The potential restructuring of global value chains (GVCs) is a widely discussed question in current debates. At the same time, a proper way of capturing these value chains is challenging. This paper focuses on the automotive industry, using detailed data on firm-to-firm transactions in Hungary,...

We study the optimal organizational structure of a firm in a sequential supply chain when investments are relationship specific and contracts are incomplete. The market structure for the final product is monopolistic competition. Production follows a preordered sequence and exhibits high...