The geography of global value chains (GVCs) depends crucially on trade costs between countries hosting various stages of production. Some stages might be more sensitive to trade costs than others. In this paper, we exploit a value-added decomposition of bilateral trade flows to distinguish low...

Global Value Chains (GVCs) have exploded in the past decade and refer to the international dispersion of design, production, assembly, marketing and distribution of services, activities, and products. Different stages in the production process are increasingly located across different economies,...

How do countries specialize along global value chains (GVCs)? Models of Costinot et al. (2013) and Antràs and de Gortari (2020) predict more productive and centrally located countries specialize in more downstream stages where the costs of production errors and shipping are higher. I...