Objective
The growing fragmentation of production across firms and countries has revolutionized international trade in recent decades. Firms today choose which production stages to conduct themselves and which to outsource to other parties, which to complete at home and which to offshore abroad. Known as global value chains (GVCs), this phenomenon creates new challenges and opportunities for individual firms and aggregate economies. Of primary policy interest are the implications of GVCs for growth, the transmission of shocks across firms and borders, and the design of economic policies. Yet academic research has faced two major challenges: poor measurement and poorly understood mechanisms.
I propose an ambitious research program that will use exceptional new data and novel GVC measures for path-breaking GVC analysis. First, I will exploit unique panel data on firm production, management practices, export and import transactions for the world’s two largest export economies, China and the US; and unique panel data on firm production, export and import transactions, and the network of domestic firm-to-firm transactions for one of the most open economies, Belgium. Second, I will develop measures that comprehensively characterize three dimensions of firms’ GVC activity: value added (total/domestic/foreign), production line position (upstreamness), and network position (centrality). Third, I will empirically and theoretically examine the impact of GVCs on firm growth, shock transmission, and export-finance policy through six synergistic projects. Each project will make a distinct contribution by investigating new economic mechanisms, establishing new empirical facts, and combining theory and data for informative welfare calculations.
The novelty of the data and the complex mechanisms driving GVCs make this research program highly ambitious. At the same time, the importance of understanding GVCs for economic policy and academic research make this agenda extraordinarily high-return.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
ERC-COG - Consolidator Grant
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2016-COG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
WC1E 6BT LONDON
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.