Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone

Jyrki Ali-Yrkkö, Petri Rouvinen, Timo Seppälä and Pekka Ylä-Anttila

No 1240, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The phone was assembled in Finland and China. In the case when the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even in the case when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it had little role in supplying the physical components. Our analysis illustrates that international trade statistics can be misleading; the capture of value added is largely detached from the physical goods flows. It is rather services and other intangible aspects of the supply chain that dominate. While final assembly commanding 2% of the value added in our case has increasingly moved offshore, the developed countries continue to capture most of the value added gener-ated by global supply chains.

Keywords: global supply chains; international trade; value capture (search for similar items in EconPapers)
JEL-codes: F14 F23 L22 L23 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011
New Economics Papers: this item is included in nep-int
References: View complete reference list from CitEc
Citations: View citations in EconPapers (62)

Downloads: (external link)
http://www.etla.fi/wp-content/uploads/2012/09/dp1240.pdf (application/pdf)

Related works:
Journal Article: Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone (2011)
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:rif:dpaper:1240

Ordering information: This working paper can be ordered from
https://www.etla.fi/en/publications/dp1240-en/

The price is 10€.

Access Statistics for this paper

More papers in Discussion Papers from The Research Institute of the Finnish Economy Contact information at EDIRC.
Bibliographic data for series maintained by Kaija Hyvönen-Rajecki ().