Geography of Supply Chain 4.0 and Trade Policy
Accounting, finance, sustainability, governance & fraud, 2021
New trade patterns emerge with the changing organization and geography of supply chains under Ind... more New trade patterns emerge with the changing organization and geography of supply chains under Industry 4.0. An eventual shift from Global Value Chains—GVCs is an actual concern for policy makers. This study designates the technical and managerial innovations that are shaping the new supply chain (Supply Chain 4.0) and identifies the forces of geographic agglomeration and dispersion. We feature two leading characteristics of Supply Chain 4.0: a huge amount of data flows and a customer-oriented production. Both of these two imply that the location choices are driven by data-related costs. Producer chooses between to locate closer to “data tower” to profit the scale economies in data analytics or instead, approach to customer. Finally, the form of the conventional bell-curve of Puga (1999) resulting from the trade-off between scale economies of production and transport costs change the form by putting from now on the Win-Win trade between North and South on a knife-edge equilibrium conditional on data frictions. Our research emphasizes that new trade policy takes the form of “data policy” and a joint and mutually benefiting international policy approach is essential for a sustainable trade. In this research, we basically made use of the literature to drive theoretical insights for future work on the geography of Supply Chain 4.0. However, since the limits of Industry 4.0 are not yet clear-cut, we used resources of very different nature (academic, reports, case studies, etc.) and from different disciplines (engineering, managerial sciences, economics).
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Papers by Aycil YUCER