{
  "title": "The Inflexible Structure of Global Supply Chains",
  "publication": "IMF Working Papers, September 13, 2019",
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  "summary": "The rise of global supply chains has had profound effects on individual economies and the global trading system, thereby complicating standard macroeconomic analyses.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- The production structure is highly inflexible in the short run.\n- Rigidity in global supply chains has, if anything, risen over time as supply chains have deepened.\n- While estimated elasticities rise in the long run, supply chains remain somewhat inflexible.\n- The main results are robust to alternative price measures, including measures that account for the U.S. dollar’s outsized role in trade through invoicing.\n- Implications span cross-country business-cycle dynamics, propagation of sectoral shocks, and measurement of international competitiveness."
    },
    {
      "heading": "Methodology",
      "content": "- A parsimonious, generalized specification is proposed to test the degree of global-supply-chain flexibility.\n- The analysis focuses on how easily global value chains can re-configure in response to changes in prices."
    },
    {
      "heading": "Robustness checks and alternative measures",
      "content": "- Results are tested using alternative price measures.\n- Specific robustness includes price measures that account for the U.S. dollar’s outsized role in trade through invoicing."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Exchange rates, Exports, Foreign exchange, Global value chains, Globalization, Imports, International trade, Real effective exchange rates\n- Keywords: countries trade, error-correction term, Exchange rates, export deflator, export openness, Exports, final-goods export, Global, Global value chains, goods price, Imports, interaction term, price change, Real effective exchange rates, trade invoicing, trade openness, WP\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/09/13/the-inflexible-structure-of-global-supply-chains-48562"
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    "Authors: Tamim Bayoumi, Jelle Barkema",
    "Published: September 13, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513510569.001",
    "The production structure is highly inflexible in the short run.",
    "Rigidity in global supply chains has, if anything, risen over time as supply chains have deepened.",
    "While estimated elasticities rise in the long run, supply chains remain somewhat inflexible.",
    "The main results are robust to alternative price measures, including measures that account for the U.S. dollar’s outsized role in trade through invoicing.",
    "Implications span cross-country business-cycle dynamics, propagation of sectoral shocks, and measurement of international competitiveness.",
    "A parsimonious, generalized specification is proposed to test the degree of global-supply-chain flexibility.",
    "The analysis focuses on how easily global value chains can re-configure in response to changes in prices.",
    "Results are tested using alternative price measures.",
    "Specific robustness includes price measures that account for the U.S. dollar’s outsized role in trade through invoicing.",
    "Subject: Exchange rates, Exports, Foreign exchange, Global value chains, Globalization, Imports, International trade, Real effective exchange rates",
    "Keywords: countries trade, error-correction term, Exchange rates, export deflator, export openness, Exports, final-goods export, Global, Global value chains, goods price, Imports, interaction term, price change, Real effective exchange rates, trade invoicing, trade openness, WP",
    "**Working Paper**"
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