Found 11 article(s) for author 'Pol Antras'

On the Geography of Global Value Chains

On the Geography of Global Value Chains. Pol Antras, 2016, Paper, “This paper studies the optimal location of production for the different stages in a sequential global value chain. We develop a general-equilibrium model featuring a proximity-concentration tradeoff: slicing global value chains across countries allows to better exploit agglomeration economies, but such fragmentation comes at the cost of increased transportation costs. We show that, other things equal, it is optimal to locate relatively downstream stages of production in relatively central or well-connected locations, while upstream stages of production are optimally assigned to more remote locations.Link

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Globalization, Inequality and Welfare

Globalization, Inequality and Welfare. Pol Antras, September 19, 2016, Paper, “This paper studies the welfare implications of trade opening in a world in which trade raises aggregate income but also increases income inequality, and in which redistribution needs to occur via a distortionary income tax-transfer system. We provide tools to characterize and quantify the effects of trade opening on the distribution of disposable income (after redistribution). We propose two adjustments to standard measures of the welfare gains from trade: a ‘welfarist’ correction inspired by the Atkinson (1970) index of inequality, and a ‘costly-redistribution’ correction capturing the efficiency costs associated with the behavioral responses of agents to trade-induced shifts across marginal tax rates.Link

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Made in the World – Global Production: Firms, Contracts, and Trade Structure

Made in the World – Global Production: Firms, Contracts, and Trade Structure. Pol Antras, 2016, Book Chapter, “Global Production is the first book to provide a fully comprehensive overview of the complicated issues facing multinational companies and their global sourcing strategies. Few international trade transactions today are based on the exchange of finished goods; rather, the majority of transactions are dominated by sales of individual components and intermediary services. Many firms organize global production around offshoring parts, components, and services to producers in distant countries, and contracts are drawn up specific to the parties and distinct legal systems involved. Pol Antràs examines the contractual frictions that arise in the international system of production and how these frictions influence the world economy.Link

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Inequality, Costly Redistribution and Welfare in an Open Economy

Inequality, Costly Redistribution and Welfare in an Open Economy. Pol Antras, December 10, 2015, Paper. “Trade integration raises real income but often increases inequality and might make some worse off.  Standard approach to demonstrating and quantifying the gains from trade largely ignores trade-induced inequality. Kaldor-Hicks compensation principle. Two basic shortcomings with this approach: 1. How much compensation/redistribution actually takes place? 2. Is this redistribution costless, as the Kaldor-Hicks approach assumes?Link

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Poultry in Motion: A Study of International Trade Finance Practices

Poultry in Motion: A Study of International Trade Finance Practices. Pol Antras, C. Fritz Foley, August 2015, Paper, “This paper theoretically and empirically analyzes the financing terms that support international trade. The choice of trade finance terms balances the risk that an importer defaults on an exporter and the possibility that an exporter does not deliver goods as specified. Analysis of transaction-level data from a US exporter reveals that importers located in countries with weak enforcement of contracts typically finance transactions, but these firms are able to overcome the constraints of such environments if they can establish a relationship with the exporter. Furthermore, the manner in which trade is financed shapes the impact of crises.”  Link

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Internalizing Global Value Chains: A Firm-Level Analysis

Internalizing Global Value Chains: A Firm-Level Analysis. Laura Alfaro, Pol Antras, April 2015, Paper. “In recent decades, technological progress and falling trade barriers have allowed firms to slice up their value chains, retaining within their boundaries and in their domestic economies only a subset of their production stages. A key question facing firms worldwide is figuring out which segments of the value chain are more profitably o§shored, outsourced, or both. Building on Antras and Chor (2013), we describe a property-rights model in which the organization of a firm’s manufacturing process is shaped by characteristics of the different stages of production and their position in the value chain…” Link

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Poultry in Motion: A Study of International Trade Finance Practices

Poultry in Motion: A Study of International Trade Finance Practices. Pol Antras, C. Fritz Foley, May 2014, Paper. “This paper analyzes the financing terms that support international trade and sheds light on how these terms shape the impact of economic shocks on trade. Analysis of transaction-level data from a U.S.-based exporter of frozen and refrigerated food products, primarily poultry, reveals broad patterns about the use of alternative financing terms. These patterns help discipline a model in which the choice of trade finance terms is shaped by the risk that an importer defaults on an exporter…” Link verified August 21, 2014

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The Margins of Global Sourcing: Theory and Evidence from U.S. Firms

The Margins of Global Sourcing: Theory and Evidence from U.S. Firms. Pol Antras, March 13, 2014, Paper. “This paper studies the extensive and intensive margins of firms’ global sourcing decisions. First, it presents three new facts on U.S. firms’ import behavior that highlight the importance of the extensive margin in explaining cross-sectional variation in U.S. import volumes. These facts motivate the development of a quantifiable multi-country global sourcing model with heterogeneous firms, in which firms self-select into importing based on their productivity and country-specific variables (wages, trade costs…” Link verified August 21, 2014

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Grossman–Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production

Grossman–Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production. Pol Antras, February 17, 2013, Paper. “I survey the influence of Grossman and Hart’s (1986. “The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration,” 94 Journal of Political Economy 691–719.) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows…”  Link verified March 28, 2014

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Multinational Firms and the Structure of International Trade

Multinational Firms and the Structure of International Trade. Pol Antras, February 2013, Paper. “This article reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are located? Finally, why do firms own foreign facilities rather than simply contract with local producers or distributors? We organize our exposition of the trade literature on multinational firms around the workhorse monopolistic competition…”  Link verified March 28, 2014

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