The Supply Chain Economy: How Far Does It Spread in Space and Time?
M. Jovanović (2019), “The Supply Chain Economy: How Far does it Spread in Space and Time?”, Economia Internazionale/International Economics, Vol. 72, no. 4, November - pp. 393-452.
60 Pages Posted: 15 Nov 2019 Last revised: 22 Dec 2019
Date Written: November 6, 2019
The supply chain economy provides grounds for a non-linear economic leapfrog start in development. Rather than specializing in the whole production procedure, the new model enables specialization in production segments. All process links are related and must be of an identical high standard. The differential treatment of developing countries is therefore not acceptable in this economic model. Statistics provision and trade policy need to change. Duties must be either eliminated or applied on a value-added basis. A new wave of protectionism is testing the spread of the supply chain economy. Three-dimensional printing may pose a challenge to the length and future spread of value chains.
Keywords: global value chain, fragmentation, unbundling, offshoring, trade, standards, integration, 3D printing
JEL Classification: F01, F10, F13, F15, F23, L23, O14, O25, O31
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