Found 2 article(s) for author 'value chains'

Multinational Firms, Value Chains, and Vertical Integration

Multinational Firms, Value Chains, and Vertical Integration.┬áLaura Alfaro, 2016, Paper, “In recent decades there has been a very rapid increase in flows of goods and capital between countries and between firms, driven by technological progress and falling cross-border restrictions. The rising ability to retain or outsource various production stages within firms and across country boundaries has fueled fragmentation of production and the emergence of global value chains. Cross-border production, investment, and trade in final and intermediate goods by multinational corporations (MNCs) are key drivers of this phenomenon.Link

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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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