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Thesis

English

ID: <

10670/1.knh8aj

>

Where these data come from
Value chains, protection, immigration and business services : four essays on globalization

Abstract

This thesis studies different aspects of international trade in a world where production is realized in international networks, differently known as global value chains (GVCs). Topics such as shaping and implications of trade policy, the redistribution effects of trade in presence of labor mobility and the role of trade in services are considered. To that end, several databases and empirical methods are used, based on theoretical mechanisms. As countries are interlinked in GVCs, the effect of trade policy in a part of the production chain might have implications for other producers belonging to the same chain. The first chapter delves into the effect of cumulative input tariffs along supply chains on total value added creation in a given sector of downstream users. Matching information from the World Input-Output Database (WIOD) with tariff data from Market Access Map (MAcMap) and following Miroudot and Rouzet (2013) for the computation of cumulative input tariffs, results show that lowering tariffs in the upstream part of the production chain has a positive spillover effect on the domestic value added (DVA) creation of downstream producers. Nevertheless, this effect is attenuated when tariff accumulation takes place in long chains of production or for countries that contribute with low-value added tasks, such as developing economies. This work points out the importance of considering vertical linkages when shaping trade policy. The second chapter maps information from the Global Trade Alert (GTA) database on regulatory obstacles to public procurement alongside international trade flows at the country-pair product level, world input-output tables and applied bilateral tariffs. Findings show that the main foreign providers are not the most targeted, suggesting long-term relationships between buyers and sellers in public markets. We show that the fear of retaliation is alleviating the protectionist pressure in the importer country. Finally, we document substitutability between public procurement restrictions and tariffs. Results also confirm that GVCs are not shaping restrictive procurement policies beyond what is directly observable in the gross value of purchased products. The third chapter of this thesis investigates the link between East-West migration flows in Europe and global value chains. Indeed, the European integrations of 2004 and 2007 led to both trade and migration shocks in Europe. However, while trade was liberalized instantly, the full implementation of labor mobility freedom was staggered across countries. Combining data from the European Labour Force Survey (LFS) with the World Input-Output Database, this chapter provides evidence of substitution between employing immigrant workers and production offshoring in Europe after the EU enlargement of 2004. This work is among the first to look into the effect of the removal of freedom of movement restrictions in Europe on global value chains. Finally, the last chapter uses micro-level information from Complementary Survey on International Trade in Services (ECEIS) merged with French Custom data and balance sheet information from FiBen provided by Bank of France to understand the implications of services production decisions (i.e. outsourcing or intra-group trade) for French firms. In other words, this chapter aims to shed light on the role of services and their sourcing mode on performance of French firms.

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