ABSTRACTS
Making a Global Gas Market: Territoriality and Production Networks in Liquefied Natural Gas
Gavin Bridge and Michael Bradshaw
Abstract: Energy markets are an important contemporary site of economic globalization. In this article we use a global production network (GPN) approach to examine the evolutionary dynamics of the liquefied natural gas (LNG) sector and its role in an emerging global market for natural gas. We extend recent work in the relational economic geography literature on the organizational practices by which production networks are assembled and sustained over time and space; and we address a significantly underdeveloped aspect of GPN research by demonstrating the implications of these practices for the territoriality of GPNs. The article introduces LNG as a techno-material reconfiguration of natural gas that enables it to be moved and sold beyond the continental limits of pipelines. We briefly outline the evolving scale and geographic scope of LNG trade, and introduce the network of firms, extraeconomic actors, and intermediaries through which LNG production, distribution, and marketing are coordinated. Our analysis shows how LNG is evolving from a relatively simple floating pipeline model of point-to-point, binational flows orchestrated by producing and consuming companies and governed by long-term contracts, to a more geographic and organizationally complex production network that is constitutive of an emergent global gas market. Empirically the article provides the first systematic analysis within economic geography of the globalization of the LNG sector and its influence on global gas markets, demonstrating the potential of GPN (and related frameworks) to contribute meaningful analysis of the contemporary political economy of energy. Conceptually the article pushes research on GPN to realize more fully its potential as an analysis of network territoriality by examining how the spatial configuration of GPNs emerges from the organizational structures and coordinating strategies of firms, extraeconomic actors and intermediaries; and by recognizing how network territoriality is constitutive of markets rather than merely responsive to them.
Key words: global production networks, territoriality, network practices, liquefied natural gas
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Earth Incorporated: Centralization and Variegation in the Global Company Network
Daniel Haberly and Dariusz Wójcik
Abstract: Over the past twenty years, a widening gulf has appeared between the increasingly internationalized financing arrangements of the world’s leading corporations and the persistence of nationally compartmentalized approaches to the study of corporate control. In lieu of direct empirical evidence on corporate control at the global level, the most widespread assumption is that the globalization of ownership has taken the form of an expansion of arm’s-length, market-based arrangements traditionally prevailing in the Anglo-American economies. Here, however, we challenge this assumption, both empirically and conceptually. Empirically, we show that three-quarters of the world’s 205 largest firms by sales are linked to a single global company network of concentrated (5 percent) ownership ties. This network has a hierarchically centralized organization, with a dominant global network core of US fund managers ringed by a more geographically diverse state capitalist periphery. Conceptually, we argue that the this architecture can be broadly explained through a Polanyian variegated capitalist model of contradictory market institutionalization, with the formation of the global company network actually a counterintuitive product of global financial marketization. In order to understand this process of network formation, however, it is necessary to extend Polanyi’s model of a double movement, mediated through political interventions in the market, to incorporate Veblenian processes of evolutionary institutional change, mediated through the market.
Key words: global company network, corporate ownership internationalization, asset management concentration, sovereign wealth funds, state capitalism, financialization, variegated capitalism, evolutionary economic geography
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Urban Immigrant Diversity and Inclusive Institutions
Tom Kemeny and Abigail Cooke
Abstract: Recent studies identify a robust positive correlation between the productivity of urban workers and the presence of a diverse range of immigrants in their midst. Seeking to better understand this relationship, this article tests the hypothesis that the rewards from immigrant diversity will be higher in metropolitan areas that feature more inclusive social and economic institutions. Institutions ought to matter because they regulate transaction costs, which, in principle, determine whether or not diversity offers advantages or disadvantages. We exploit longitudinal linked employer–employee data for the United States to test this idea, and we triangulate across two measures that differently capture the inclusiveness of urban institutions. Findings offer support for the hypothesis. In cities with low levels of inclusive institutions, the benefits of diversity are modest and in some cases nonexistent; in cities with high levels of inclusive institutions, the benefits of immigrant diversity are positive, significant, and substantial. We also find that weakly inclusive institutions hurt natives considerably more than foreign-born workers. These results confirm the economic significance of immigrant diversity, while suggesting the importance of local social and economic institutions.
Key words: cities, immigration, diversity, institutions, social capital, productivity
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Where Chain and Environmental Governance Meet: Interfirm Strategies in the Canned Tuna Global Value Chain
Elizabeth Havice and Liam Campling
Abstract: In value chain scholarship, chain governance is the relationship of power among firms in a production network. For economic geographers working on the environment, governance refers primarily to state- and nonstate-based institutional and regulatory arrangements shaping human–environment interactions. Yet the theoretical and empirical links between these two concepts of governance are opaque. Drawing on a longitudinal case study of the canned tuna value chain and a historic materialist method, we demonstrate how interfirm strategies over the appropriation of value and distribution of costs and risks work through the environment. We document moments of change in the value chain that enliven a dynamic understanding of how a lead firm becomes and reproduces its power, and strategies that subordinate firms deploy to try to counter the power of lead firms. We posit that these moves broaden value chain scholarship’s focus from governance typologies toward the gravitational tendencies of capitalist competition and that such tendencies are inextricable from the environmental conditions of production through which they are made possible. This approach enables us to look at value chains and the environmental conditions of production as mutually constitutive, helping to explain vexing modern environmental problems as a core element of the general tendencies, mechanisms, and drivers of power in chains.
Key words: firm strategy, environmental governance, global value chains, global production networks, fisheries
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