Global Value Chains

Abstract

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Joining and Exiting the Value Chain of Multinationals and the Performance of Suppliers: Evidence from Inter-Firm Transaction Data

“…Our paper contributes to the literature on the effects of multinational firms and global value chains (see also recent literature review by Antràs and Chor 2021) by being one of the early papers to study the effects of formation and, to the best of our knowledge, a first to study the effects of the termination of firm-to-firm transaction linkages with MNEs on the productivity of their local supplier firms. A recent study directly related to ours is by Alfaro-Ureña et al (2020).…”

Large-scale multinational shocks and international trade: a non-zero-sum game

“…New trade theories developed since the 1980s have focussed on fragmentation of production processes and intra-industry trade -due to economies of scales, product differentiation, and imperfect competition -and on the heterogeneity of productivity at firm level. Particularly on the topic of Global Value Chains (GVC), IO data play a crucial role in the development of an empirical literature that has put forward indicators based on value-added in trade (for a recent overview see Antràs & Chor, 2021). 3 The GVC approach uses global IO tables to trace the production stages through countries or regions, and the relationship of this methodology with basic IO methods is well explained in Los (2017).…”

“… See Baldwin and Venables (1995) for a critical assessment of CGE models used to evaluate the impact of several regional integration agreements.5 The claimed parsimony of this approach is limited by the requirement of calibrating all parameters of these models to fit exactly the data including parameters for those pairs of bilateral trade flows taking a value of zero(Antràs & Chor, 2021). 6 This model is an extension ofEaton and Kortum (2002) to a multi-sector economy.7 As surveyed byAntràs and Chor (2021), theCaliendo and Parro (2015) model has been used for several counterfactual studies on the effects of trade wars, trade agreements and, more recently, the Covid-19 shock(Eppinger et al, 2020).…”

“… See Baldwin and Venables (1995) for a critical assessment of CGE models used to evaluate the impact of several regional integration agreements.5 The claimed parsimony of this approach is limited by the requirement of calibrating all parameters of these models to fit exactly the data including parameters for those pairs of bilateral trade flows taking a value of zero(Antràs & Chor, 2021). 6 This model is an extension ofEaton and Kortum (2002) to a multi-sector economy.7 As surveyed byAntràs and Chor (2021), theCaliendo and Parro (2015) model has been used for several counterfactual studies on the effects of trade wars, trade agreements and, more recently, the Covid-19 shock(Eppinger et al, 2020). 8 Perfect competition as inArmington (1969), monopolistic competition with homogeneous firms as inKrugman (1980) and monopolistic competition with heterogeneous firms as inMelitz (2003).9 Structural parameters are either estimated with the dataset used in the analysis(Caliendo & Parro, 2015) or calibrated with elasticities from previous economic literature (seeVandenbussche et al, 2017Vandenbussche et al, , 2018, for a recent example).…”

Self-Harming Trade Policy? Protectionism and Production Networks

“…Finally, our paper is also related to the burgeoning literature that studies the emergence of global value chains-see Antràs and Chor (2021) for an exhaustive review-and their implications for aggregate dynamics (e.g., di Giovanni and Levchenko, 2010).…”