@techreport{eprints3833,
       publisher = {IMT School for Advanced Studies Lucca},
     institution = {IMT School for Advanced Studies Lucca},
            type = {EIC working paper series},
           month = {November},
          author = {Loredana Fattorini and Armando Rungi and Zhen Zhu},
           title = {The Organization of Global Supply Networks},
            year = {2017},
        keywords = {Keywords: global value chains, supply networks, vertical integration, upstreamness,
firm theory.   -  JEL Classification Numbers: F23, L23, L22, D57, F14.},
             url = {http://eprints.imtlucca.it/3833/},
        abstract = {In this contribution, we introduce a network approach for the organization of global
production across national borders, beyond the sequential industry-level metrics proposed
in the previous literature. First, we show and argue that several characteristics of
global production processes would be lost in the analysis when assuming that they could
be proxied as linear sequences. Hence, we propose an index that assesses the relevance
of any input for the target output, including its role as an input of inputs. Thereafter,
we exploit an own-built firm-level dataset of about 20,489 U.S. parent companies integrating
more than 154,000 affiliates worldwide. Results show that the technological
relevance of an input in a directed supply network is also a good predictor for: i) the
probability that an input industry is actually integrated within a firm boundary; ii) the
number of affiliates that are controlled by the parent company and active in that input
industry.}
}