This study examines capital accumulation and growth among subcontracting small-scale textile firms. We find that, in spite of the higher average profitability of non-subcontracting production relative to subcontracting, the average annual rate of capacity expansion between the two groups is not...

We investigate the effects of input variety creation and destruction on both micro- and macroeconomic outcomes using detailed data from Belgium. We estimate that marginal costs rise by 0.6% for every 1% of suppliers lost. We show that this elasticity measures the area under the input demand...

An active debate has centered on the importance of manufacturing for driving innovation in the U.S. economy. This paper proposes an alternative framework that focuses on the role of suppliers of goods and services (the “supply chain economy”) in national performance. Using the 2002 Benchmark...