GVCs and Trade Elasticities with Multistage Production

We thank Lorenzo Caliendo, Thibault Fally, Kjetil Storesletten, and Kei-Mu Yi for helpful comments, as well as seminar participants at Dartmouth College, the Einaudi Institute for Economics and Finance, Purdue University, the University of Colorado, the University of Michigan, the University of Oslo, the World Bank, the 2012 Philadelphia Federal Reserve Trade Workshop, the 2013 ASSA/AEA Meetings, the 2013 NBER ITI Spring Meetings, the 2013 Rocky Mountain Empirical Trade Conference, the 2013 Barcelona GSE Summer Forum, and the 2014 ECARES/CAGE/CEPR Conference on Global Fragmentation and Trade Policy. This paper previously circulated under the title: “Technology, Trade Costs, and the Pattern of Trade with Multistage Production.” The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.