Showing 1 - 10 of 256
This paper develops an elementary theory of global supply chains. We consider a world economy with an arbitrary number of countries, one factor of production, a continuum of intermediate goods, and one final good. Production of the final good is sequential and subject to mistakes. In the unique...
Persistent link: https://www.econbiz.de/10013127420
More advanced technologies demand higher degrees of specialization - and longer chains of production connecting raw inputs to final outputs. Longer production chains are subject to a "weakest link" effect: they are more fragile and more prone to failure. Optimal chain length is determined by the...
Persistent link: https://www.econbiz.de/10013135410
The trade linked to international production networks - supply-chain trade for short - is associated with momentous global economic changes. This paper presents a portrait of the global pattern of supply-chain trade and how it has evolved since 1995. The paper draws on a variety of data sources...
Persistent link: https://www.econbiz.de/10013083394
This paper proposes a framework for gross exports accounting that breaks up a country's gross exports into various value-added components by source and additional double counted terms. By identifying which parts of the official trade data are double counted and the sources of the double...
Persistent link: https://www.econbiz.de/10013097267
We show in a multi-sector, heterogeneous-firm trade model that the effect of tariffs on entry, especially in the …, and apply it to a 189-country, 15-sector version of our model, to quantify the trade, entry, and welfare effects of trade … liberalization over the period 1990–2010. We find that the impact on firm entry was larger in Advanced relative to Emerging and …
Persistent link: https://www.econbiz.de/10013010722
economic policies such as barriers to entry or trade liberalization. Using a multi-country model of production and trade … calibrated to the observed distribution of firm size, we show that the welfare impact of high entry costs is small. In the sample … of the largest 50 economies in the world, a reduction in entry costs all the way to the U.S. level leads to an average …
Persistent link: https://www.econbiz.de/10013138768
We examine entry across 113 national markets in 16 different industries using a comprehensive data set of French … completely into firm entry while about 60 percent of the variation in market size is reflected in firm entry. Looking within each …
Persistent link: https://www.econbiz.de/10013324638
Models dealing with cross-border acquisitions versus greenfield investment usually assume that the entry of a foreign … firm into a market has effects on the outputs of all domestic firms in that market, but exit or entry of local firms is not … versus free entry assumptions for local firms. Our finding is that greenfield entry and exporting options are more attractive …
Persistent link: https://www.econbiz.de/10013224413
The rise of China in world trade has brought both benefits and anxiety to other economies. For many policy questions, it is crucial to know the extent of domestic value added (DVA) in exports, but the computation is more complicated when processing trade is pervasive. We propose a method for...
Persistent link: https://www.econbiz.de/10012759190
I offer an overview of some key conceptual aspects associated with the rise of global value chains (GVCs). I outline a series of alternative interpretations and definitions of what the rise of GVCs entails, and I trace the implications of these alternative conceptualizations for the measurement...
Persistent link: https://www.econbiz.de/10012858026