Found 15 article(s) for author 'Pol Antras'

Pol Antràs on Trade, Taxation, Solutions for Income Inequality, and the Future of Globalization

Pol Antràs on Trade, Taxation, Solutions for Income Inequality, and the Future of Globalization August 2019. GrowthPolicy’s Devjani Roy interviewed Pol Antràs, Robert G. Ory Professor of Economics at Harvard University, on trade, taxation, solutions for income inequality, and the future of globalization. | Click here for more interviews like this one. Links: Pol Antràs’s faculty page […]

Tags:

On the Measurement of Upstreamness and Downstreamness in Global Value Chains

On the Measurement of Upstreamness and Downstreamness in Global Value Chains. Pol Antras, October 30, 2017, Paper, “This paper offers four contributions to the empirical literature on global value chains (GVCs). First, we provide a succinct overview of several measures developed to capture the upstreamness or downstreamness of industries and countries in GVCs. Second, we employ data from the World Input-Output Database (WIOD) to document the empirical evolution of these measures over the period 1995-2011; in doing so, we highlight salient patterns related to countries’ GVC positioning – as well as some puzzling correlations – that emerge from the data. Third, we develop a theoretical framework – which builds on Caliendo and Parro’s (2015) variant of the Eaton and Kortum (2002) model – that provides a structural interpretation of all the entries of the WIOD in a given year.Link

Tags: , , ,

Venting Out: Exports during a Domestic Slump

Venting Out: Exports during a Domestic Slump. Pol Antras, October 23, 2017, Paper, “Using Spanish firm level data for the period 2000-2013, we explore the differences in the export behavior of firms during the years of sustained economic growth, 2000-2008, and during the Great Recession years, 2009-2013. Exploiting geographical variation in the reduction in domestic demand caused by the financial crisis, we document empirically the existence of a robust, within-firm negative causal relationship between domestic sales and export flows: firms whose domestic sales were reduced by more during the crisis observed a larger increase in their export flows. This negative relationship between domestic sales and export flows reflects the capacity of export markets to counteract the negative impact of local demand shocks.Link

Tags: , , , ,

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

Tags: , , , ,

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

Tags: , , , , , , , ,

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

Tags: , , ,

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

Tags: ,

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

Tags: , , ,

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

Tags: , , , , ,