Relational links for insertion in non-mass global value chains: Opportunities for middle-income countries

Abstract

This paper describes two Argentine case studies of firm's integration in global value chains (GVCs) that target non-mass market segments in developed countries. The cases involve a manufacturer of high-end footwear and a manufacturer of customized automotive parts. Based on the common findings in these two cases, we build a conceptual framework that emphasizes relational links as an opportunity of GVC insertion for middle-income countries that cannot buttress their international competitiveness on low wages. We call these modes of insertion manufacturing with co-design.