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The Production Life Cycle

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  • Ben G. Li
  • Yibei Liu

Abstract

Tasks in production have different dynamics from individuals products. We build a general equilibrium model where three forces (i.e., offshoring, learning, and wage) interact to determine how production fragmentation evolves over time. We show that the production process follows a life cycle: its fragmentation emerges, deepens, and converges. Our model is stylized and versatile, and it can be used to tractably characterize the loci of global output, productivity, welfare, and value‐added distribution as production fragmentation progresses.

Suggested Citation

  • Ben G. Li & Yibei Liu, 2018. "The Production Life Cycle," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(4), pages 1139-1170, October.
    • Handle: RePEc:bla:scandj:v:120:y:2018:i:4:p:1139-1170
    DOI: 10.1111/sjoe.12255
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    Cited by:

    1. Fally, Thibault & Hillberry, Russell, 2018. "A Coasian model of international production chains," Journal of International Economics, Elsevier, vol. 114(C), pages 299-315.
    2. Juan Manuel Madrid-Solórzano & Jorge Luis García-Alcaraz & Eduardo Martínez Cámara & Julio Blanco Fernández & Emilio Jiménez Macías, 2022. "Sustainable Industrial Sotol Production in Mexico—A Life Cycle Assessment," Agriculture, MDPI, vol. 12(12), pages 1-12, December.
    3. Yan Li & Guoshun Wang & Zhaohao Li & Jiahai Yuan & Dan Gao & Heng Zhang, 2020. "A Life Cycle Analysis of Deploying Coking Technology to Utilize Low-Rank Coal in China," Sustainability, MDPI, vol. 12(12), pages 1-17, June.
    4. Zhang, Yueling & Li, Junjie & Yang, Xiaoxiao, 2021. "Comprehensive competitiveness assessment of four coal-to-liquid routes and conventional oil refining route in China," Energy, Elsevier, vol. 235(C).
    5. Isabel García Gutiérrez & Daniel Elduque & Carmelo Pina & Rafael Tobajas & Carlos Javierre, 2020. "Influence of the Composition on the Environmental Impact of a Casting Magnesium Alloy," Sustainability, MDPI, vol. 12(24), pages 1-20, December.
    6. Ledgard, Stewart F. & Wei, Sha & Wang, Xiaoqin & Falconer, Shelley & Zhang, Nannan & Zhang, Xiying & Ma, Lin, 2019. "Nitrogen and carbon footprints of dairy farm systems in China and New Zealand, as influenced by productivity, feed sources and mitigations," Agricultural Water Management, Elsevier, vol. 213(C), pages 155-163.
    7. Li, Jiaxuan & Zhu, Xun & Djilali, Ned & Yang, Yang & Ye, Dingding & Chen, Rong & Liao, Qiang, 2022. "Comparative well-to-pump assessment of fueling pathways for zero-carbon transportation in China: Hydrogen economy or methanol economy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    8. Liu, Yigang & Li, Guoxuan & Chen, Zhengrun & Shen, Yuanyuan & Zhang, Hongru & Wang, Shuai & Qi, Jianguang & Zhu, Zhaoyou & Wang, Yinglong & Gao, Jun, 2020. "Comprehensive analysis of environmental impacts and energy consumption of biomass-to-methanol and coal-to-methanol via life cycle assessment," Energy, Elsevier, vol. 204(C).
    9. Szymczak, Sabina, 2024. "The impact of global value chains on wages, employment, and productivity: a survey of theoretical approaches," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-9.
    10. Xiang, Dong & Huang, Weiqing & Huang, Peng, 2018. "A novel coke-oven gas-to-natural gas and hydrogen process by integrating chemical looping hydrogen with methanation," Energy, Elsevier, vol. 165(PB), pages 1024-1033.
    11. Iddio, E. & Wang, L. & Thomas, Y. & McMorrow, G. & Denzer, A., 2020. "Energy efficient operation and modeling for greenhouses: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    12. Jaiswal, Deepak & Kaushal, Vikrant & Kant, Rishi & Kumar Singh, Pankaj, 2021. "Consumer adoption intention for electric vehicles: Insights and evidence from Indian sustainable transportation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    13. Sabina Szymczak, 2023. "Systematic literature review: theory on GVCs' impact on wages, employment, and productivity," GUT FME Working Paper Series A 71, Faculty of Management and Economics, Gdansk University of Technology.
    14. Blumberg, Timo & Lee, Young Duk & Morosuk, Tatiana & Tsatsaronis, George, 2019. "Exergoenvironmental analysis of methanol production by steam reforming and autothermal reforming of natural gas," Energy, Elsevier, vol. 181(C), pages 1273-1284.
    15. Yifan Wang & Laurence A. Wright, 2021. "A Comparative Review of Alternative Fuels for the Maritime Sector: Economic, Technology, and Policy Challenges for Clean Energy Implementation," World, MDPI, vol. 2(4), pages 1-26, October.
    16. Harris, Kylee & Grim, R. Gary & Huang, Zhe & Tao, Ling, 2021. "A comparative techno-economic analysis of renewable methanol synthesis from biomass and CO2: Opportunities and barriers to commercialization," Applied Energy, Elsevier, vol. 303(C).
    17. Ren, Lei & Zhou, Sheng & Peng, Tianduo & Ou, Xunmin, 2021. "A review of CO2 emissions reduction technologies and low-carbon development in the iron and steel industry focusing on China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    18. Rahul Thunuguntla & Amir Mahboubi & Jorge A. Ferreira & Mohammad J. Taherzadeh, 2018. "Integration of Membrane Bioreactors with Edible Filamentous Fungi for Valorization of Expired Milk," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    19. Kim, Dongin & Han, Jeehoon, 2020. "Techno-economic and climate impact analysis of carbon utilization process for methanol production from blast furnace gas over Cu/ZnO/Al2O3 catalyst," Energy, Elsevier, vol. 198(C).

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