Jakubik, Adam; Stolzenburg, Victor - 2019 - Manuscript date: November 2019
The geography of global value chains (GVCs) depends crucially on trade costs between countries hosting various stages … of production. Some stages might be more sensitive to trade costs than others. In this paper, we exploit a value …-added stages will more easily reroute given changes in trade costs between importing and exporting countries than high value …