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Many of the exports of developing countries are channeled through global value chains (GVCs), which also act as conduits for new technologies. However, new capabilities and productive employment remain limited so far to a tiny sliver of globally integrated firms. GVCs and new technologies...
Persistent link: https://www.econbiz.de/10012909494
Specialization alters the incidence of manufacturing trade costs to buyers and sellers, with pro-and anti-globalizing effects on 76 countries from 1990-2002. The structural gravity model yields measures of Constructed Home Bias (the ratio of predicted local trade to predicted frictionless local...
Persistent link: https://www.econbiz.de/10013069388
We argue that trade in intermediate inputs, or 'global production sharing,' is a potentially important explanation for the increase in the wage gap between skilled and unskilled workers in the U.S. and elsewhere. Using a simple model of heterogeneous activities within an industry, we show that...
Persistent link: https://www.econbiz.de/10013227492
This paper develops a multi-stage general-equilibrium model of global value chains (GVCs) and studies the specialization of countries within GVCs in a world with barriers to international trade. With costly trade, the optimal location of production of a given stage in a GVC is not only a...
Persistent link: https://www.econbiz.de/10012955438
The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies' choice between processing and ordinary trade –...
Persistent link: https://www.econbiz.de/10013065018
succinct overview of several measures developed to capture the upstreamness or downstreamness of industries and countries in …
Persistent link: https://www.econbiz.de/10012930848
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
Revolutionary transformations of industry and trade occurred from 1985 to the late-1990s - the regionalisation of supply chains. Before 1985, successful industrialisation meant building a domestic supply chain. Today, industrialisers join supply chains and grow rapidly because offshored...
Persistent link: https://www.econbiz.de/10013091898
This paper provides a general and unified framework to study the role of production networks in international GDP comovement. We first derive an additive decomposition of bilateral GDP comovement into components capturing shock transmission and shock correlation. We quantify this decomposition...
Persistent link: https://www.econbiz.de/10012867903
Growth in international trade and globalization has been correlated in nearly all countries with a worsening of the … globalization in France has been a huge growth in vertical specialization -- the completion of the different production stages of a … good in different countries. By shifting relative labor demand across countries, globalization of this form could explain …
Persistent link: https://www.econbiz.de/10013218888