The core idea behind the paper is that trade policy matters for the organization of global value chains, a notion largely neglected by economists but which has important implications for our understanding of trade and the international transmission of trade policy shocks. We develop a...

In this paper, we construct an elaborate general equilibrium model with a continuum of production fragments for an intermediate good, then embed it in a growth model to address the effects of global production fragmentation, vertical specialization and trade on growth and inequality for a small...

This paper revisits the hypothesis that globalization may weaken central bank’s monetary control by shedding light on the role of vertically globalized production structure that increasingly permeates the international production process in the transmission of foreign disturbances into...