Working Papers

An integral part of global supply chains is the selection by international buyers of trading partners in developing countries. However, understanding of how buyers find a suitable long term supplier is limited.

In spite of extensive trade reforms, markets for goods and services are not fully integrated across countries. Less appreciated also is that product markets within countries are frequently not integrated.

Eber and Malmberg (2016) analyze the interaction of supply chain risk and trade patterns. They construct a model that yields a novel determinant of comparative advantage. In the model, countries with low supply chain risk specialize in risk-sensitive goods.

As China’s economic boom has boosted domestic growth and income, higher wage costs are moving an increasing number of Chinese firms overseas.