On the Geography of Global Value Chains

Pol Antras and Alonso de Gortari

No 23456, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper develops a multi-stage general-equilibrium model of global value chains (GVCs) and studies the specialization of countries within GVCs in a world with barriers to international trade. With costly trade, the optimal location of production of a given stage in a GVC is not only a function of the marginal cost at which that stage can be produced in a given country, but is also shaped by the proximity of that location to the precedent and the subsequent desired locations of production. We show that, other things equal, it is optimal to locate relatively downstream stages of production in relatively central locations. We also develop and estimate a tractable, quantifiable version of our model that illustrates how changes in trade costs affect the extent to which various countries participate in domestic, regional or global value chains, and traces the real income consequences of these changes.

JEL-codes: C67 D21 D57 D58 F11 F14 F60 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-dcm, nep-int and nep-opm
Note: EFG IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50)

Published as Pol Antràs & Alonso de Gortari, 2020. "On the Geography of Global Value Chains," Econometrica, Econometric Society, vol. 88(4), pages 1553-1598, July.

Downloads: (external link)
http://www.nber.org/papers/w23456.pdf (application/pdf)

Related works:
Journal Article: On the Geography of Global Value Chains (2020)
Working Paper: On the Geography of Global Value Chains (2017)
Working Paper: On the Geography of Global Value Chains (2016)
Working Paper: On the Geography of Global Value Chains (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:23456

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w23456

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().