This paper examines Mexico's integration into Global Value Chains (GVCs) and its implications for structural change over the period 1995-2020. Using a multiregional input-output framework, the analysis decomposes gross exports into domestic and foreign value added and combines these indicators...

Global value chains have recently changed structurally ("servicification")-that is, service sectors' involvement in global value chain processes has become more intensive. We quantify services trade restrictions' contribution to underdevelopment of global value chain servicification across Asian...

How do global production networks and market structure interact to shape the welfare effects of trade and competition policy? We develop a model with two-sided firm heterogeneity, matching frictions, and imperfect supplier competition. More productive buyers match with more suppliers, inducing...

Geoeconomic fragmentation - the phenomenon of international transactions being increasingly restricted to politically aligned partners - creates risks for individual countries but also opportunities that some hope to seize by becoming "connector" countries. We modify a standard trade model by...

We examine how firms strategically slice up global production processes to protect proprietary know-how. By sourcing fewer inputs from each supplier, firms avoid the concentration of information in the hands of individual suppliers and thereby reduce the risk of imitation. Using rich micro data...

This paper addresses two questions namely, first, the extent to which the very participation in Global Value Chains (GVCs) has penalised labour as a globally insourced production input, and, second, what happened to between-occupation functional inequality. We combine input-output (I-O) tables...

How does Italy position inside the European structure of trade relationships? How labour bilateral flows have changed over time? Which type of employment activity has been outsourced? Which insourced? Focusing on a three-country perspective, what are the employment bilateral relationships...

Focusing on labour requirements incorporated into GVCs, in the following, we develop a novel, non conventional measure of learning capabilities, represented by knowledge embodied along the division of labour within global production networks. In order to capture the division of labour, and the...

This study examines recent changes in international production networks facing various risks. We primarily investigate how import sources of the European Union (EU) countries in machinery industries have changed from the pre-pandemic to the post-pandemic period using monthly and annual...

This paper examines intermediation in production networks to unpack the firm attributes and matching costs that govern firm-to-firm networks and the gains from trade. Exploiting rich customs data for Chile, we show that exporters of all sizes use intermediaries, mix trade modes across buyers,...

This paper provides a new explanation for the dominance of multinational corporations (MNCs) in international trade: after being acquired by an MNC, firms face lower entry frictions in countries in which their global parent already has a presence. We provide a model of firms’ export and import...

This paper brings new compelling regional-level evidence on the environmental degradation brought about by intra-European value chains. The paper postulates the presence of pollution havens derived as a consequence of the European production integration. We identify a neat elites-ghettos divide...

Despite the growing evidence on the importance of African countries' participation in global value chains (GVCs), relatively little is known about the role of innovation. This paper tends to fill this gap by examining the effects of innovation on firms' GVC participation in francophone Africa....

Since the onset of globalization, production activities have become increasingly fragmented and organized in global value chains, facilitating the trade of intermediaries across industries and countries. In this paper, we analyze the dynamic effect of increasing participation in global value...

Die österreichische Außenwirtschaft ist ein zentraler Motor des wirtschaftlichen Wachstums. Dieser Motor ist jedoch zunehmend ins Stottern geraten. Gründe dafür sind - neben innerstaatlichen Faktoren - wachsende geopolitische Unsicherheiten und Krisen, die schwächelnde deutsche...

Climate policies do not operate in isolation but propagate through global production networks, affecting industries beyond national borders. This paper combines international input-output data with a granular instrumental variable approach to capture how foreign regulations transmit through...

The aim of the article is to show that although most countries in the Global South have been able to reduce absolute poverty, with a few exceptions they have not succeeded in catching up with the countries of the Global North. The conclusion of the article is that, especially after the...

So-called "connector" countries have been argued to benefit from the US-China trade tensions, given their rising share in US imports. This paper draws an important distinction between trade reallocation-countries increase domestic production to substitute for declining Chinese exports to the...

How the use of industrial robots affects value capture in fragmented global production networks, represented by global value chains (GVCs), remains an open question. I focus on the automotive industry - the largest consumer of industrial robots and one of the most traded manufacturing industries...

Industry is the main source of carbon emissions, and reducing emissions is closely linked to advancing carbon neutrality. Moreover, technological innovation is crucial for industrial low-carbon development. This study uses provincial panel data from China covering 2010 to 2023 and employs the...

We study the aggregate implications of production network formation in a quantitative multi-location general equilibrium trade model. Firms search for suppliers and buyers across locations subject to matching frictions, generating a gravity structure of production networks. We develop sufficient...

Purpose - This paper investigates the crucial role that the trade of intermediate goods plays in elucidating trade-output synchronization. We specifically highlight the significance of incorporating intermediate trade, particularly concerning the dominance of forward linkages in the global value...