Edited by Stefano Ponte, Gary Gereffi and Gale Raj-Reichert
Chapter 8: Rents and inequality in global value chains
This chapter explores the manner in which the global value chain framework can contribute to an understanding of the distribution of income. The core analytical concepts that further this analysis are various categories of rent and the barriers to entry that protect rents. This is followed by a description of four major distributional trends – in the global interpersonal distribution of income, in the class distribution of income, in the skills distribution of income and in the interfirm distribution of income. These two discussions are then drawn together to illustrate how the global value chain framework provides important insights into the distributional outcomes of global trade.
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