Subnational Policy and Sustainability in Southern-Led Global Value Chains: A Comparative Study of Sugarcane and Cosmetics in Brazil

How global value chains (GVCs) effect, and engage with, environmental and social sustainability is much studied. Yet, understanding how subnational institutional dynamics influence sustainability responses remains thin. Through comparative analysis of Brazil’s sugarcane and cosmetics sectors in two distinct states, we examine the role of subnational institutional capacity. São Paulo’s strong institutional scaffolding supports technological and circular innovations, while Amazonas’ relative institutional voids produce fragmented and uneven outcomes. Our findings contribute to economic geography debates on subnational governance by showing that sustainability outcomes in Southernled GVCs are contingent upon interactions between institutional capacity, at multiple scales, and sector-specific GVC dynamics.