EconPapers    
Economics at your fingertips  
 

Trade Integration, Global Value Chains, and Capital Accumulation

Michael Sposi, Kei-Mu Yi and Jing Zhang

No 28087, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Motivated by increasing trade and fragmentation of production across countries, accompanied by income convergence by many emerging economies, we build a dynamic two-country model featuring sequential, multi-stage production and capital accumulation. As trade costs decline over time, global-value-chain (GVC) trade expands across countries, particularly more in the faster growing country, consistent with the empirical pattern. Via Heckscher-Ohlin forces, GVC trade can generate back-and-forth feedback between comparative advantage and capital accumulation (growth). Moreover, GVC trade increases both steady-state and dynamic gains from trade.

JEL-codes: E22 F10 F43 O4 (search for similar items in EconPapers)
Date: 2020-11
New Economics Papers: this item is included in nep-dge, nep-gro, nep-int and nep-mac
Note: IFM ITI
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published as Michael Sposi & Kei-Mu Yi & Jing Zhang, 2021. "Trade Integration, Global Value Chains, and Capital Accumulation," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(3), pages 505-539, September.

Downloads: (external link)
http://www.nber.org/papers/w28087.pdf (application/pdf)

Related works:
Journal Article: Trade Integration, Global Value Chains, and Capital Accumulation (2021) Downloads
Working Paper: Trade Integration, Global Value Chains and Capital Accumulation (2020) Downloads
Working Paper: Trade Integration, Global Value Chains, and Capital Accumulation (2020) Downloads
Working Paper: Trade Integration, Global Value Chains, and Capital Accumulation (2020) Downloads
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:28087

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w28087

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 ().

 
Page updated 2025-03-31
Handle: RePEc:nbr:nberwo:28087