@article{eprints3855,
           title = {The smile curve at the firm level: Where value is added along supply chains},
            year = {2018},
          author = {Armando Rungi and Davide Del Prete},
         journal = {Economics Letters},
           pages = {38--42},
       publisher = {Elsevier},
          volume = {164},
             url = {http://eprints.imtlucca.it/3855/},
        abstract = {In this paper, we investigate at the firm-level where value is added along supply chains on a sample of about 2 million firms in the European Union. In line with the hypothesis of a ?smile curve?, we detect a non-linear U-shaped relationship between the value added content of a firm and its distance from final consumption. Tasks at the early and late stages of the supply chains generate higher value added, possibly due to a higher knowledge-intensity, after controlling for firm heterogeneity. Importantly, our work shows that it is possible to exploit firm-level databases for an empirical microfoundation of value generation, which is useful for understanding the possibly unequal benefits of participating in global value chains.},
        keywords = {Global value chains; Firm level; Smile curve; Downstreamness; Value added}
}