A Coasian model of international production chains

October 6, 2015

This paper provides an analytical treatment of trade and welfare responses to trade cost change in a simple two-country model. To explore the model's implications in a richer setting, the model is calibrated to match key observables in East Asia, and the calibrated model is used to evaluate implications of changes in model parameters for trade, welfare, the length of supply chains, and countries' relative position within them.

Read Full Material: Link


Topics: GLOBAL VALUE CHAINS (GVCS)

Regions: EAST ASIA

Authors: THIBAULT FALLY RUSSEL HENRY HILLBERRY

Publishing Institution: WORLD BANK GROUP

RTA

Other Research

RTA

Trade and Integration Monitor 2017: Beyond the Recovery, Competing for Market Share in the Digital Era

November 15, 2017

The value of exports from Latin America and the Caribbean (LAC) started to recover in 2016, and increased a notable 13.2% year-on-year in the first half of 2017. The regional recovery, however, was... READ MORE

RTA

Going It Alone in the Asia-Pacific: Regional Trade Agreements Without the United States

October 5, 2017

The withdrawal of the United States from the Trans-Pacific Partnership (TPP) in early 2017 led the remaining 11 countries in that trade and investment agreement to explore alternative ways to susta... READ MORE