Global Supply Chains: Towards A Computable General Equilibrium Analysis

Prema chandra Athukorala, Peter B. Dixon*, Maureen T. Rimmer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


Economists have analysed GSCs using pure theory, econometrics and input–output calculations. We now need a new type of CGE model to show how GSC trade affects welfare and its distribution between and within nations. The new model must recognise: fragmentation of production; scale economies; intermediate inputs that cross national borders multiple times embodied in products at different stages of completion; and decision-making by global agents. We describe a prototype that incorporates these features and gives interpretable results not attainable with a standard CGE model. We discuss steps to move from the prototype to a policy-relevant model.

Original languageEnglish
Pages (from-to)198-219
Number of pages22
JournalEconomic Papers
Issue number3
Publication statusPublished - Sept 2018


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