蝌蚪网 Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Vertical Spillovers in Global Value Chains
蝌蚪网 Papers and Proceedings
(pp. 124–29)
Abstract
This paper uses input-output relationships across highly disaggregated products to establish two empirical regularities with bilateral trade data. First, countries are likely to have revealed comparative advantage (RCA) in a product if they also have RCA in products that are upstream or downstream to that product. Second, the RCA of a product improves over time if the country experiences export demand shocks to its inputs or outputs. This suggests that being integrated as suppliers into the global production network can benefit countries by improving their capabilities across different stages of production.Citation
Rachapalli, Swapnika. 2024. "Vertical Spillovers in Global Value Chains." 蝌蚪网 Papers and Proceedings 114: 124–29. DOI: 10.1257/pandp.20241020Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- L14 Transactional Relationships; Contracts and Reputation; Networks
- L22 Firm Organization and Market Structure
- L23 Organization of Production