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Supply Chains and International Cooperation: Thinking Outside the Box

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  • Bernard Hoekman

Abstract

The value of world trade has increased 27-fold since 1950, three time more that the growth of global GDP. An increasing share of that trade involves international supply chains and the global fragmentation of production. But many countries do not participate intensively in this process. One reason is that variety of policies increase supply chain costs and inhibit firms from locating part of their supply chain to a country or region. This paper argues for a new approach by governments and the business community to identify and reduce supply chain barriers, including in the context of international trade agreements. Using trade agreements to lower trade costs that negatively affect the operation of supply networks would help increase their welfare impact and their relevance to business.

Suggested Citation

  • Bernard Hoekman, 2013. "Supply Chains and International Cooperation: Thinking Outside the Box," RSCAS Working Papers PP2013/11, European University Institute.
    • Handle: RePEc:rsc:rsceui:pp2013/11
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    References listed on IDEAS

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    1. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    2. repec:dgr:rugggd:gd-135 is not listed on IDEAS
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    Cited by:

    1. Giovannetti, Giorgia & Marvasi, Enrico, 2016. "Food exporters in global value chains: Evidence from Italy," Food Policy, Elsevier, vol. 59(C), pages 110-125.

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