The governance of global wealth chains
By Leonard Seabrooke, Duncan Wigan. 2017
165 citations recorded by the source corpus.
ABSTRACT This article offers a theoretical framework to explain how Global Wealth Chains (GWCs) are created, maintained, and governed. We draw upon different strands of literature, including scholarship in International Political Economy and Economic Geography on Global Value Chains, literature on finance and law in Institutional Economics, and work from Economic Sociology on network dynamics within markets. This scholarship assists us in highlighting three variables in how GWCs are articulated and change according to: (1) the complexity of transactions, (2) regulatory liability, and (3) innovation capacities among suppliers of products used in wealth chains. We then differentiate five types of GWC governance – Market, Modular, Relational, Captive, and Hierarchy – which range from simple ‘off shelf’ products shielded from regulators by advantageous international tax laws to highly complex and flexible innovative financial products produced by large financial institutions and corporations. This article highlights how GWCs intersect with value chains, and provides brief case examples of wealth chains and how they interact.
Subfields: Economics and Econometrics, Finance, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/d442c806ec1113db87388d9affa44d7dd37967b7
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Citations in the corpus
- From performativity to political economy: index investing, ETFs and asset manager capitalism (2016, background): “…with a more traditional, production-oriented analysis of value chains by ‘thinking about the co-evolving relationship between the socio-technical aspects of financial products and more institutional dimensions of market development’ (Goldstein and Fligstein 2014: 10; cf. Seabrooke and Wigan 2014).”
- Intellectual monopoly in global value chains (2019, unknown): “In this way, GVC trade may “hide, obscure and relocate wealth to the extent that they break loose from the location of value creation and heighten inequality” (Seabrooke & Wigan, 2017, p. 257).”