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Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production

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  • Pol Antràs

Abstract

I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I also review empirical work suggestive of the empirical relevance of the property-rights theory. Along the way, I develop novel theoretical results and also outline some of the key limitations of existing contributions.

Suggested Citation

  • Pol Antràs, 2011. "Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production," NBER Working Papers 17470, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:17470
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    Cited by:

    1. Alireza Naghavi & Shin-Kun Peng & Yingyi Tsai, 2017. "Relationship-specific Investments and Intellectual Property Rights Enforcement with Heterogeneous Suppliers," Review of International Economics, Wiley Blackwell, vol. 25(3), pages 626-648, August.
    2. Buehler, Stefan & Burghardt, Dirk, 2013. "Globalization and Vertical Structure: An Empirical Investigation," Economics Working Paper Series 1310, University of St. Gallen, School of Economics and Political Science.
    3. Valeria Gattai & Piergiovanna Natale, 2017. "A New Cinderella Story: Joint Ventures And The Property Rights Theory Of The Firm," Journal of Economic Surveys, Wiley Blackwell, vol. 31(1), pages 281-302, February.
    4. Biancini, Sara & Bombarda, Pamela, 2021. "Intellectual property rights, multinational firms and technology transfers," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 191-210.
    5. Pol Antràs & Davin Chor, 2013. "Organizing the Global Value Chain," Econometrica, Econometric Society, vol. 81(6), pages 2127-2204, November.
    6. Klaus Heine & Maximilian Kerk, 2017. "Conflict resolution in meta-organizations: the peculiar role of arbitration," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-20, December.
    7. Blyde, Juan & Molina, Danielken, 2015. "Logistic infrastructure and the international location of fragmented production," Journal of International Economics, Elsevier, vol. 95(2), pages 319-332.
    8. Margherita Scoppola & Margherita Scoppola, 2016. "Foreign Direct Investments and trade in agriculture: an incomplete contracts approach," FOODSECURE Working papers 49, LEI Wageningen UR.
    9. Brunnschweiler, Christa N. & Valente, Simone, 2013. "Property Rights, Oil and Income Levels: Over a Century of Evidence," MPRA Paper 52203, University Library of Munich, Germany.
    10. Cédric Durand & David Flacher & Vincent Frigant, 2018. "Étudier les chaînes globales de valeur comme une forme d’organisation industrielle," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 13-34.
    11. Benjamin Bridgman, 2017. "Market Entry Mode: Evidence From The Golden Age Of Hollywood," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 778-793, April.
    12. Bruno Carballa Smichowski & Cédric Durand & Steven Knauss, 2016. "Uneven development patterns in global value chains," CEPN Working Papers hal-01368948, HAL.
    13. Valeria Gattai & Valentina Trovato, 2014. "Estimating sourcing premia with Italian regional data," Working Papers 276, University of Milano-Bicocca, Department of Economics, revised Jun 2014.
    14. Bian, Bo & Meier, Jean-Marie & Xu, Ting, 2021. "Cross-Border Institutions and the Globalization of Innovation," LawFin Working Paper Series 23, Goethe University, Center for Advanced Studies on the Foundations of Law and Finance (LawFin).
    15. Gattai Valeria & Trovato Valentina, 2016. "Estimating Sourcing Premia Using Italian Regional Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 1029-1067, April.
    16. Marta Bernasconi & Sara Galetti & Valeria Gattai & Piergiovanna Natale, 2022. "Contract Incompleteness and the Boundaries of the Firm in Times of COVID-19," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 371-409, December.
    17. Valeria Gattai & Piergiovanna Natale, 2014. "Joint Ventures and the Property Rights Theory of the Firm: a Review of the Literature," Working Papers 287, University of Milano-Bicocca, Department of Economics, revised Dec 2014.

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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