Is a Networked World Economy Sustainable?

Abstract

Economic nationalism and the COVID-19 pandemic have led many to question the future of globalization. Given the fragility of the second wave, this chapter asks whether globalization is cyclical, sustainable only under the most propitious economic or political conditions or whether technological developments, especially the digital revolution, have changed the underlying structure of production in ways that markedly increase the cost of renationalization. Global production networks (GPNs) are discussed as an example of structural change, the emergence of a networked world economy that is both more extensive and intensive than in the past. The chapter concludes that the international economic environment will be unstable, as attempts to restore national independence and disaggregate GPNs run up against the reality of mutual dependence. While we are unlikely to return to independent national markets, the future shape of globalization is uncertain.

Citation

Kobrin, S.J. (2021), "Is a Networked World Economy Sustainable?", Verbeke, A., van Tulder, R., Rose, E.L. and Wei, Y. (Ed.) The Multiple Dimensions of Institutional Complexity in International Business Research (Progress in International Business Research, Vol. 15), Emerald Publishing Limited, Leeds, pp. 63-70. https://doi.org/10.1108/S1745-886220210000015004