Séminaire

On the Geography of Global Value Chains

Development, labor and public policy/Macroeconomics joint seminar

Pol Antràs (Harvard University)

4 mai 2017, 11h00–12h30

Toulouse

Salle MF 323

Development, Labor and Public Policy Seminar

Résumé

This paper develops a multi-stage general-equilibrium model of global value chains (GVCs). With costly trade, the optimal location of production of a given stage 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 a tractable, quantifiable version of our model that illustrates how changes in trade frictions affect the extent to which various countries participate in domestic, regional or global value chains, and traces the real income consequences of these changes.(with Alonso de Gortari).