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).