EconPapers    
Economics at your fingertips  
 

GVC journeys: Industrialisation and Deindustrialisation in the Age of the Second Unbundling

Richard Baldwin () and Toshihiro Okubo ()

No e136, Working Papers from Tokyo Center for Economic Research

Abstract: Offshoring and participation in Global Value Chains (GVCs) are critical to understanding the rapid deindustrialisation of G7 nations and the rapid industrialisation of a handful of developing nations. This paper distinguishes between trade in final goods and trade in parts to track the shifting pattern of the location of manufacturing. We introduce a simple empirical measure of comparative advantage in parts on one hand and in final goods on the other. We illustrate how this distinction can help organise thinking on the patterns of industrialisation and deindustrialisation-namely the "GVC journeys" of advanced and emerging economies. We also provide one simple model. The model highlights the interactions of trade costs and the knowledge transfers to accompany offshoring of parts production and assembly, which we call trade-led versus knowledge-led globalisation.

Pages: 29 pages
Date: 2019-08
New Economics Papers: this item is included in nep-int and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
https://www.tcer.or.jp/wp/pdf/e136.pdf (application/pdf)

Related works:
Journal Article: GVC journeys: Industrialisation and deindustrialisation in the age of the second unbundling (2019) Downloads
Working Paper: GVC journeys: Industrialisation and Deindustrialisation in the Age of the Second Unbundling (2019) Downloads
Chapter: GVC Journeys: Industrialisation and Deindustrialisation in the Age of the Second Unbundling (2018)
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:tcr:wpaper:e136

Access Statistics for this paper

More papers in Working Papers from Tokyo Center for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2023-02-04
Handle: RePEc:tcr:wpaper:e136