With intensified global competition, institutional changes and reduced communication costs the propensity of firms to reconfigure their global value chain and separate their activities across national boundaries has increased markedly. It enables firms to combine the benefits arising from...

In this paper, we theoretically investigate the role of technology level in Global Value Chain (GVC) formation from two aspects: position and participation volume. We develop a simple two-country model where countries are heterogeneous with respect to their technology level and labor force. In...