dynamics in the global political economy. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years given the proliferation of new GVC frameworks, which extend beyond dyads of transacting firms or firm-state linkages, to incorporate other stakeholders and mechanisms –
including NGOs, labor unions, standards and conventions. In this paper, we propose a typology for the varied meanings and usages of power in GVCs. We delineate two principal dimensions of power: transmission mechanisms – direct and diffuse; and arena of actors – dyads and collectives. Combined, these two dimensions yield four ideal types of power exercised in GVCs: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.

Power' has been a foundational concept in examining global value chains and production networks f... more Power' has been a foundational concept in examining global value chains and production networks for understanding patterns and dynamics in the global political economy. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years given the proliferation of new GVC frameworks, which extend beyond dyads of transacting firms or firm-state linkages, to incorporate other stakeholders and mechanismsincluding NGOs, labor unions, standards and conventions. In this paper, we propose a typology for the varied meanings and usages of power in GVCs. We delineate two principal dimensions of power: transmission mechanisms-direct and diffuse; and arena of actors-dyads and collectives. Combined, these two dimensions yield four ideal types of power exercised in GVCs: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.

Review of International Political Economy, 2019

* This version of the article has been accepted for publication and undergone full peer review bu... more * This version of the article has been accepted for publication and undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the publisher's final version AKA Version of Record.

SSRN Electronic Journal, 2013

ABSTRACT

World Development, 2014

ABSTRACT

World Development, 2021

Shortages of critical medical supplies during the COVID-19 pandemic have turned global value chai... more Shortages of critical medical supplies during the COVID-19 pandemic have turned global value chains (GVCs) in personal protective equipment (PPE) into a political lightning rod. Some blame excessive outsourcing and foreign dependency for causing shortages, thus urging greater state intervention; others applaud GVCs for their flexibility and scaling up of production, while blaming states for undermining GVC operations. Using policy process-tracing and monthly trade data of seven PPE products across the US, Europe, China and Malaysia, this paper goes beyond the binary debate of either the ‘failure’ or ‘success’ of GVCs to show when and under what conditions states interacted with GVCs to produce mixed outcomes in provisioning countries with PPEs. We identify interactions between the type of state intervention and two key structural features of GVCs – geographic distribution of production and technological attributes of the product. Conceptually, the paper demonstrates the mutual constraints of states and GVCs, and highlights structural factors involved in the relationship. Looking to the future of GVCs, we caution against wholesale declarations that GVCs should be abandoned or maintained, instead concluding that paying attention to GVC structure, states and their interactions are crucial.

Review of International Political Economy, 2019

Power has been a foundational concept in global value chain (GVC) research. Yet, in most GVC scho... more Power has been a foundational concept in global value chain (GVC) research. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years as GVC research has proliferated beyond dyads of transacting firms or firm-state linkages and incorporated other stakeholders and mechanisms such as NGOs, labor unions, standards, norms and conventions. In this article, we propose a typology for the varied meanings and usages of power in GVC governance. We delineate two principal dimensions: transmission mechanisms-direct and diffuse; and arena of actors-dyads and collectives. Combined, these two dimensions yield four ideal types of power in GVC governance: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.

The fragmentation of international production raises a host of problems in our ability to measure... more The fragmentation of international production raises a host of problems in our ability to measure and understand the international economy. Global value chains is one leading approach, but scholars point to several limitations, most prominently aggregating from firm-level observations to national development. This paper develops novel measurements by utilizing a unique Chinese transactional trade database, which records every import and export transaction. It applies them to GVC theory to help resolve these limitations, build bridges to other theoretical approaches, make aggregate estimations of GVC-organized trade, and raise questions about the foundations of China’s manufacturing and export prowess.

Abstract Since the end of the Cold War, there has been an extraordinary increase in the share of... more Abstract
Since the end of the Cold War, there has been an extraordinary increase in the share of foreign direct investment (FDI) going to developing countries, and political scientists have taken notice. Research has focused on institutional factors, in particular their importance in establishing credible commitments. However, in focusing on institutions, the investors themselves – the multinational enterprises (MNEs) – are largely ignored. This is because the literature models and measures FDI as bilateral economic flows between countries, rather than conceptualizing it as networks of actors, with strategies, goals and the capacity to organize international production. We are missing half the story.

This paper focuses on China, the most successful, large developing country FDI host in absolute terms and relative to its large economy. In the general and China-specific FDI literatures alike, China presents a string of anomalies in both aggregate inward FDI and when it is decomposed, including unusual allocations across industries, MNE modes of entry and by country of origin. Almost without exception, China’s domestic institutions serve as the principal explanations, including ones based on credible commitments.

This paper reconsiders these anomalies through the lens of MNE organization – specifically, their fragmentation of global production through vertically specialized production networks. Using disaggregated and nested data of industries, sub-industries, firms and a unique database of millions of individual trade transactions, the paper inductively re-constructs Chinese statistical data to uncover very consistent patterns of inward FDI that reveals an underlying MNE organizational logic in the restructuring of East Asian production, for which institutional arguments and market forces are unable to account. More importantly, in contrast to institutional accounts which offer diverse explanations for the anomalies, a MNE organizational approach parsimoniously offers leverage across them. By examining the international economy through the reconstruction of disaggregated national data, we can learn something about China, East Asia and the organization of the international economy.

Review of International Political Economy, 2015

Over the past several decades, firms have de-verticalized and internationalized increasingly comp... more Over the past several decades, firms have de-verticalized and internationalized increasingly complex manufacturing and service functions, a phenomenon studied across the social sciences. However, the disciplines disagree over whether the fragmentation of production is substantively novel, requiring amendments to trade theory, or is simply a secular deepening of the international division of labor. Some economists view it as "just trade," driven by well-known actor-less determinants, such as factor endowments, technology, and returns to scale, while more recent firm heterogeneity trade theories consider firm behavior. By contrast, other heterodox social science approaches differ by focusing on the strategic actions of firms and sector-specific governance as independent drivers which "govern" trade and determine the division of value between countries. This paper develops novel measurements by utilizing unique transactional trade data -the raw firm-level trade transactions that comprise standard inter-country trade statistics -on 439 of China's largest exporters in eighteen sub-sectors of the electronics and light industries, to examine whether trade is heterogeneously governed in ways theorized by the global value chains (GVC) literature. It finds substantial empirical support for GVC-governed trade, and advances both GVC and firm-centric trade theory along several fronts.

Abstract – International fragmented production – the de-verticalization, de-agglomeration and int... more Abstract – International fragmented production – the de-verticalization, de-agglomeration and internationalization of firms and industries – poses serious challenges to our ability to accurately measure and conceptualize the international economy. Studied across many disciplines, including economics, sociology, geography and international business, it has generated a variety of empirical and conceptual approaches, oftentimes incongruous, and each with its own policy implications. Due to inter-disciplinary differences and infrequency of communication, there has been no explicit attempt either to delineate the principal junctures of differentiation between literatures, or the emerging areas of overlap and collaboration. This paper identifies three important analytic dimensions by which international fragmentation is differentiated in data collection, measurement, conceptualization and policy prescription: the status of firms, industrial sector organization, and the scope of inter-firm relationships. It finds many important instances of disciplinary literatures relaxing underlying assumptions and adapting new methodologies, thereby opening important areas of inter-disciplinary convergence.

In studies of the fragmentation and internationalization of production, most value chain approach... more In studies of the fragmentation and internationalization of production, most value chain approaches consider the inter-firm balance of power as the critical dynamic in development. With the firm as the primary unit of analysis, research long held out two promises: first, bridging the 'micro-macro gap' in development theory, meaning making valid inferences from micro-level actors (firms) to macro-sociological outcomes; and second, reconciling its firm-level organizational approach with institutionalism. This paper argues, first, that the literature is artificially constrained in bridging the micro-macro gap due to its delimited conceptualization of 'power,' based on the 'agentic-strategic' behavior of firms. It argues for broadening the notion of power to bridge the levels of analysis, based on the concept of 'emergence.' Second, while institutional critics are correct in criticizing value chain scholarship for its neglect, this paper finds that the effects of institutions are not as consistent or determinative as suggested, and hence, it seeks to expand the scope for incorporating institutionalism. These points are illustrated through an intra-industry comparative study of three textile agro-industries in China.

Working Paper Copenhagen Business School, 2017

‘Power’ has been a foundational concept in examining global value chains and production networks ... more ‘Power’ has been a foundational concept in examining global value chains and production networks for understanding patterns and dynamics in the global political economy. Yet, in most GVC scholarship, power is not explicitly defined and is applied as a unitary concept, rather than as having multiple dimensions. Clarifying the concept of power has become particularly urgent in recent years given the proliferation of new GVC frameworks, which extend beyond dyads of transacting firms or firm-state linkages, to incorporate other stakeholders and mechanisms –
including NGOs, labor unions, standards and conventions. In this paper, we propose a typology for the varied meanings and usages of power in GVCs. We delineate two principal dimensions of power: transmission mechanisms – direct and diffuse; and arena of actors – dyads and collectives. Combined, these two dimensions yield four ideal types of power exercised in GVCs: bargaining, demonstrative, institutional and constitutive. We offer brief illustrations of these four types of power and provide an agenda for further research in the field.