Market rebalancing of global production networks in the Post-Washington Consensus globalizing era: Transformation of export-oriented development in China

Chun YANG*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

42 Citations (Scopus)

Abstract

The current global financial crisis has prompted researchers to revisit the export-oriented development models, known as the 'Washington Consensus' paradigm, that have prevailed in East Asia during the past few decades. Host domestic markets have been generally neglected in the conceptual construct and empirical analysis of export-oriented development. Drawing upon the global production networks (GPNs) perspective, the study advances an evolutionary framework to shed light on the rising domestic market in China as emerging dynamics of regional transformation in contemporary economic globalization. The study is conducted based on updated investigations of the market rebalancing of transnational corporations (TNCs) in China, and particularly the Pearl River Delta (PRD), in response to the post-crisis global-local interaction. It argues that the institutional and network embeddedness of TNCs in the processing trade regime have hampered their 'recoupling' with the domestic market and 'decoupling' from external markets. Instead, a domestic market oriented production network is emerging, driven by strategic contract manufacturers through relocation to inland China. As a pilot attempt to articulate the domestic market in the GPN framework, this study urges more research to reflect the implications of the restructuring of GPNs and market reorientation of TNCs for reshaping regional trajectories in the post-Washington Consensus global economy.

Original languageEnglish
Pages (from-to)130-156
Number of pages27
JournalReview of International Political Economy
Volume21
Issue number1
DOIs
Publication statusPublished - Jan 2014

Scopus Subject Areas

  • Sociology and Political Science
  • Economics and Econometrics
  • Political Science and International Relations

User-Defined Keywords

  • China
  • export-oriented development
  • global production networks
  • market rebalancing
  • Pearl River Delta
  • recoupling and decoupling
  • regional transformation
  • transnational corporations, strategic coupling

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