India presents an unique example of manufacturing capability in most sectors, but low integration into GVCs. This paper examines the reasons for India's low integration into GVCs, especially in the manufacturing sector. It argues that one of the reasons for India's low integration into GVCs is...

In this era of globalisation the traditional Ricardian theory of trade in products governed by comparative advantages is replaced by a modern theory of trade in tasks. Tasks are outsourced to those places in the world where the lower production costs outweigh the additional transaction costs...

According to a company survey, global value chains are changing. Even though big changes were expected during the Covid period, the actual changes were quite small at the time. Instead, after the early 2022, more obvious change has already been in the sourcing of materials and parts. They are...

In Europe, a huge share of firms is family owned. Since family firms are known to be more risk averse concerning international transactions, an interesting question emerges: Do family firms adopt a different international sourcing pattern. Altering the Gloubal Sourcing model of Antràs and...

Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The...

During the last decades, the growth of trade between China and the Netherlands has been larger than the increase in bilateral trade flows between China and most other countries. Using a time series based gravity model, this paper investigates the main determinants of this increase. The empirical...

This paper analyses how international outsourcing affects plant productivity, with the major contribution lying in the identification of heterogeneous effects for firms with differing internationalisation status. The results point to a striking pattern: the status of being an outsourcer matters...

One of the greatest concerns over globalisation is its impact on the environment. This paper contributes to this debate by analysing the consequences of becoming an exporter on a firm's energy consumption. We show both theoretically and empirically that for low fuel intensity firms exporting...

We analyze the effects of captive off-shoring of innovation activities on the firms' ability to adapt their organizational processes and structures. Starting from complexity theory, we use three consecutive waves of the German part of the Community Innovation Survey to test our hypotheses. We...

In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production, and endogenous market structures. We analyze how relative factor endowments and various forms of globalization and technological change affect equilibrium offshoring patterns....