Abstract

http://ssrn.com/abstract=2008674
 
 

References (32)



 
 

Citations (2)



 


 



Global Value Chains During the Great Trade Collapse: A Bullwhip Effect?


Carlo Altomonte


Bocconi University - Department of Policy Analysis and Public Management

Filippo Di Mauro


European Central Bank (ECB)

Gianmarco I.P. Ottaviano


Bocconi University - Department of Economics and Paolo Baffi Centre on Central Banking and Financial Regulation

Armando Rungi


University of Warsaw - Faculty of Economic Sciences; Fondazione Eni Enrico Mattei (FEEM); Bocconi University

Vincent Vicard


Banque de France

February 2012

Banque de France Working Paper No. 364

Abstract:     
This paper analyzes the performance of global value chains during the trade collapse. To do so, it exploits a unique transaction-level dataset on French firms containing information on cross-border monthly transactions matched with data on worldwide intra-firm linkages as defined by property rights (multinational business groups, hierarchies of firms). This newly assembled dataset allows us to distinguish firm-level transactions among two alternative organizational modes of global value chains: internalization of activities (intra-group trade/trade among related parties) or establishment of supply contracts (arm’s length trade/trade among unrelated parties). After an overall assessment of the role of global value chains during the trade collapse, we document that intra-group trade in intermediates was characterized by a faster drop followed by a faster recovery than arm’s length trade. Amplified fluctuations in terms of trade elasticities by value chains have been referred to as the 'bullwhip effect' and have been attributed to the adjustment of inventories within supply chains. In this paper we first confirm the existence of such an effect due to trade in intermediates, and we underline the role that different organizational modes can play in driving this adjustment.

Number of Pages in PDF File: 27

Keywords: trade collapse, multinational firms, global value chains, hierarchies of firms, vertical integration

JEL Classification: F23, F15, L22

working papers series


Download This Paper

Date posted: February 21, 2012  

Suggested Citation

Altomonte, Carlo and di Mauro, Filippo and Ottaviano, Gianmarco I.P. and Rungi, Armando and Vicard, Vincent, Global Value Chains During the Great Trade Collapse: A Bullwhip Effect? (February 2012). Banque de France Working Paper No. 364. Available at SSRN: http://ssrn.com/abstract=2008674 or http://dx.doi.org/10.2139/ssrn.2008674

Contact Information

Carlo Altomonte (Contact Author)
Bocconi University - Department of Policy Analysis and Public Management ( email )
Via Roentgen 1
Milan, 20136
Italy
Filippo Di Mauro
European Central Bank (ECB) ( email )
Kaiserstrasse 29
Frankfurt am Main, D-60311
Germany
Gianmarco I.P. Ottaviano
Bocconi University - Department of Economics and Paolo Baffi Centre on Central Banking and Financial Regulation ( email )
Via Gobbi 5
Milan, 20136
Italy
Armando Rungi
University of Warsaw - Faculty of Economic Sciences ( email )
Dluga Street 44/50
Warsaw, 00-241
Poland
Fondazione Eni Enrico Mattei (FEEM) ( email )
C.so Magenta 63
Milano, 20123
Italy
Bocconi University ( email )
Via Sarfatti, 25
Milan, MI 20136
Italy
Vincent Vicard
Banque de France ( email )
Paris
France
Feedback to SSRN


Paper statistics
Abstract Views: 299
Downloads: 35
References:  32
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.469 seconds