We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

Input-Output tables have become the workhorse data structure when considering global supply chains since, by definition, they measure how production in one countrysector is linked to that in another via trade in intermediate inputs. What traditional input-output tables miss, however, is the role...

In this paper we examine the linkages between involvement into global value chains (GVCs) and the gender wage inequalities. We use merged wide-ranging Structure of Earning (SES) and World Input Output Database (WIOD) for the years 2002, 2006, 2010 and 2014, covering manufacturing industries of...

By using very rich individual-level data on workers from 28 European countries, we provide the first so extensive cross-country assessment of wage response to global production links within global value chains (GVCs) in the period 2005-2014. Unlike the other studies, we (i) address the...

Many previous studies have shown that the localisation of firms can be an important factor in attracting new foreign direct investment into a host country. What has been missing in this literature thus far, however, is an investigation into the reasons why industry clusters attract firms. We...