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...

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...

The aim of the article is to evaluate the position in global value chains (GVCs) of food processing industries in the Visegrad countries (V4; Poland, Czechia, Hungary and Slovakia) between 1995 and 2018. To identify the intensity and forms of integration in GVC of these industries in each country...

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...

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...

Ziel dieser Studie ist es zum einen, auf dem Konzept der Pfadabhängigkeit und der ökonomischen Komplexität aufbauend, die langfristigen und gegenwärtigen Entwicklungen der österreichischen Exportwirtschaft zu beleuchten. Welche Ökonomien konnten in den letzten zwei Jahrzehnten erfolgreich...

We study how disruptions to the supply of foreign critical inputs (FCIs) - that is, inputs primarily sourced from extra-EU countries with highly concentrated supply, advanced technology products, or which are key to the green transition - might affect value added at different levels of...

According to the general consensus in academia, Ricardo's theory of international trade embodies the theory of comparative advantage. The principle of comparative advantage he proposed, based on the model of physical trade and employing comparative cost analysis, holds that comparative advantage...

Under the notion of strategic coupling, GPN scholarship acknowledges the pivotal role of firms and non-firm actors in integrating regions into value chains and in regional development. However, the GPN 2.0 approach has focused largely on firms with limited attention to state managers' practices...

We examine changes in the manufacturing sector value chains of the EU, US, China, and India between 2018 and 2023 by introducing three metrics for supply-chain vulnerability. For our first metric, the physical length of a supply chain based on the distance between the producer of the final...

The adverse effects of the climate crisis call for a structural change in the economy toward less environmentally disruptive development pathways. To address decarbonisation, hydrogen seems to be the most promising element to complement renewable energy. However, the dominant technology for its...

This work assesses the double harm of Global Value Chain (GVC) integration. Firstly, we take a within-country structural change perspective and investigate how the internal structure of country production, and thus the ensuing emission profile, evolves across development phases. Assessing the...

Trade barriers and poor infrastructure play an important role in limiting trade integration in Latin America and the Caribbean (LAC). Closing half of the infrastructure gap between LAC and advanced economies could lift exports by 30 percent. Reducing import tariffs could boost LAC's trade, but...

Do geopolitical tensions between countries influence the cross-border asset allocation of investment funds? Our answer is yes. We estimate gravity models and find that investment funds allocate smaller shares of their portfolios to recipient countries that are geopolitically more distant to...

We analyze the BRICs countries' role in Global Value Chains (GVCs) and their trade patterns in value-added and vertical specialization, using the World Input-Output Database (WIOD) from 2000-2014 with a decomposition model of intermediate goods and trade flows. Our findings reveal increased...

In light of recent global economic and geopolitical shocks threatening trade openness, this report aims to shed light on geoeconomic fragmentation and develops a rich set of new tools to assess its economic effects and implications for central banks. The report shows that, although global trade...

Purpose The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive...

This paper provides one of the first estimates of elasticities of substitution across suppliers within the same product. This paper estimates these elasticities using new real-time administrative tax data on firm-to-firm transactions, with product-level prices and quantities, leveraging...

Achieving net zero carbon emissions necessitates a systemic reorganization of global value chains, particularly in the ASEAN region, due to its growing role as a manufacturing hub. This study explores the interaction between global value chains (GVCs), globalization and sustainable development...

The world is witnessing growing turbulence stemming from geopolitics and a tangible threat of economic disintegration. There are some indications of globalization in retreat, international trade growth slowing down and a transition from optimizing efficiency of global value chains towards...

The global production networks (GPNs) perspective, to account for key aspects of the new global space, takes on its full dimension from a theoretical-methodological approach to capitalism in terms of historical-spatial phases of development, implying the existence of industrial cycles...

Ziel dieser Studie ist es zum einen, auf dem Konzept der Pfadabhängigkeit und der ökonomischen Komplexität aufbauend, die langfristigen und gegenwärtigen Entwicklungen der österreichischen Exportwirtschaft zu beleuchten. Welche Ökonomien konnten in den letzten zwei Jahrzehnten erfolgreich...