Franco, Sebastián Fernández;
Graña, Juan M;
Rikap, Cecilia;
(2024)
Dependency in the Digital Age? The Experience of Mercado Libre in Latin America.
Development and Change
10.1111/dech.12839.
(In press).
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Abstract
This article uses Mercado Libre, the leading digital platform company in Latin America, as an illustrative case to analyse the effect of regional platforms on development, by considering their interplay with both global leaders and local actors. Building on dependency theory, the article identifies the company's structural dependence on algorithms and computing power provided by the largest information technology (Big Tech) companies in the United States. Nonetheless, it also finds that Mercado Libre is at the frontier in applied data analysis solutions tailored for its businesses. Together with a privileged access to personalized and cross‐fertilized market and financial datasets, the company's internal and purchassed technologies are the source of asymmetric relationships with its platforms’ users. The article conceptualizes Mercado Libre's place in digital capitalism as extractivist with local actors and, just like local elites when dependency theory was first formulated, it is complicit with global powers. But, unlike those elite firms, it is not technologically laggard, and its value capture is underpinned by its technological advantage. Thus, this article conceptualizes (digital) dependency as multiple layers of economic power in which leading firms from the peripheries occupy intermediate and interconnecting positions. It shows that, while these regional leaders operate at the technological frontier, economic power relations based on technological asymmetries remain crucial for studying underdevelopment.
| Type: | Article |
|---|---|
| Title: | Dependency in the Digital Age? The Experience of Mercado Libre in Latin America |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1111/dech.12839 |
| Publisher version: | http://dx.doi.org/10.1111/dech.12839 |
| Language: | English |
| Additional information: | © 2024 The Author(s). Development and Change published by John Wiley & Sons Ltd on behalf of Institute of Social Studies. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/). |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10193868 |
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