ABSTRACT
Digitalization can change how global production is organized and the scope and extension of global and regional value chains (GVCs), with substantial impacts on the GVC participation of developing countries. This paper analyzes the potential impacts of digitization on GVCs, identifying some particularities of the Brazilian case in light of its insertion pattern in GVCs. We show the importance of digital technologies, at first, to enable the conformation of GVCs. In the period marked by “deglobalization”, digital technologies are adopted by leading companies to mitigate the problems associated with vertically fragmented production structures and the systemic risks associated with the extension of chains. By considering how digital technologies can influence the organization of international production and the governance structures of GVCs, the analysis reveals multifaceted and somewhat contradictory trends, including the increased concentration of value-added in developed countries and even more significant difficulties for developing countries’ GVC participation, especially those specialized in labor-intensive activities lacking sufficient technological capabilities.
KEYWORDS
Digitalization; Global value chains; Reshoring; Industrial densification