Using global Multi-Region Input-Output (MRIO) data from 2005-2015, this paper empirically investigates the extent and patterns by which East African Community (EAC) countries have integrated into Global Value Chains (GVCs) and Regional Value Chains (RVCs). Results imply that the foreign content...

Using global Multi-Region Input-Output (MRIO) data from 2005-2015, this paper empirically investigates the extent and patterns by which East African Community (EAC) countries have integrated into Global Value Chains (GVCs) and Regional Value Chains (RVCs). Results imply that the foreign content...

The Covid-19 pandemic has caused major disruptions in international trade and has raised concerns about adverse effects on international supply chains. Using a unique establishment survey matched with administrative data from Germany, we provide novel evidence on how establishments have adjusted...

This study examines the impact of imported intermediates on plant productivity and the role of plant capability in explaining the heterogeneity of the impact. The study uses a survey database of medium and large Indonesian manufacturing establishments from 2000 to 2015. Imported intermediates...

This paper analyses the effect of offshoring (i.e., the relocation of activities previously performed in-house to foreign countries) on various firm outcomes (domestic employment, production, and productivity). It uses data from the International Sourcing Survey (ISS) 2017 for Germany, linked to...

Die Erzeugerpreise industrieller Güter sind von 2020 auf 2021 um 6 Prozent gestiegen, wobei sich die Preisdynamik im Lauf des Jahres 2021 beschleunigte. Diese Entwicklung setzt sich 2022 fort: Im ersten Quartal 2022 stiegen die Erzeugerpreise im Vorjahresvergleich um 27,3 Prozent. Getrieben...

President Bush imposed safeguard tariffs on steel in early 2002. Using US input-output tables and a generalized difference-in-difference methodology, we analyze the local labor market employment effects of these tariffs depending on the local labor market's reliance on steel as an input and as...

Die Erzeugerpreise industrieller Güter sind von 2020 auf 2021 um 6 Prozent gestiegen, wobei sich die Preisdynamik im Lauf des Jahres 2021 beschleunigte. Diese Entwicklung setzt sich 2022 fort: Im ersten Quartal 2022 stiegen die Erzeugerpreise im Vorjahresvergleich um 27,3 Prozent. Getrieben...

Whether input suppliers charge customized (discriminatory) or industry-wide (uniform) prices affects downstream manufacturers' incentives to innovate. This paper investigates the implications of input price discrimination when an upstream monopolist commits to prices before downstream firms make...

My topic is the question: what difference does the set of commercial policies chosen by a developing country make to its rate of economic growth? Three points are salient. First, in its present state, trade theory provides little guidance as to the role of trade policy and trade strategy in...

The domestic industrial structure optimization for carbon emission reduction usually cause carbon transfer to other countries, while the global industrial structure adjustment would possibly lead to the unbalance of regional economy development. Based on the previous studies, this paper built an...

We study unanticipated tariffs on imports of intermediate goods in a setting with firm-to-firm supply relationships. Firms that produce differentiated products conduct costly searches for potential input suppliers and negotiate bilateral prices with those that pass a reservation level of match...

This paper shows that manufacturing exporters export goods that they have not produced and thus also act as trade intermediaries. This exporting of “sourced” products is ubiquitous across firms, products, and destinations. Using the geographic dimension of the data, we uncover that almost...

This paper examines the output and profit effects of horizontal mergers between upstream firms in intermediate goods markets. We consider market settings in which the upstream firms sell differentiated products to, and negotiate nonlinear supply contracts with, a downstream retail monopolist. If...

Sourcing internationally entails additional costs due to larger per inventory holdings. When firms switch toward foreign sources, these unobserved costs increase. This paper revisits the effect of trade liberalization on firms' productivity taking into account the inventory premium of importing...

Nachdem die globale Wirtschaftstätigkeit im vergangenen Jahr infolge der Covid-19-Pandemie um 3,3 % einbrach, befindet sich die Weltwirtschaft seither auf Erholungskurs. Allerdings verläuft diese Erholung nicht einheitlich, sondern ist in den Industrieländern aufgrund des größeren...

Nachdem die globale Wirtschaftstätigkeit im vergangenen Jahr infolge der Covid-19-Pandemie um 3,3 % einbrach, befindet sich die Weltwirtschaft seither auf Erholungskurs. Allerdings verläuft diese Erholung nicht einheitlich, sondern ist in den Industrieländern aufgrund des größeren...

In this paper, we provide a detailed analysis of a mechanism that distorts production towards too much use of primary factors like labor and too little use of intermediate inputs. The distortion results from two ingredients that are cornerstones of modern quantitative trade theory: monopolistic...

In this paper, we construct an elaborate general equilibrium model with a continuum of production fragments for an intermediate good, then embed it in a growth model to address the effects of global production fragmentation, vertical specialization and trade on growth and inequality for a small...

Verschiedene Branchen beklagen sich nach Ende der ersten Lockdowns über empfindliche Lieferengpässe und Preissteigerungen bei Vorleistungsgütern. Teils mag dies den steigenden Energiekosten geschuldet sein, teils sind in den unterschiedlichen Industrien preistreibende Sondereffekte...

We develop a model of vertical mergers with open auctions upstream, This setting may be appropriate for industries where inputs are procured via auction-like "requests for proposal." For example, Drennan et al (2020) reports that a model of this type was used during the CVS-Aetna merger...

This paper constructs and uses the global input-output (GIO) table with 35 industries, 29 endogenous countries and 59 exogenous countries, and develops new indices to measure the degree of shock transmission in terms of intermediate goods and value-added embodied in production induced by...

Regional trade agreements must specify domestic-content rules (rules of origin) that define the conditions under which a good qualifies as 'domestic' and so may be freely traded within the block. The paper analyzes such rules, focussing in particular on oligopolistic industries in which foreign...

It is often argued that changes in expectation are an important driving force of the business cycle. However, it is well known that changes in expectations cannot generate positive co-movement between consumption, investment and employment in the most standard neo-classical business cycle...

We introduce a new method for conditioning out serially correlated unobserved shocks to the production technology by building ideas first developed in Olley and Pakes (1996). Olley and Pakes show how to use investment to control for correlation between input levels and the unobserved...

This paper argues that export subsidies aimed at shifting rents from foreign to domestic producers of a final good may also serve to shift rents to foreign firms supplying an intermediate good, weakening the incentive for the subsidy. By contrast, assuming Cournot competition for both the final...

One critical aspect of economic development is that productivity growth and a rising standard of living are realized through more roundabout methods of production and increasing specialization of intermediate inputs and producer services. We use an extended version of the Judd-Grossman-Helpman...

Conventional analysis in the trade-industrial-organization literature suggests that, when a country has some market power over an imported good, some small level of protection must be welfare improving. This is essentially a terms-of-trade argument that is reinforced if the imported goods are...

In recent decades, growth of overall world trade has been driven in large part by the rapid growth of trade in intermediate inputs. Much of this input trade involves multinational firms locating input processing in their foreign affiliates, thereby creating global vertical production networks....