IDEAS home Printed from https://ideas.repec.org/p/glh/wpfacu/151.html
   My bibliography  Save this paper

Profit Sharing, Industrial Upgrading, and Global Supply Chains: Theory and Evidence

Author

Listed:
  • Huangnan (Jim) Shen

Abstract

This paper constructed a simple model to illustrate the global supply chain profit sharing and industrial upgrading mechanism, from which it was found that the average profitability distribution in the different supply chain stages was determined by two main factors: (1) the average product of the labor in the firms at each production stage; and (2) the ratio of the output elasticity of capital to the output elasticity of labor in each stage. This paper also proposed a new industrial upgrading mechanism, the ‘inter-supply chain upgrading’, for supply chain firms. Rises in production complexity and increased factor intensity in each production stage were found to be the two essential conditions for the inter-supply chain upgrading. The empirical study results were found to be broadly consistent with the proposed theories.

Suggested Citation

Handle: RePEc:glh:wpfacu:151
as

Download full text from publisher

File URL: https://growthlab.cid.harvard.edu/files/growthlab/files/2020-02-cid-fellows-wp-123-global-supply-chain-revised-may.pdf
Download Restriction: no
---><---

More about this item

Keywords

global supply chain; smile curve; profit sharing mechanism; upgrading mechanism; average product of labor; inter-supply chain upgrading; factor intensity;
All these keywords.

JEL classification:

  • F1 - International Economics - - Trade
  • D2 - Microeconomics - - Production and Organizations
  • D4 - Microeconomics - - Market Structure, Pricing, and Design

Statistics

Access and download statistics

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:glh:wpfacu:151. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chuck McKenney (email available below). General contact details of provider: https://growthlab.hks.harvard.edu/ .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.