Skip to main content
x

Incomplete contracts and allocation of residual claim along the global value chains: evidence from Japan

The seminal work by Antras and Chor in 2013 predicted that, under incomplete-contracting environments, the optimal allocation of residual claim for firms participating in global production depends on the relative position at which the supplier enters the sequential production and on the demand elasticity faced by the final-good producer. Using data of Japanese value-added exports, this study empirically verifies this theoretical prediction through supportive evidence.

Type of article
Country
Publication year
2019