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Product Modularity and the Rise of Global Value Chains: Insights from the Electronics Industry

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  • Ari Van Assche
  • Byron Gangnes

Abstract

In the field of economics, a vast literature has attributed the rise of global value chains to globalization-related forces such as declining costs of transportation, improvements in communications technology, and institutional and policy reforms in developing countries. Through an in-depth review of the industry transformation in the electronics industry, however, we find that an additional relatively unexplored factor is the modularization of electronics products. We analyze the mechanisms through which product modularization may lead to the rise of global value chains and discuss the implications for future research.

Suggested Citation

  • Ari Van Assche & Byron Gangnes, 2011. "Product Modularity and the Rise of Global Value Chains: Insights from the Electronics Industry," CIRANO Working Papers 2011s-64, CIRANO.
    • Handle: RePEc:cir:cirwor:2011s-64
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    References listed on IDEAS

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    Cited by:

    1. Monge-González, Ricardo & Zolezzi, Sandro, 2012. "Insertion of Costa Rica in Global Value Chains: A Case Study," IDB Publications (Working Papers) 4256, Inter-American Development Bank.

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    More about this item

    Keywords

    modularity; global value chains; electronics; upgrading;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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