ESSAYS ON GLOBAL VALUE CHAINS, POLICIES AND INEQUALITY.

Abstract

This thesis tackles development policy issues that arise when institutions have unequal power. It contributes to three fields: International Political Economy; Industrial Organization; Global Value Chain Analysis. Within this intersection I examine the institutional constraints to economic development created by global markets. I approach this question by mathematically modelling surplus distribution along Global Value Chains to simulate policy measures.It shows that policy interventions can shift surplus shares from developing countries to advanced economies in presence of market power asymmetries. This surplus shift occurs with environmental and labor standards applied in the presence of partially-substitutable goods; and trade-based development policies . The models I develop in these papers provide a framework for further empirical investigation and policies that are better aligned with development goals.