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The Production Life Cycle

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  • Ben G. Li
  • Yibei Liu

Abstract

Tasks in production have different dynamics from individuals products. We build a general equilibrium model where three forces (i.e., offshoring, learning, and wage) interact to determine how production fragmentation evolves over time. We show that the production process follows a life cycle: its fragmentation emerges, deepens, and converges. Our model is stylized and versatile, and it can be used to tractably characterize the loci of global output, productivity, welfare, and value‐added distribution as production fragmentation progresses.

Suggested Citation

  • Ben G. Li & Yibei Liu, 2018. "The Production Life Cycle," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(4), pages 1139-1170, October.
    • Handle: RePEc:bla:scandj:v:120:y:2018:i:4:p:1139-1170
    DOI: 10.1111/sjoe.12255
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    Cited by:

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    8. Jaiswal, Deepak & Kaushal, Vikrant & Kant, Rishi & Kumar Singh, Pankaj, 2021. "Consumer adoption intention for electric vehicles: Insights and evidence from Indian sustainable transportation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
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    10. Blumberg, Timo & Lee, Young Duk & Morosuk, Tatiana & Tsatsaronis, George, 2019. "Exergoenvironmental analysis of methanol production by steam reforming and autothermal reforming of natural gas," Energy, Elsevier, vol. 181(C), pages 1273-1284.
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    13. Yifan Wang & Laurence A. Wright, 2021. "A Comparative Review of Alternative Fuels for the Maritime Sector: Economic, Technology, and Policy Challenges for Clean Energy Implementation," World, MDPI, vol. 2(4), pages 1-26, October.
    14. Ledgard, Stewart F. & Wei, Sha & Wang, Xiaoqin & Falconer, Shelley & Zhang, Nannan & Zhang, Xiying & Ma, Lin, 2019. "Nitrogen and carbon footprints of dairy farm systems in China and New Zealand, as influenced by productivity, feed sources and mitigations," Agricultural Water Management, Elsevier, vol. 213(C), pages 155-163.
    15. Harris, Kylee & Grim, R. Gary & Huang, Zhe & Tao, Ling, 2021. "A comparative techno-economic analysis of renewable methanol synthesis from biomass and CO2: Opportunities and barriers to commercialization," Applied Energy, Elsevier, vol. 303(C).
    16. Ren, Lei & Zhou, Sheng & Peng, Tianduo & Ou, Xunmin, 2021. "A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    17. Rahul Thunuguntla & Amir Mahboubi & Jorge A. Ferreira & Mohammad J. Taherzadeh, 2018. "Integration of Membrane Bioreactors with Edible Filamentous Fungi for Valorization of Expired Milk," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    18. Kim, Dongin & Han, Jeehoon, 2020. "Techno-economic and climate impact analysis of carbon utilization process for methanol production from blast furnace gas over Cu/ZnO/Al2O3 catalyst," Energy, Elsevier, vol. 198(C).

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