country’s welfare by reducing its exposure to foreign supply shocks? We use a quantitative trade model to simulate GVCs … far exceed any benefits from lower shock exposure. In the U.S., a repatriation of GVCs would reduce national welfare by 2 ….2% but barely change U.S. exposure to foreign shocks. …

(in contrast to final goods trade) in transmitting the shock. In a hypothetical world without GVCs, the welfare loss due … substantial welfare loss while its exposure to the shock would have barely changed. …

In this paper, we develop a network perspective on the welfare gains from trade in today's internationally fragmented … partners, but rather by its supply chain exposure to countries further up- and downstream in the global supply chain. We … develop a set of simple statistics to measure each country’s supply chain exposure, show how it predicts the gains from trade …

of (a) a theoretical framework that accommodates first order features of firm-to-firm network data, (b) a maximum … analysis that speaks to the effects of micro- and macroshocks to the spatial network economy. In the model, firms with low … other firms can be explained by endogenous changes in the network structure. …

The recent literature on firm-to-firm trade has documented salient empirical regularities of the buyer-seller network …