Geography

Globalizing development in Bolivia? Alternative networks and value-capture challenges in the wood products industry

Document Type

Article

Abstract

This article assesses the influence of global production networks (GPN) on regional development processes through an analysis of Bolivia's growing wood products industry. We develop a conceptualization of GPN integration that highlights the agencies of lower-tier suppliers and then identify four distinct kinds of production networks available to these manufacturing firms. The characteristics of two of these networks-those serving high-volume buyers such as leading transnational corporations (TNC) and those serving low-volume international buyers-are detailed and compared with respect to their relationship development processes and intra-firm and regional value creation, enhancement and capture dynamics. The findings demonstrate the polycentric manner in which GPN are organized, the challenges of using GPN integration as a means for regional development, and the evolutionary processes through which localized production networks become globalized. With respect to policy, the findings highlight some of the industrial development challenges facing Bolivia's new socialist government and demonstrate why it is critical for policymakers to recognize production network diversities, discontinuities and differences. © The Author (2009). Published by Oxford University Press. All rights reserved.

Publication Title

Journal of Economic Geography

Publication Date

2011

Volume

11

Issue

1

First Page

61

Last Page

85

ISSN

1468-2702

DOI

10.1093/jeg/lbp059

Keywords

Bolivia, global production networks, regional development, wood industry

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