eprintid: 1866
rev_number: 20
eprint_status: archive
userid: 6
dir: disk0/00/00/18/66
datestamp: 2013-11-05 15:47:57
lastmod: 2014-05-12 09:50:04
status_changed: 2014-05-12 09:50:04
type: monograph
metadata_visibility: show
creators_name: Altomonte, Carlo
creators_name: Di Mauro, Filippo
creators_name: Ottaviano, Gianmarco
creators_name: Rungi, Armando
creators_name: Vicard, VIncent
creators_id: 
creators_id: 
creators_id: 
creators_id: armando.rungi@imtlucca.it
creators_id: 
title: Global value chains during the great trade collapse: a bullwhip effect?
ispublished: pub
subjects: HB
subjects: HD
divisions: EIC
full_text_status: public
monograph_type: working_paper
keywords: Global value chains; Hierarchies of firms; Integration; Multinational firms; Trade collapse; Vertical; 
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 intrafirm 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 (intragroup 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
date: 2013
date_type: published
publication: Rivista italiana degli economisti
number: 1412
publisher: European Central Bank
pages: 26
institution: IMT Institute for Advanced Studies Lucca
refereed: TRUE
issn: 1725-2806
citation:   Altomonte, Carlo and Di Mauro, Filippo and Ottaviano, Gianmarco and Rungi, Armando and Vicard, VIncent  Global value chains during the great trade collapse: a bullwhip effect?  Working Paper  #1412/2013    European Central Bank    ISSN 1725-2806.      
document_url: http://eprints.imtlucca.it/1866/1/European%20Central%20Bank_Rungi.pdf