GLOBALPROD The Global and Local Organization of Production

container ship

Photo: Colourbox

Status
Completed
Duration
01.01.2017–31.12.2021

European Research Council (ERC) Starting grant, 2017 - 2021.

Contact

  • Andreas Moxnes Principal Investigator
  • Daniel Fullman Research assistant

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

Participants

Publications

Articles

  • Bernard, Andrew B. and Moxnes, Andreas, 2018, “Networks and Trade”, Annual Review of Economics
  • Bernard, Andrew B., Moxnes, Andreas and Ulltveit-Moe, Karen Helene, 2018, “Two-Sided Heterogeneity and Trade”, Review of Economics and Statistics
  • Bernard, Andrew B., Moxnes, Andreas and Saito, Yukiko, 2019, “Production Networks, Geography and Firm Performance”, Journal of Policial Economy

 

Working papers

  • The Origins of Firm Heterogeneity: A Production Network Approach (2019), Andrew Bernard, Emmanuel Dhyne, Glenn Magerman, Andreas Moxnes, Kalina Manova, NBER Working Paper No. 25441
  • The Life-Cycle Dynamics of Exporters and Multinational Firms (2018), with Anna Gumpert, Andreas Moxnes, Natalia Ramondo and Felix Tintelnot, NBER Working Paper No. 24013.
  • GVCs and Trade Elasticities with Multistage Production (2019), with Robert C. Johnson and Andreas Moxnes, NBER Working Paper No. 26018.
  • Heterogeneous Workers, Trade, and Migration (2019), with Inga Heiland and W, Kohler, CESifo Working Paper Series 7355.
  • Felbermayr, Gabriel; Groeschl, Jasmin & Heiland, Inga (2022). Complex Europe: Quantifying the Cost of Disintegration. Journal of International Economics. ISSN 0022-1996. 138(103647). doi: 10.1016/j.jinteco.2022.103647. Full text in Research Archive
  • Heiland, Inga & Kohler, Wilhelm (2022). Heterogeneous Workers, Trade, and Migration. European Economic Review. ISSN 0014-2921. 144. doi: 10.1016/j.euroecorev.2022.104077. Full text in Research Archive
  • Gumpert, Anna; Li, Haishi; Moxnes, Andreas; Ramondo, Natalia & Tintelnot, Felix (2020). The life-cycle dynamics of exporters and multinational firms. Journal of International Economics. ISSN 0022-1996. 126. doi: 10.1016/j.jinteco.2020.103343. Full text in Research Archive
  • Heiland, Inga & Yalcin, Erdal (2020). Export Market Risk and the Role of State Credit Guarantees. International Economics and Economic Policy. ISSN 1612-4804. doi: 10.1007/s10368-020-00466-2. Full text in Research Archive
  • Bernard, Andrew; Moxnes, Andreas & Saito, Yukiko (2019). Production Networks, Geography and Firm Performance. Journal of Political Economy. ISSN 0022-3808. 127(2), p. 639–688. doi: 10.1086/700764. Full text in Research Archive
  • Bernard, Andrew; Moxnes, Andreas & Ulltveit-Moe, Karen Helene (2018). Two-sided heterogeneity and trade. Review of Economics and Statistics. ISSN 0034-6535. 100(3), p. 424–439. doi: 10.1162/rest_a_00721. Full text in Research Archive
  • Bernard, Andrew B & Moxnes, Andreas (2018). Networks and Trade. Annual Review of Economics. ISSN 1941-1383. 10, p. 65–85. doi: 10.1146/annurev-economics-080217-053506. Full text in Research Archive
  • Aichele, Rahel & Heiland, Inga (2018). Where is the value added? Trade liberalization and production networks. Journal of International Economics. ISSN 0022-1996. 115, p. 130–144. doi: 10.1016/j.jinteco.2018.09.002. Full text in Research Archive
  • Erbahar, Aksel & Zi, Yuan (2017). Cascading trade protection: Evidence from the US. Journal of International Economics. ISSN 0022-1996. 108, p. 274–299. doi: 10.1016/j.jinteco.2017.06.006. Full text in Research Archive

View all works in NVA

  • Heiland, Inga; Felbermayr, Gabriel & Gröschl, Jasmin (2020). Complex Europe: Quantifying the Cost of Disintegration. Centre for Economic Policy Research. Discussion papers. ISSN 0265-8003. Full text in Research Archive
  • Heiland, Inga; Moxnes, Andreas; Ulltveit-Moe, Karen Helene & Zi, Yuan (2019). Trade from space: Shipping networks and the global implications of local shocks. Centre for Economic Policy Research. Discussion papers. ISSN 0265-8003. Full text in Research Archive
  • Bernard, Andrew B; Magerman, Glenn; Dhyne, Emmanuel; Moxnes, Andreas & Manova, Kalina (2019). The Origins of Firm Heterogeneity: A Production Network Approach. The National Bureau of Economic Research. Full text in Research Archive
  • Johnson, Robert C & Moxnes, Andreas (2019). GVCs and Trade Elasticities with Multistage Production. The National Bureau of Economic Research. Full text in Research Archive
  • Heiland, Inga (2018). Heterogeneous Workers, Trade, and Migration. CESifo. Full text in Research Archive
  • Gumpert, Anna; Moxnes, Andreas; Ramondo, Natalia & Tintelnot, Felix (2018). The Life-Cycle Dynamics of Exporters and Multinational Firms. The National Bureau of Economic Research. Full text in Research Archive
  • Heiland, Inga & Kohler, Wilhelm (2018). Heterogeneous Workers, Trade, and Migration. Munich Society for the Promotion of Economic Research ‐ CESifo. Full text in Research Archive

View all works in NVA

Funding

European Research Counsil

Funded by the European Union (ERC, GLOBALPROD, 715147). Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Research Council Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.

The project has a budget of 1,47 million Euro (13 million NOK) and lasts five years, from January 2017 to December 2021.

Norwegian version of this page
Published July 18, 2025 2:45 PM - Last modified Aug. 8, 2025 1:30 PM