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comovement. We first derive an additive decomposition of bilateral GDP comovement into components capturing shock transmission … and shock correlation. We quantify this decomposition in a parsimonious multi-country, sector and factor network … propagation model featuring a single composite supply shock, with data for 29 countries and up to 30 years. We find that the …
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Power is one of the key components in understanding and analyzing global production and is central to the analytical frameworks of both GVCs and GPNs. By focusing on firms' power within GPNs, we are able to draw a novel analytical link between the governance structures of GVCs and network...
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