Inter-Organizations Rents and Profit Allocation in Global Value Chain

Global value chain (GVC) has broadened the international division participation of a state or an area with economic policies. The actors in global value chain obtained different profit. The paper from economic rent view stressed the significance of inter-corporation rents and analyzed profit allocation in the global value chain. We find that the profits depend on the market structure of product stages. Who owns market power and leader power that will dominate whole integral process and gains more profit.