The trouble with global production networks

Some sympathetic critics have recently found trouble with the latest iteration of the global production networks theory (GPN 2.0) developed in economic geography. I term these immanent critiques “GPN trouble” and address them in this Exchanges paper in relation to GPN 2.0’s conceptualization of value and risk and its perceived “missing” elements of the state, labour, and so on. Reiterating briefly its core tenet, I first demonstrate GPN 2.0’s modest role as a meso theory of industrial organization and economic development in an interconnected world economy. I argue that empirical analysis based on GPN 2.0 must open up the “black box” of production networks in order to evaluate the causal links between network dynamics and uneven development outcomes. Second, I show how understanding these causal links can provide better answers to the crucial question of “in what sense a GPN problem?” Addressing both issues appropriately will likely reduce the sort of “GPN trouble” one might encounter in future research on global economic restructuring during and after the Covid-19 pandemic.