State power, Global Production Networks, and underdevelopment: examining South Carolina’s success in fostering strategic coupling

Under the notion of strategic coupling, GPN scholarship acknowledges the pivotal role of firms and non-firm actors in integrating regions into value chains and in regional development. However, the GPN 2.0 approach has focused largely on firms with limited attention to state managers’ practices in coupling creation. This paper addresses this gap by engaging with Jessop’s strategic-relational approach, Fred Block, and uneven and combined development theory to examine state managers’ action in coupling creation. Examining South Carolina as a case study, the paper argues that its success in attracting foreign direct investments (FDIs) stems from the interplay of state power, a manufacturing fraction of capital, and underdevelopment. South Carolina leverages its underdevelopment to create policies that attract FDIs and promote strategic coupling. Three key dimensions of state action are identified: fluidity and flexibility, commitment to right-to-work status, and alignment of the education system with corporate interests. This research is based on qualitative methods. Thirty-one semi-structured interviews were conducted in South Carolina.