Global value chains and unequal exchange: Market power and monopoly power

Arbeitspapier

We revisit the hypotheses of unequal exchange and deterioratingterms of trade in the specific context of import-intensive, export-led strategies of developing countries which rely on integration intoGVCs for access to markets in developed countries using a stylizedtwo-country two-commodity Classical- Marxian trade model. Twosources of asymmetry can be distinguished: market power arisingfrom the competition between suppliers that depresses the prices atwhich the final good is supplied; and monopoly power arising fromthe lead firms control and ownership of intangible assets includingbrand and design. The model explores some implications of thesetwo sources of asymmetry.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2021-13

Classification and Topics

• Classification: Wirtschaft ; International Economic Order and Integration ; Multinational Firms; International Business ; International Linkages to Development; Role of International Organizations
• Subject: Unequal Exchange ; Global Value Chains ; Classical TradeModel

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Basu, Deepankar ; Vasudevan, Ramaa
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2021

Further information

• DOI: doi:10.7275/23745731
• Handle: http://hdl.handle.net/10419/238161
• Last update: 10.03.2025, 11:44 AM CET