Economic globalization and inequality are spreading fast
sparking interest in global value chains among both academics and policy makers
For decades, the Heckscher-Ohlin model was the only method for understanding these phenomena
Conflicting empirical evidence has led to a surge of theoretical models describing international trade scenarios
This disjointed knowledge has made navigating the economic literature a difficult task
Now, a new visual tool could help even non-specialists piece all of the evidence together in one place
Using simple supply and demand diagrams, this tool offers unprecedented explanatory power
Making it quick and easy for professionals and students alike to spot where popular models overlap or vary
While it currently covers only neoclassical trade models...
This figure is a powerful tool that could be used by virtually anyone to understand the effects of global value chains on inequality
Franssen, L. (2019). "Global value chains and relative labour demand: A geometric synthesis of neoclassical trade models." Journal of Economic Surveys