Su Wang


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NBER Working Papers and Publications

April 2012Global Supply Chains and Wage Inequality
with Arnaud Costinot, Jonathan Vogel: w17976
A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Arnaud Costinot, Jonathan Vogel and Su Wang (2011), CVW hereafter, we have developed a simple theory of trade with sequential production to shed light on how global supply chains affect the interdependence of nations. In this paper we develop a multi-factor extension of CVW to explore how the emergence of global supply chains may affect wage inequality within countries. Our main theoretical prediction is that the emergence of global supply chains has opposite effects on wage inequality among workers employed at the bottom and the top of these chains. This suggests that the consequences of globaliza...

Published: Arnaud Costinot & Jonathan Vogel & Su Wang, 2012. "Global Supply Chains and Wage Inequality," American Economic Review, American Economic Association, vol. 102(3), pages 396-401, May. citation courtesy of

April 2011An Elementary Theory of Global Supply Chains
with Arnaud Costinot, Jonathan Vogel: w16936
This paper develops an elementary theory of global supply chains. We consider a world economy with an arbitrary number of countries, one factor of production, a continuum of intermediate goods, and one final good. Production of the final good is sequential and subject to mistakes. In the unique free trade equilibrium, countries with lower probabilities of making mistakes at all stages specialize in later stages of production. Because of the sequential nature of production, absolute productivity differences are a source of comparative advantage among nations. Using this simple theoretical framework, we offer a first look at how vertical specialization shapes the interdependence of nations.

Published: Arnaud Costinot & Jonathan Vogel & Su Wang, 2013. "An Elementary Theory of Global Supply Chains," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 109-144. citation courtesy of

January 2003The Growth and Potential of Taiwan's Foreign Trade in Services
with Li-min Hsueh, An-loh Lin
in Trade in Services in the Asia Pacific Region, NBER East Asia Seminar on Economics (EASE), Volume 11, Takatoshi Ito and Anne O. Krueger, editors
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