Loading...
Global Value Chains and Unequal Exchange: Market Power and Monopoly Power
Citations
Altmetric:
Abstract
We revisit the hypotheses of unequal exchange and deteriorating terms of trade in the specific context of import-intensive, export- led strategies of developing countries which rely on integration into GVCs for access to markets in developed countries using a stylized two-country two-commodity Classical- Marxian trade model. Two sources of asymmetry can be distinguished: market power arising from the competition between suppliers that depresses the prices at which the final good is supplied; and monopoly power arising from the lead firms control and ownership of intangible assets including brand and design. The model explores some implications of these two sources of asymmetry.
Type
Working Paper
Date
2021
Publisher
Degree
Advisors
License
UMass Amherst Open Access Policy