About the project
A defining feature of the global economy is the gradual fragmentation of production across firms and borders, a phenomenon that has been termed outsourcing or global value chains.
State-of-the-art empirical economic analysis on value chains has mostly been limited to the study of aggregate data because there is limited data on actual firm-to-firm linkages in the global economy. Even less is currently known about which products are typically outsourced, and which workers are affected. This project is changing that by bringing together four unique firm-to-firm datasets on local and global value chains that will push the research frontier forward in two main directions:
- Previous research has shown that economic integration encourages growth. Due to data limitations, however, we know little about the origins of growth, and to what extent the emergence of value chains can explain the growth response. New theory is needed, where firm-to-firm connections are endogenously formed in response to economic integration. The project will confront theory with data and directly test whether integration facilitates new buyer-supplier relationships and growth.
- Previous research has found that economic integration has large negative effects on wages for low-skill workers. But again, due to data limitations, it is unclear to what extent value chains are responsible for this. Simply put, the impact of outsourcing on wages will depend on which workers are displaced by outsourcing. Until now, researchers have not been able to observe which workers, along with their occupations and skills, that are employed in both the supplying and outsourcing firm. For the first time, this information will be available, allowing for a rich analysis of labor market effects for different skill groups.
GLOBALPROD will inform policymakers about how wages for different types of skills change in response to globalization, but also how economic integration can promote efficiency and competitiveness.
Previous events
2017: Workshop on Trade, Growth and Firm Dynamics
Time and place: June 26, 2017 8:50 AM – June 27, 2017 2:00 PM, Professorboligen, Karl Johans gate 47
The Department of Economics and BI (Norwegian Business School), are organizing a workshop on trade, growth and firm dynamics. The workshop is funded by the department's research project GLOBALPROD.
Keynote speakers
- Ariel Burstein- University of California, Los Angeles
- Jonathan Eaton- Pennsylvania State University
- Chang-Tai Hsieh- The University of Chicago Booth School of Business
- Erzo Luttmer- University of Minnesota
- Andres Rodriguez-Clare- University of California, Berkeley
Programme
Monday June 26th
- 8.50 Opening Address
- 9.00 – 10.00 Glenn Magerman - Université Libre de Bruxelles: “The Origins of Firm Heterogeneity: A Production Network Approach”
- Joint with Andrew Bernard, Emmanuel Dhyne, Kalina Manova and Andreas Moxnes
- 10.00 – 11.00 Erzo G.J. Luttmer - University of Minnesota: “An Assignment Model of Knowledge Diffusion and Income Inequality”
- 11.30 – 12.30 Andrés Rodríguez-Clare - University of California, Berkeley: “Sector Level Economies of Scale: Estimation Using Trade Data”
- Joint with Dominick Bartelme, Arnaud Costinot and Dave Donaldson
- 12.30 – 13.30 Lunch
- 13.30 – 14.30 Jonathan Eaton - Pennsylvania State University: “The Gravity of Unit Values”
- Joint with Ana Cecilia Fieler
- 14.30 – 15.30 Veronica Rappoport - London School of Economics: “The Birth of a Multinational: Innovation and Foreign Acquisitions”
- Joint with Jim Goldman and Maria Guadalupe
- 16.00 – 17.00 Giammario Impullitti - University of Nottingham: “Innovation and Trade Policy in a Globalizing World”
- Joint with Ufuk Akcigit and Sina Ates
- Workshop dinner at Lille Herbern
Tuesday June 27th
- 8.30 – 9.30 Johannes Boehm - Sciences Po: “Misallocation in the Market for Inputs”
- Joint with Ezra Oberfield
- 9.30 – 10.30 Chang-Tai Hsieh - The University of Chicago Booth School of Business: “How Destructive is Innovation”
- Joint with Daniel Garcia-Macia and Pete Klenow
- 11.00 – 12.00 Ariel Burstein - University of California, Los Angeles: “The Aggregate Implications of Innovative Investment in the Garcia-Macia, Hsieh, and Klenow Model”
- Joint with Andrew Atkeson
- 12.00 – 13.00 Salomé Baslandze - Einaudi Institute for Economics and Finance: “Firm Dynamics under the Moonlight: The Role of Political Connections”
- Joint with Ufuk Akcigit and Francesca Lotti
- 13.00 – 14.00 Lunch
