eprintid: 4078
rev_number: 9
eprint_status: archive
userid: 69
dir: disk0/00/00/40/78
datestamp: 2020-09-02 14:12:07
lastmod: 2020-09-02 14:12:07
status_changed: 2020-09-02 14:12:07
type: monograph
metadata_visibility: show
creators_name: Rungi, Armando
creators_name: Fattorini, Loredana
creators_name: Huremovic, Kenan
creators_id: armando.rungi@imtlucca.it
creators_id: loredana.fattorini@alumni.imtlucca.it
creators_id: kenan.huremovic@imtlucca.it
title: Measuring the Input Rank in Global
Supply Networks
ispublished: pub
subjects: HA
subjects: HF
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: Keywords: Global Value Chains; Input Output tables; production networks; vertical
integration; multinational enterprises; downstreamness
JEL Codes: F23; L23; D23; C63; C67
abstract: We introduce the Input Rank as a measure of relevance of direct and indirect suppliers
in Global Value Chains. We conceive an intermediate input to be more relevant for a
downstream buyer if a decrease in that input’s productivity affects that buyer more.
In particular, in our framework, the relevance of any input depends on: i) the network
position of the supplier relative to the buyer, ii) the patterns of intermediate inputs
vs. labor intensities connecting the buyer and the supplier, iii) and the competitive
pressures along supply chains. After we compute the Input Rank from both U.S. and
world Input-Output tables, we provide useful insights on the crucial role of services
inputs as well as on the relatively higher relevance of domestic suppliers and suppliers
coming from regionally integrated partners. Finally, we test that the Input Rank is a
good predictor of vertical integration choices made by 20,489 U.S. parent companies
controlling 154,836 subsidiaries worldwide.
date: 2020-09
date_type: published
place_of_pub: Lucca
pages: 44
institution: IMT School for Advanced Studies Lucca
issn: 2279 6894
citation:   Rungi, Armando and Fattorini, Loredana and Huremovic, Kenan  Measuring the Input Rank in Global Supply Networks.  EIC working paper series    ISSN 2279 6894.      
document_url: http://eprints.imtlucca.it/4078/1/EIC-WP_2-2020.pdf