Who Captures Value In Global Supply Chains?
Available statistics tells little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, the authors perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smart phone circa 2007. The phone was assembled in Finland and China. In the case when the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even in the case when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it had rather little role in supplying the physical components.