World cities and peripheral development: The interplay of gateways and subordinate places in Argentina and Ghana’s upstream oil and gas sector

Abstract

Serving as “gateways”, some world cities tie their wider hinterlands to global networks. The article revisits gateway–hinterland relations against the backdrop of assessments that lead to opposed conclusions on the benefits and shortcomings of integration into the world economy. Referring to the oil and gas sector in Argentina and Ghana, it answers the question of how gateways interact with subordinate places and also uncovers obstacles to peripheral development. The author finds that Accra and Buenos Aires concentrate corporate control. Argentina's capital serves as a gateway for knowledge generation and logistics too. Opportunities for peripheral development in both countries are considerable, albeit largely limited to generic services. Besides a certain concentration of business activities in the gateway cities, more important challenges to peripheral development are typical for small and medium enterprises (insufficient finance and management capabilities, unawareness of business opportunities, and the like). They include rent seeking and subcontracting. The latter leaves local companies in a particularly weak position vis‐à‐vis lead firms. The author argues that while integration into the world economy allows for peripheral development, the corresponding outcomes may not meet everyone's expectations. Related expectations must, therefore, be more down‐to‐earth than overly optimistic statements frequently made by politicians.

Analysing gateway cities at different scales: From global interlinking and regional development to urban branding

“…How to cite this article: Scholvin, S. (2021). Analysing gateway cities at different scales: From global interlinking and regional development to urban branding.…”

“…However, the state of the art on gateways and their impact upon regional development is not as conclusive as the last paragraphs imply. Scholvin (2021) warns against overestimating the relevance of gateway cities. He reminds us that resource peripheries suffer from challenges typically encountered by small and medium‐sized enterprises (insufficient finance and management capabilities, unawareness of business opportunities and the like).…”

Introduction: Nodes in global networks

“…They not only host corporate control and advanced producer services, but are also logistics hubs, sites of industrial processing, and places where knowledge is generated. These functions are not necessarily additive, meaning that gateways are diverse—both in terms of the role they play in global networks and regarding their spatial range (Breul, 2019; Breul & Revilla Diez, 2017; Scholvin, 2020a).…”

“…Scholvin (2019) explains that such concentration is largely due to the local density of key actors. It may limit peripheral development, with the gateway absorbing high value‐added activities and filtering the gains of participation in GPNs (Breul et al., 2019; Scholvin, 2020b). It may also enable what Parnreiter (2019) calls a “geographical transfer of value” from the periphery to the core of the world economy (see also: Scholvin & Breul, 2020).…”

“…Scholvin's (2021) contribution also engages with filtering mechanisms and their developmental consequences. It begins with the fact that the literature on resource peripheries is marked by opposed assessments and evaluations of the prospects of development through integration into GPNs.…”