Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

 

 

 

From Materials Flow and Sustainability

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Key Terms:

  • MFA (Material Flow Analysis)
  • MFCA (Material Flow Cost Accounting)
  • LCA (Life Cycle Analysis)
  • SFA (Substance Flow Analysis)
  • MF WIO (Material Flow Waste Input Output)
  • IO LCA (Input Output Life Cycle Analysis)
  • KLEM (Capital, Labor, Energy, Materials)
  • PIOT ( Physical Input Output Tables)
  • MIOT (Monetary Input Output Tables)
  • IO MFN (Input Output Material Flow Network)
  • Social Ecology
  • Industrial Ecology
  • Urban Metabolism
  • Industrial Symbiosis
  • Industrial Metabolism
  • M-P Chains (Material Product Chains)
  • Global Value Chains
  • National Footprint Accounts
  • Inter Industry Analysis
  • Input Output Economics
  • End to End Supply Chains
  • Supply and Use Tables
  • Material Balance
  • Mass Balance
  • Biophysical Economics
  • Ecological Economics
  • Environmentally Extended Input Output Analysis (EE-IOA)
  • Stocks and Flows
  • MaTrace
  • Global MaTrace

 

Software for Data Analysis and Visualization:

 

This article lists several other software packages for MFA/SFA

https://www.azavea.com/blog/2017/08/09/six-sankey-diagram-tool/

 

 

Material Flow Analysis

From Practical Handbook of MATERIAL FLOW ANALYSIS

Material flow analysis (MFA) is a systematic assessment of the flows and stocks of materials within a system defined in space and time. It connects the sources, the pathways, and the intermediate and final sinks of a material. Because of the law of the conservation of matter, the results of an MFA can be controlled by a simple material balance comparing all inputs, stocks, and outputs of a process. It is this distinct characteristic of MFA that makes the method attractive as a decision-support tool in resource management, waste management, and environmental management.

An MFA delivers a complete and consistent set of information about all flows and stocks of a particular material within a system. Through balancing inputs and outputs, the flows of wastes and environmental loadings become visible, and their sources can be identified. The depletion or accumulation of material stocks is identified early enough either to take countermeasures or to promote further buildup and future utilization. Moreover, minor changes that are too small to be measured in short time scales but that could slowly lead to long-term damage also become evident.

Anthropogenic systems consist of more than material flows and stocks (Figure 1.1). Energy, space, information, and socioeconomic issues must also be included if the anthroposphere is to be managed in a responsible way. MFA can be performed without considering these aspects, but in most cases, these other factors are needed to interpret and make use of the MFA results. Thus, MFA is frequently coupled with the analysis of energy, economy, urban planning, and the like.

In the 20th century, MFA concepts have emerged in various fields of study at different times. Before the term MFA had been invented, and before its comprehensive methodology had been developed, many researchers used the law of conservation of matter to balance processes. In process and chemical engineering, it was common practice to analyze and balance inputs and outputs of chemical reactions. In the economics field, Leontief introduced input–output tables in the 1930s, thus laying the base for widespread application of input–output methods to solve economic problems. The first studies in the fields of resource conservation and environmental management appeared in the 1970s. The two original areas of application were (1) the metabolism of cities and (2) the analysis of pollutant pathways in regions such as watersheds or urban areas. In the following decades, MFA became a widespread tool in many fields, including process control, waste and wastewater treatment, agricultural nutrient management, water-quality management, resource conservation and recovery, product design, life cycle assessment (LCA), and others.

 

Substance Flow Analysis

From Feasibility assessment of using the substance flow analysis methodology for chemicals information at macro level

SFA is used for tracing the flow of a selected chemical (or group of substances) through a defined system. SFA is a specific type of MFA tool, dealing only with the analysis of flows of chemicals of special interest (Udo de Haes et al., 1997). SFA can be defined as a detailed level application of the basic MFA concept tracing the flow of selected chemical substances or compounds — e.g. heavy metals (mercury (Hg), lead (Pb), etc.), nitrogen (N), phosphorous (P), persistent organic substances, such as PCBs, etc. — through society.

An SFA identifies these entry points and quantifies how much of and where the selected substance is released. Policy measures may address these entry points, e.g. by end‐of‐pipe technologies. Its general aim is to identify the most effective intervention points for policies of pollution prevention. According to Femia and Moll (2005), SFA aims to answer the following questions:

• Where and how much of substance X flows through a given system?

• How much of substance X flows to wastes?
• Where do flows of substance X end up?
• How much of substance X is stored in durable goods?
• Where could substance X be more efficiently utilised in technical processes?
• What are the options for substituting the harmful substance?
• Where do substances end up once they are released into the natural environment?

When an SFA is to be carried out, it involves the identification and collection of data on the one hand, and modelling on the other. According to van der Voet et al. (OECD, 2000), there are three possible ways to ‘model’ the system:

Accounting (or bookkeeping) The input for such a system is the data that can be obtained from trade and production statistics. If necessary, further detailed data can be recovered on the contents of the specific substances in those recorded goods and materials. Emissions and environmental fluxes or concentration monitoring can be used for assessing the environmental flows. The accounting overview may also serve as an identification system for missing or inaccurate data.

Missing amounts can be estimated by applying the mass balance principle. In this way, inflows and outflows are balanced for every node, as well as for the system as a whole, unless accumulation within the system can be proven. This technique is most commonly used in material flow studies, and can be viewed as a form of descriptive statistics. There are, however, some examples of case studies that specifically address societal stocks, and use these as indicator for possible environmental problems in the future (OECD, 2000).

Static modelling is the process whereby the network of flow nodes is translated into a mathematical ‘language’, i.e. a set of linear equations, describing the flows and accumulations as inter‐dependent. Emission factors and distribution factors over the various outputs for the economic processes and partition coefficients for the environmental compartments can be used as variables in the equations. A limited amount of substance flow accounting data is also required for a solution of the linear equations. However, the modelling outcome is determined largely by the substance distribution patterns.

Static modelling can be extended by including a so‐called origin analysis in which the origins of one specific problematic flow can be traced on several levels. Three levels may be distinguished:

• direct causes derived directly from the nodes balance (e.g one of the direct causes of cadmium (Cd) load in soil is atmospheric deposition);

• economic sectors (or environmental policy target groups) directly responsible for the problem. This is identified by following the path back from node to node to the point of emission (e.g. waste incineration is one of the economic sectors responsible for the cadmium load in soil);

• ultimate origins found by following the path back to the system boundaries (e.g. the extraction, transport, processing and trade of zinc (Zn) ore is one of the ultimate origins of the cadmium load in soil).

Furthermore, the effectiveness of abatement measures can be assessed with static modelling by recording timelines on substances (OECD, 2000).

Dynamic modelling is different to the static SFA model, as it includes substance stocks accumulated in society as well as in various materials and products in households and across the built‐up environments.

For SFA, stocks play an important role in the prediction of future emissions and waste flows of products with a long life span. For example, in the case of societal stocks of PVC, policy makers need to be supplied with information about future PVC outflows. Today’s stocks become tomorrow’s emissions and waste flows. Studies have been carried out on the analysis of accumulated stocks of metals and other persistent toxics in the societal system. Such build‐ups can serve as an ‘early warning’ signal for future emissions and their potential effects, as one day these stocks may become obsolete and recognisably dangerous, e.g. as in the case of asbestos, CFCs, PCBs and mercury in chlor‐alkali cells. As the stocks are discarded, they end up as waste, emissions, factors of risks to environment and population. In some cases, this delay between inflow and outflow can be very long indeed.

Stocks of products no longer in use, but not yet discarded, are also important. These stocks could include: old radios, computers and/or other electronic equipment stored in basements or attics, out‐of‐use pipes still in the ground, obsolete stocks of chemicals no longer produced but still stored, such as lead paints and pesticides. These ‘hibernating stocks’ are likely to be very large, according to OECD estimates (2000). Estimating future emissions is a crucial issue if environmental policy makers are to anticipate problems and take timely, effective action. In order to do this, stocks cannot be ignored. Therefore, when using MFA or SFA models for forecasting, stocks should play a vital part. Flows and stocks interact with each other. Stocks grow when the inflows exceed the outflows of a (sub)‐system and certain outflows of a (sub)‐system are disproportional to the stocks.

For this dynamic model, additional information is needed for the time dimension of the variables, e.g. the life span of applications in the economy; the half life of compounds; the retention time in environmental compartments and so forth. Calculations can be made not only on the ‘intrinsic’ effectiveness of packages of measures, but also on their anticipated effects in a specific year in the future. They can also be made on the time
it takes for such measures to become effective. A dynamic model is therefore most suitable for scenario analysis, provided that the required data are available or can be estimated with adequate accuracy (OECD, 2000).

 

Life Cycle Analysis (LCA)

 

What is Life Cycle Assessment (LCA)?

As environmental awareness increases, industries and businesses are assessing how their activities affect the environment. Society has become concerned about the issues of natural resource depletion and environmental degradation. Many businesses have responded to this awareness by providing “greener” products and using “greener” processes. The environmental performance of products and processes has become a key issue, which is why some companies are investigating ways to minimize their effects on the environment. Many companies have found it advantageous to explore ways of moving beyond compliance using pollution prevention strategies and environmental management systems to improve their environmental performance. One such tool is LCA. This concept considers the entire life cycle of a product (Curran 1996).

Life cycle assessment is a “cradle-to-grave” approach for assessing industrial systems. “Cradle-to-grave” begins with the gathering of raw materials from the earth to create the product and ends at the point when all materials are returned to the earth. LCA evaluates all stages of a product’s life from the perspective that they are interdependent, meaning that one operation leads to the next. LCA enables the estimation of the cumulative environmental impacts resulting from all stages in the product life cycle, often including impacts not considered in more traditional analyses (e.g., raw material extraction, material transportation, ultimate product disposal, etc.). By including the impacts throughout the product life cycle, LCA provides a comprehensive view of the environmental aspects of the product or process and a more accurate picture of the true environmental trade-offs in product and process selection.

The term “life cycle” refers to the major activities in the course of the product’s life-span from its manufacture, use, and maintenance, to its final disposal, including the raw material acquisition required to manufacture the product. Exhibit 1-1 illustrates the possible life cycle stages that can be considered in an LCA and the typical inputs/outputs measured.

 

Methods of LCA

  • Process LCA
  • Economic Input Output LCA
  • Hybrid Approach

 

 

From Life cycle analysis (LCA) and sustainability assessment

 

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Material Input Output Network Analysis

  • PIOT (Physical Input Output Tables)
  • MIOT (Monetary Input Output Tables)
  • WIOT (Waste Input Output Tables
  • MRIO (Multi Regional Input Output)
  • SUT (Supply and Use Tables)

 

From Industrial ecology and input-output economics: An introduction

Although it was the pioneering contributions by Duchin (1990, 1992) that explicitly made the link between input–output economics and industrial ecology, developments in input– output economics had previously touched upon the core concept of industrial ecology.

Wassily Leontief himself incorporated key ideas of industrial ecology into an input– output framework. Leontief (1970) and Leontief and Ford (1972) proposed a model where the generation and the abatement of pollution are explicitly dealt with within an extended IO framework. This model, which combines both physical and monetary units in a single coefficient matrix, shows how pollutants generated by industries are treated by so-called ‘pollution abatement sectors.’ Although the model has been a subject of longstanding methodological discussions (Flick, 1974; Leontief, 1974; Lee, 1982), its structure captures the essence of industrial ecology concerns: abatement of environmental problems by exploiting inter-industry interactions. As a general framework, we believe that the model by Leontief (1970) and Leontief and Ford (1972) deserves credit as an archetype of the various models that have become widely referred to in the field of industrial ecology during the last decade, including mixed-unit IO, waste IO and hybrid Life Cycle Assessment (LCA) models (Duchin, 1990; Konijn et al., 1997; Joshi, 1999; Nakamura and Kondo, 2002; Kagawa et al., 2004; Suh, 2004b). Notably, Duchin (1990) deals with the conversion of wastes to useful products, which is precisely the aim of industrial ecology, and subsequently, as part of a study funded by the first AT&T industrial ecology fellowship program, with the recovery of plastic wastes in particular (Duchin and Lange, 1998). Duchin (1992) clarifies the quantity-price relationships in an input–output model (a theme to which she has repeatedly returned) and draws its implications for industrial ecology, which has traditionally been concerned exclusively with physical quantities.

Duchin and Lange (1994) evaluated the feasibility of the recommendations of the Brundtland Report for achieving sustainable development. For that, they developed an input–output model of the global economy with multiple regions and analyzed the consequences of the Brundtland assumptions about economic development and technological change for future material use and waste generation. Despite substantial improvements in material efficiency and pollution reduction, they found that these could not offset the impact of population growth and the improved standards of living endorsed by the authors of the Brundtland Report.

Another pioneering study that greatly influenced current industrial ecology research was described by Ayres and Kneese (1969) and Kneese et al. (1970), who applied the massbalance principle to the basic input–output structure, enabling a quantitative analysis of resource use and material flows of an economic system. The contribution by Ayres and Kneese is considered the first attempt to describe the metabolic structure of an economy in terms of mass flows (see Ayres, 1989; Haberl, 2001).

Since the 1990s, new work in the areas of economy-wide research about material flows, sometimes based on Physical Input–Output Tables (PIOTs), has propelled this line of research forward in at least four distinct directions: (1) systems conceptualization (Duchin, 1992; Duchin, 2005a); (2) development of methodology (Konijn et al., 1997; Nakamura and Kondo, 2002; Hoekstra, 2003; Suh, 2004c; Giljum et al., 2004; Giljum and Hubacek, 2004; Dietzenbacher, 2005; Dietzenbacher et al., 2005; Weisz and Duchin, 2005); (3) compilation of data (Kratterl and Kratena, 1990; Kratena et al., 1992; Pedersen, 1999; Ariyoshi and Moriguchi, 2003; Bringezu et al., 2003; Stahmer et al., 2003); and (4) applications (Duchin, 1990; Duchin and Lange, 1994, 1998; Hubacek and Giljum, 2003; Kagawa et al., 2004). PIOTs generally use a single unit of mass to describe physical flows among industrial sectors of a national economy. In principle, such PIOTs are capable of satisfying both column-wise and row-wise mass balances, providing a basis for locating materials within a national economy.3 A notable variation in this tradition, although it had long been used in input–output economic studies starting with the work of Leontief, is the mixed-unit IO table. Konijn et al. (1997) analyzed a number of metal flows in the Netherlands using a mixed-unit IO table, and Hoekstra (2003) further improved both the accounting framework and data. Unlike the original PIOTs, mixed-unit IOTs do not assure the existence of column-wise mass-balance, but they make it possible to address more complex questions. Lennox et al. (2004) present the Australian Stocks and Flows Framework (ASFF), where a dynamic IO model is implemented on the basis of a hybrid input–output table. These studies constitute an important pillar of industrial ecology that is generally referred to as Material Flow Analysis (MFA).4

Although the emphasis in industrial ecology has arguably been more on the materials side, energy issues are without doubt also among its major concerns. In this regard, energy input–output analysis must be considered another important pillar for the conceptual basis of ‘industrial energy metabolism.’ The oil shock in the 1970s stimulated extensive research on the structure of energy use, and various studies quantifying the energy associated with individual products were carried out (Berry and Fels, 1973; Chapman, 1974). Wright (1974) utilized Input–Output Analysis (IOA) for energy analysis, which previously had been dominated by process-based analysis (see also Hannon, 1974; Bullard and Herendeen, 1975; Bullard et al., 1978). The two schools of energy analysis, namely process analysis and IO energy analysis, were merged by Bullard and Pillarti (1976) into hybrid energy analysis (see also van Engelenburg et al., 1994; Wilting,1996). Another notable contribution to the area of energy analysis was made by Cleveland et al. (1984), who present a comprehensive analysis, using the US input–output tables, quantifying the interconnection of energy and economic activities from a biophysical standpoint (see Cleveland, 1999; Haberl, 2001; Kagawa and Inamura, 2004). These studies shed light on how an economy is structured by means of energy flows and informs certain approaches to studying climate change (see for example Proops et al., 1993; Wier et al., 2001).

What generally escapes attention in both input–output economics and industrial ecology, despite its relevance for both, is the field of Ecological Network Analysis (ENA). Since Lotka (1925) and Lindeman (1942), material flows and energy flows have been among the central issues in ecology. It was Hannon (1973) who first introduced concepts from input–output economics to analyze the structure of energy utilization in an ecosystem. Using an input–output framework, the complex interactions between trophic levels or ecosystem compartments can be modeled, taking all direct and indirect relationships between components into account. Hannon’s approach was adopted, modified and re-introduced by various ecologists. Finn (1976, 1977), among others, developed a set of analytical measures to characterize the structure of an ecosystem using a rather extensive reformulation of the approach proposed by Hannon (1973). Another important development in the tradition of ENA is so-called environ analysis. Patten (1982) proposed the term ‘environ’ to refer to the relative interdependency between ecosystem components in terms of nutrient or energy flows. Results of environ analysis are generally presented as a comprehensive network flow diagram, which shows the relative magnitudes of material or energy flows between the ecosystem components through direct and indirect relationships (Levine, 1980; Patten, 1982). Ulanowicz and colleagues have broadened the scope of materials and energy flow analysis both conceptually and empirically (Szyrmer and Ulanowicz, 1987). Recently Bailey et al. (2004a, b) made use of the ENA tradition to analyze the flows of several metals through the US economy. Suh (2005) discusses the relationship between ENA and IOA and shows that Patten’s environ analysis is similar to Structural Path Analysis (SPA), and that the ENA framework tends to converge toward the Ghoshian framework rather than the Leontief framework although using a different formalism (Defourny and Thorbecke, 1984; Ghosh, 1958).

 

 

From Materials and energy flows in industry and ecosystem netwoks : life cycle assessment, input-output analysis, material flow analysis, ecological network flow analysis, and their combinations for industrial ecology

 

MFA

 

From Regional distribution and losses of end-of-life steel throughout
multiple product life cycles—Insights from the global multiregional
MaTrace model

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From Feasibility assessment of using the substance flow analysis methodology for chemicals information at macro level

 

mfa2MFA3

 

Sankey Diagram

From Hybrid Sankey diagrams: Visual analysis of multidimensional data for understanding resource use

Sankey diagrams are used to visualise flows of energy, materials or other resources in a variety of applications. Schmidt (2008a) reviewed the history and uses of these diagrams. Originally, they were used to show flows of energy, first in steam engines, more recently for modern systems such as power plants (e.g. Giuffrida et al., 2011) and also to give a big-picture view of global energy use (Cullen and Allwood, 2010). As well as energy, Sankey diagrams are widely used to show flows of resources (Schmidt, 2008a). Recent examples in this journal include global flows of tungsten (Leal-Ayala et al., 2015), biomass in Austria (Kalt, 2015), and the life-cycle of car components (Diener and Tillman, 2016). More widely, they have been used to show global production and use of steel and aluminium (Cullen et al., 2012; Cullen and Allwood, 2013), and flows of natural resources such as water (Curmi et al., 2013). In all of these cases, the essential features are: (1) the diagram represents physical flows, related to a given functional unit or period of time; and (2) the magnitude of flows is shown by the link1 widths, which are proportional to an extensive property of the flow such as mass or energy (Schmidt, 2008b). Creating these diagrams is supported by software tools such as e!Sankey (ifu Hamburg, 2017), and several Life Cycle Assessment (LCA) and Material Flow Analysis (MFA) packages include features to create Sankey diagrams.

 

From Hybrid Sankey diagrams: Visual analysis of multidimensional data for understanding resource use

 

mfa7

 

Please see my related posts:

Wassily Leontief and Input Output Analysis in Economics

Shell Oil’s Scenarios: Strategic Foresight and Scenario Planning for the Future

Water | Food | Energy | Nexus: Mega Trends and Scenarios for the Future

Stock Flow Consistent Input Output Models (SFCIO)

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

Production and Distribution Planning : Strategic, Global, and Integrated

Intra Industry Trade and International Production and Distribution Networks

Trends in Intra Firm Trade of USA

Development of Global Trade and Production Accounts: UN SEIGA Initiative

Accounting For Global Carbon Emission Chains

Stock Flow Consistent Models for Ecological Economics

Jay W. Forrester and System Dynamics

Classical roots of Interdependence in Economics

Stock-Flow Consistent Modeling

 

 

 

 

Key Sources of Research:

SPECIAL SESSION ON MATERIAL FLOW ACCOUNTING

OECD

Paris, 24 October 2000

https://www.oecd.org/env/indicators-modelling-outlooks/4425421.pdf

An Innovative Accounting Framework for the Food-Energy-Water Nexus
Application of the MuSIASEM approach to three case studies

http://www.fao.org/docrep/019/i3468e/i3468e.pdf

Creating your own online data visualizations: SankeyMatic, OMAT, CartoDB

https://metabolismofcities.org/blog/4-creating-your-own-online-data-visualizations

Hybrid Sankey diagrams: Visual analysis of multidimensional data for understanding resource use

https://www.sciencedirect.com/science/article/pii/S0921344917301167

e!Sankey

Visualization of energy, cash and material flows with a Sankey diagram

https://www.ifu.com/en/e-sankey/sankey-diagrams/

UPIOM: A New Tool of MFA and Its Application to the Flow of Iron and Steel Associated with Car Production

https://pubs.acs.org/doi/pdf/10.1021/es1024299

Material flow analysis

WIKIPEDIA

https://en.wikipedia.org/wiki/Material_flow_analysis

Economy-wide Material Flow Accounting. Introduction and Guide.

Version 1.0

Article · January 2015

Fridolin Krausmann, Helga Weisz, Nina Eisenmenger, Helmut Schütz, Willi Haas
and Anke Schaffartzik

https://www.researchgate.net/publication/272885234_Economy-wide_Material_Flow_Accounting_Introduction_and_Guide_Version_10

Society’s Metabolism The Intellectual History of Materials Flow Analysis,

Part II, 1970-1998

Marina Fischer-Kowalski and Walter Huttler

Institute for Intenliscipiimny
Studies of Austrian Universities
University of Vienna
Vienna, Austria

http://www.esf.edu/cue/documents/Fischer-Kowalski_Huttler_1998.pdf

“Society’s Metabolism. The Intellectual History of Material Flow Analysis,

Part I, 1860 – 1970″.

Fischer-Kowalski, M.

1998.

Journal of Industrial Ecology 2(1): 61-78

https://www.researchgate.net/publication/249481665_Society%27s_Metabolism_The_Intellectual_History_of_Materials_Flow_Analysis_Part_I_1860-_1970

Analysis on energy–water nexus by Sankey diagram: the case of Beijing

https://www.tandfonline.com/doi/abs/10.1080/19443994.2013.768038

Unified Materials Information System (UMIS): An Integrated Material Stocks and Flows Data Structure

First published: 07 February 2018

 

https://onlinelibrary.wiley.com/doi/abs/10.1111/jiec.12730

Material Flow Cost Accounting with Umberto®

Schmidt, A. Hache, B.; Herold, F.; Götze, U.

http://qucosa.de/fileadmin/data/qucosa/documents/10523/2-05_Material_Flow_Cost_Accounting.pdf

https://www.wef.uni-osnabrueck.de/wp-content/uploads/PRESENTATIONS/Plenary/WEF_Richards.pdf

Study on Data for a Raw Material System Analysis: Roadmap and Test of the Fully Operational MSA for Raw Materials

Final Report

BIO by Deloitte

(2015)

Prepared for the European Commission, DG GROW.

https://www.certifico.com/component/attachments/download/2886

Integrated Analysis of Energy, Material and Time Flows in Manufacturing Systems

 

https://ac.els-cdn.com/S2212827116305479/1-s2.0-S2212827116305479-main.pdf?_tid=90701061-86fc-4c11-b078-cb577d8f8bdf&acdnat=1525719999_9dcee960cd6033d950a583cea379539f

e! Sankey

Visualization of energy, cash and material flows with a Sankey diagram

The most popular software for creating Sankey diagrams. Visualize the cash, material & energy flow or value streams in your company or along the supply chain. Share these appealing diagrams in reports or presentations.

 

https://www.ifu.com/en/e-sankey/?gclid=CjwKCAjw8r_XBRBkEiwAjWGLlIcWq2pRigMmJLKAXP4-ndFXR9ik41MUp9ahFZL2M9Ht5CKtwKIvTRoCdbsQAvD_BwE

MATERIAL FLOW ANALYSIS WITH SOFTWARE STAN

Oliver Cencic* and Helmut Rechberger
Institute for Water Quality Resources and Waste Management
Vienna University of Technology
Vienna A-1040, Austria

https://www.sswm.info/sites/default/files/reference_attachments/CENCIC%20and%20RECHBERGER%202008%20Material%20Flow%20Analysis%20with%20Software%20STAN.pdf

Recovery of Key Metals in the Electronics Industry in the
People’s Republic of China: An Opportunity in Circularity
(Initial Findings)

January 2018

Created as Part of the Platform for Accelerating the Circular Economy

http://www3.weforum.org/docs/Environment_Team/39777_Recovery_Key_Metals_Electronics_Industry_China_Opportunity_Circularity_report_2018.pdf

Sankey diagram

WIKIPEDIA

https://en.wikipedia.org/wiki/Sankey_diagram

MATERIAL FLOWS IN THE UNITED STATES
A PHYSICAL ACCOUNTING OF THE U.S. INDUSTRIAL ECONOMY

DONALD ROGICH
AMY CASSARA
IDDO WERNICK
MARTA MIRANDA

WRI

http://pdf.wri.org/material_flows_in_the_united_states.pdf

Industrial ecology and input-output economics: An introduction

Sangwon Suh

2005

https://www.researchgate.net/profile/Sangwon_Suh3/publication/24078824_Industrial_ecology_and_input-output_economics_An_introduction/links/0c960531f1d92f3705000000/Industrial-ecology-and-input-output-economics-An-introduction.pdf

A Handbook of Industrial Ecology

Robert Ayres

Leslie Ayres

http://pustaka.unp.ac.id/file/abstrak_kki/EBOOKS/A%20Handbook%20of%20Industrial%20Ecology.pdf#page=100

Physical and Monetary Input-Output Analysis:
What Makes the Difference?

Helga Weisz
Klagenfurt University
Faye Duchin
Rensselaer Polytechnic Institute

https://pdfs.semanticscholar.org/d946/ab5b067aacafe555acbc1e077b5b42e1fc92.pdf

Theory of materials and energy flow analysis in ecology and economics

Sangwon Suh

2005

https://www.researchgate.net/profile/Sangwon_Suh3/publication/227009838_Materials_and_energy_flows_in_industry_and_ecosystem_networks/links/00b7d53595cb006cbb000000/Materials-and-energy-flows-in-industry-and-ecosystem-networks.pdf

Conceptual Foundations and Applications of Physical Input-Output Tables

Stefan Giljum

Hubacek Klaus

2009

https://www.researchgate.net/profile/Hubacek_Klaus/publication/226286172_Conceptual_Foundations_and_Applications_of_Physical_Input-Output_Tables/links/0912f506c16a7d06af000000/Conceptual-Foundations-and-Applications-of-Physical-Input-Output-Tables.pdf

Alternative Approaches of Physical Input-Output Analysis to Estimate
Primary Material Inputs of Production and Consumption Activities

Stefan Giljum

Hubacek Klaus

2004

https://www.researchgate.net/profile/Hubacek_Klaus/publication/24078801_Alternative_Approaches_of_Physical_Input-Output_Analysis_to_Estimate_Primary_Material_Inputs_of_Production_and_Consumption_Activities/links/00b7d51cc1257aba71000000.pdf

Industrial Ecology: A Critical Review

https://nature.berkeley.edu/orourke/PDF/IE.pdf

EXIOPOL – development and illustrative analyses of a detailed global
multiregional environmentally-extended supply and use table/input output
table

Article in Economic Systems Research · May 2013

https://www.researchgate.net/profile/Jan_Oosterhaven/publication/281305069_EXIOPOL_-_development_and_illustrative_analyses_of_a_detailed_global_multiregional_environmentally-extended_supply_and_use_tableinput-output_table/links/561d652a08aecade1acb3bfc.pdf

Developing the Sectoral Environmental Database for Input- Output Analysis: Comprehensive Environmental Data Archive of the U.S.

Article in Economic Systems Research · December 2005

https://www.researchgate.net/profile/Sangwon_Suh3/publication/24078829_Developing_the_Sectoral_Environmental_Database_for_Input-Output_Analysis_Comprehensive_Environmental_Data_Archive_of_the_US/links/0c960531f1d910cda1000000.pdf

The material basis of the global economy

Worldwide patterns of natural resource extraction and their
implications for sustainable resource use policies

Arno Behrens,⁎, Stefan Giljum, Jan Kovanda, Samuel Niza

https://eden.dei.uc.pt/~camara/files/iTEAM/Material_Basis.pdf

The Sankey Diagram in Energy and Material Flow Management

Part I: History

https://onlinelibrary.wiley.com/doi/full/10.1111/j.1530-9290.2008.00004.x

The Sankey Diagram in Energy and Material Flow Management

Part II: Methodology and Current Applications

First published: 28 April 2008

https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1530-9290.2008.00015.x

Material and Energy Flow Analysis

First published: 23 March 2010

https://onlinelibrary.wiley.com/doi/pdf/10.1002/ceat.201090015

8. Biophysical economics: from physiocracy to ecological economics and industrial
ecology

Cutler J Cleveland

Article · January 1999

https://www.researchgate.net/profile/Cutler_Cleveland/publication/229055775_8_Biophysical_economics_from_physiocracy_to_ecological_economics_and_industrial_ecology/links/0deec51b7274ca0035000000.pdf

The Use of Input-Output Analysis in REAP to allocate Ecological Footprints and Material Flows to Final Consumption Categories

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.457.7453&rep=rep1&type=pdf

Waste Input–Output Material Flow Analysis of Metals in the Japanese Economy

Shinichiro Nakamura1 and Kenichi Nakajima2

https://www.jim.or.jp/journal/e/pdf3/46/12/2550.pdf

A multi-regional environmental input-output model to quantify embodied material flows

Stefan Giljum a, Christian Lutz b,Ariane Jungnitz

https://www.iioa.org/conferences/16th/files/Papers/Giljum%20et%20al_IIOA.pdf

http://inforumweb.umd.edu/papers/conferences/2007/jungnitzgiljumlutz.pdf

Material Flow Accounting and Analysis (MFA)

A Valuable Tool for Analyses of Society-Nature Interrelationships

Entry prepared for the Internet Encyclopedia of Ecological Economics

Friedrich Hinterberger *, Stefan Giljum, Mark Hammer

Sustainable Europe Research Institute (SERI)

http://isecoeco.org/pdf/material.pdf

Human Ecology: Industrial Ecology

Faye Duchin
Rensselaer Polytechnic Institute

Stephen H. Levine
Tufts University

http://www.economics.rpi.edu/workingpapers/rpi0603.pdf

Development of the Physical Input Monetary Output Model for Understanding Material Flows within Ecological -Economic Systems

XU Ming

2010

http://www.jorae.cn/fileup/PDF/2010010204.pdf

Accounting for raw material equivalents of traded goods

A comparison of input-output approaches in physical, monetary, and mixed units

https://www.aau.at/wp-content/uploads/2016/11/working-paper-87-web.pdf

Material Flow Accounts and Policy. Data for Sweden 2004

by: Annica Carlsson, Anders Wadeskog, Viveka Palm, Fredrik Kanlén Environmental Accounts, Statistics Sweden,

2006.

http://www.scb.se/statistik/_publikationer/mi1301_2004a01_br_mift0701.pdf

Economy-wide Material Flow Accounts with Hidden Flows for Finland: 1945–2008

Jukka Hoffrén (ed.)

http://www.stat.fi/tup/julkaisut/tiedostot/isbn_978-952-244-233-8.pdf

EXIOBASE
Analysing environmental impacts of the global, interlinked economy

Konstantin Stadler, Richard Wood

Industrial Ecology Programme, NTNU, Norway

2014

http://www.syke.fi/download/noname/%7B3C267869-D6AE-447F-A98D-547C1D2B5819%7D/105511

ESSAYS ON INTERNATIONAL TRADE AND ENVIRONMENT
An Input-Output Analysis

http://repositorio.conicyt.cl/bitstream/handle/10533/179687/MUNOZ_PABLO_2868D.pdf?sequence=1

Using Material Flow Analysis for Sustainable Materials Management: Part of the Equation for Priority Setting

Frederick W. Allen

Priscilla A. Halloran

Angela H. Leith

M. Clare Lindsay

https://digitalcommons.unl.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1113&context=usepapapers

“Supply-Extension versus Use-Extension in Environmentally Extended Input-Output Modelling: Analyzing Physical Flows within the Austrian Economy”

Hanspeter Wieland*1, Nina Eisenmenger2, Dominik Wiedenhofer2, Martin Bruckner1

http://www.gws-os.com/downloads/ioworkshop/IO-Workshop-2017_Wieland_abstract.pdf

A Material Flow Analysis of Phosphorus in Japan
The Iron and Steel Industry as a Major Phosphorus Source

Kazuyo Matsubae-Yokoyama, Hironari Kubo, Kenichi Nakajima,
and Tetsuya Nagasaka

http://greenpi.info/files/articles/gpa_101_wa.pdf

Material Flows and Economic Development
Material Flow Analysis of the Hungarian Economy

http://pure.iiasa.ac.at/id/eprint/6729/1/IR-02-057.pdf

The material footprint of nations

Thomas O. Wiedmanna,b,c,1, Heinz Schandlb,d, Manfred Lenzenc, Daniel Moranc,e, Sangwon Suhf, James Westb, and Keiichiro Kanemotoc

http://www.pnas.org/content/pnas/112/20/6271.full.pdf

Calculation of direct and indirect material inputs by type of raw material and economic activities

Paper presented at the London Group Meeting
19 – 21 June 2006

Karl Schoer

Wiesbaden, July 2006

http://mdgs.un.org/unsd/envaccounting/ceea/archive/MFA/Raw_material_Germany.pdf

Waste Input-Output  (WIO) Table

Shinichiro NAKAMURA and Yasushi KONDO,

Waste Input-Output Analysis: Concepts and Application to Industrial Ecology.

In Series: Eco-Efficiency in Industry and Science,

Vol. 26, Springer, February 2009.

http://www.f.waseda.jp/nakashin/WIO.html

Economy Wide Material Flow Accounting (EW-MFA)

http://data.geus.dk/MICASheetsEditor/document/21e5c517-53b9-4b00-b7a3-55939829824b

Material flow analyses in technosphere and biosphere
– metals, natural resources and chemical products

Viveka Palm

http://www.diva-portal.org/smash/get/diva2:9105/FULLTEXT01.pdf

The UK waste input-output table: Linking waste generation to the UK economy.

Salemdeeb, R., Al-Tabbaa, A. and Reynolds, C.

Waste Management & Research, 34 (10). pp. 1089-1094.

http://eprints.whiterose.ac.uk/105894/13/Re_Main_Document.pdf

Multiregion input / output tables and material footprint accounts session

Discussion of aspects of of MRIO / material footprinting work, and considerations for developing and resource based economies.

James West | Senior experimental scientist
25 May 2016

http://www.switch-asia.eu/fileadmin/user_upload/RPSC/event/23-25May16-Mongolia/24-25May/10_MFand_MRIO_CSIRO_English.pdf

Construction of hybrid Input-Output tables for E3 CGE model calibration and consequences on energy policy analysis

COMBET Emmanuel – CIRED
GHERSI Frédéric – CIRED
LEFEVRE Julien – CIRED
LE TREUT Gaëlle – CIRED

https://www.gtap.agecon.purdue.edu/resources/download/6988.pdf

Prospects and Drivers of Future European Resource Requirements
Evidence from a Multi-National Macroeconomic Simulation Study*

Paper prepared for the final WIOD Conference
Groningen, April 2012
by
Martin Distelkamp, Mark Meyer** and Bernd Meyer

GWS mbH Osnabrueck

http://www.wiod.org/conferences/groningen/Paper_Distelkamp_et_al.pdf

Material Flow Analysis to Evaluate Sustainability in Supply Chains

Haroune Zaghdaoui, Anicia Jaegler, Natacha Gondran, Jairo Montoya-Torres

https://hal-emse.ccsd.cnrs.fr/emse-01633801/file/4189.pdf

Physical and monetary input–output analysis: What makes the difference?

Helga Weisz , Faye Duchin

https://www.peakoil.net/files/Physical%20and%20monetary%20input-output.pdf

Recycling and Remanufacturing in Input-Output Models

Randall W Jackson, West Virginia University
Taelim Choi, Georgia Institute of Technology
Nancey Green Leigh, Georgia Institute of Technology

http://rri.wvu.edu/wp-content/uploads/2012/11/WP2008-4.pdf

The Water Footprint Assessment Manual

http://waterfootprint.org/media/downloads/TheWaterFootprintAssessmentManual_2.pdf

The New Plastics Economy
Rethinking the future of plastics

http://www3.weforum.org/docs/WEF_The_New_Plastics_Economy.pdf

A Comparison of Environmental Extended Input-Output (EEIO) and Process Data in Life Cycle Assessment

https://www.climateearth.com/wp-content/uploads/2017/06/Comparing-Input-Output-and-Process-LCA-Data.CE-form2-LM-edits.pdf

Managing Logistics Flows Through Enterprise Input-Output Models

V. Albino1, A. Messeni Petruzzelli1 and O. G. Okogbaa2

http://cdn.intechopen.com/pdfs/6161/InTech-Managing_logistics_flows_through_enterprise_input_output_models.pdf

Social Metabolism and Accounting Approaches

Module:ECOLECON

Ecological economics

https://proxy.eplanete.net/galleries/broceliande7/social-metabolism-and-accounting-approaches

Input-Output Analysis in Laptop Computer Manufacturing

https://waset.org/publications/9998422/input-output-analysis-in-laptop-computer-manufacturing

IRON, STEEL AND ALUMINIUM IN THE UK: MATERIAL FLOWS AND THEIR
ECONOMIC DIMENSIONS

Final Project Report, March 2004

https://www.surrey.ac.uk/ces/files/pdf/0304_WP_Biffaward_Steel_Al-Final.pdf

A Framework for Sustainable Materials Management

Joseph Fiksel

http://www.eco-nomics.com/images/Framework_for_SMM.pdf

Energy and water conservation synergy in China: 2007–2012

Yi Jina, Xu Tanga,⁎, Cuiyang Fenga, Mikael Höökb

https://www.researchgate.net/profile/Yi_Jin51/publication/320073178_Energy_and_water_conservation_synergy_in_China_2007-2012/links/59cc5c13a6fdcc451d5cf2b5/Energy-and-water-conservation-synergy-in-China-2007-2012.pdf

Contributions of Material and Energy Flow Accounting to Urban Ecosystems Analysis: Case Study Singapore

Niels B. Schulz

http://archive.unu.edu/hq/library/Collection/PDF_files/IAS/IAS-WP136.pdf

A review of recent multi-region input–output models used for consumption-based
emission and resource accounting

Thomas Wiedmann

http://wedocs.unep.org/bitstream/handle/20.500.11822/19433/a_review.pdf?sequence=1&isAllowed=y

Physical Input Output (PIOT) Tables:  Developments and Future

http://iioa.org/conferences/18th/papers/files/35_20100427111_Hoekstra-PIOT.pdf

Materials and energy flows in industry and ecosystem netwoks : life cycle assessment, input-output analysis, material flow analysis, ecological network flow analysis, and their combinations for industrial ecology

Suh, S,

2004

https://openaccess.leidenuniv.nl/handle/1887/8399

Applying Ecological Input‐Output Flow Analysis to Material Flows in Industrial Systems: Part I: Tracing Flows

First published: 08 February 2008

Applying Ecological Input‐Output Flow Analysis to Material Flows in Industrial Systems: Part II: Flow Metrics

First published: 08 February 2008

Local systems, global impacts
Using life cycle assessment to analyse the
potential and constraints of industrial symbioses

rising to global challenges

25 Years of Industrial Ecology

 https://is4ie.org/resources/documents/4/download

Literature study on Industrial Ecology

Gerard Fernandez Gonzalez

 

https://upcommons.upc.edu/bitstream/handle/2117/77035/Final%20version%20-%20Document.pdf?sequence=1&isAllowed=y

 

 

 

 

 

Practical Handbook of MATERIAL FLOW ANALYSIS

Paul H. Brunner and Helmut Rechberger

Handbook of Input-Output Economics in Industrial Ecology


 
edited by Sangwon Suh

Taking Stock of Industrial Ecology

edited by Roland Clift, Angela Druckman

Ecological Input-Output Analysis-Based Sustainability Analysis of Industrial Systems

 

Cristina Piluso and Yinlun Huang*

 

Helen H. Lou

An Extended Model for Tracking Accumulation Pathways of Materials Using Input–Output Tables: Application to Copper Flows in Japan

Ryosuke Yokoi * ID , Jun Nakatani ID and Yuichi Moriguchi
2008

TRACING MATERIAL FLOWS ON INDUSTRIAL SITES

Kálmán KÓSI and András TORMA
2005

 

 

 

Metabolism of Cities

 

https://metabolismofcities.org

 

 

 

 

 

Feasibility assessment of using the substance flow analysis methodology for chemicals information at macro level

 

https://www.eea.europa.eu/publications/technical_report_2007_1/file

 

 

 

Structural Investigation of Aluminum in the US Economy using Network Analysis

Philip Nuss, Wei-Qiang Chen Hajime Ohno, and T.E. Graedel

 

http://philip.nuss.me/wp-content/uploads/2016_SA_Network-Analysis-Aluminum_EST.pdf

 

 

 

 

Economy-wide Material Flow Analysis and Indicators

http://www.umweltgesamtrechnung.at/ms/ugr/ugr_en/ugr_physicalaccounts/ugr_materialflowaccounts/

 

 

 

 

Regional distribution and losses of end-of-life steel throughout
multiple product life cycles—Insights from the global multiregional
MaTrace model

 

Stefan Pauliuka,∗, Yasushi Kondob, Shinichiro Nakamurab, Kenichi Nakajimac

 

https://ac.els-cdn.com/S0921344916302774/1-s2.0-S0921344916302774-main.pdf?_tid=838ffb90-95a9-4f3a-a617-f619f32d4558&acdnat=1531385937_3f722f2c2f71337c47a1024b0c841d16

 

 

 

 

MaTrace: Tracing the Fate of Materials over Time and Across Products in Open-Loop Recycling

Shinichiro Nakamura,*,† Yasushi Kondo,† Shigemi Kagawa,‡ Kazuyo Matsubae,§ Kenichi Nakajima,⊥ and Tetsuya Nagasaka§

https://pubs.acs.org/doi/pdf/10.1021/es500820h

 

 

 

 

 

Tracing China’s energy flow and carbon dioxide flow based on Sankey diagrams

 

Feiyin Wang1,2 • Pengtao Wang1,2 • Xiaomeng Xu1,2 • Lihui Dong1,2 • Honglai Xue1,2 • Shuai Fu1,2 • Yingxu Ji

 

https://www.researchgate.net/profile/Xiaomeng_Xu7/publication/318642022_Tracing_China%27s_energy_flow_and_carbon_dioxide_flow_based_on_Sankey_diagrams/links/5a59cd7f458515450270f982/Tracing-Chinas-energy-flow-and-carbon-dioxide-flow-based-on-Sankey-diagrams.pdf

 

 

 

 

Materials Flow and Sustainability

USGS

 

 

 

Life-cycle assessment

https://en.wikipedia.org/wiki/Life-cycle_assessment

 

 

 

 

LIFE CYCLE ASSESSMENT: PRINCIPLES AND PRACTICE

Scientific Applications International Corporation (SAIC) 11251 Roger Bacon Drive
Reston, VA 20190

 

http://www.epa.gov/nrmrl/lcaccess/pdfs/chapter1_frontmatter_lca101.pdf

 

 

 

 

Life cycle analysis (LCA) and sustainability assessment

 

http://www4.ncsu.edu/~richardv/documents/IntroductiontoLCAAU32013.pdf

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Credit Chains and Production Networks

Credit Chains and Production Networks

There are three kind of flows in a Supply Chain

  • Goods
  • Information
  • Financial

 

Credit Terms in a Supplier Buyer contracts determine payment delays which accumulate in current accounts of a Firm.

  • Account Receivables
  • Account Payables

 

Credit Relations

  • Bank to Bank
  • Bank to Firm
  • Firm to Firm

Dyad of Credit Relations

  • Supplier – Buyer

 

Triad of Credit Relations

  • Supplier – Bank – Buyer

Sources of Systemic Risk

  • Failure of a Firm and its impact on Suppliers and Customers (Flow of Goods)
  • Failure of a Bank and its impact on Trade Credit
  • Credit Contraction due to de-risking by the Banks
  • Decline in Correspondent Banking relations and its impact on Trade Finance

 

From Credit Chains and Sectoral Co-movement: Does the Use of Trade
Credit Amplify Sectoral Shocks?

Trade credit is an important source of short-term financing for firms, not only in the U.S., as documented by Petersen and Rajan (1997), but also around the World. For instance, accounts payables are larger than short-term debt in 60 percent of the countries covered by Worldscope. Also, across the world most firms simultaneously receive credit from their suppliers and grant it to their customers, which tend to be concentrated on specific sectors.  These characteristics of trade credit financing have led some authors to propose it as a mechanism for the propagation and amplification of idiosyncratic shocks. The intuition behind the mechanism is straightforward; a firm that faces a default by its customers may run into liquidity problems that force it to default to its own suppliers. Therefore, in a network of firms that borrow from each other, a temporary shock to the liquidity of some firms may cause a chain reaction in which other firms also get in financial difficulties, thus resulting in a large and persistent decline in aggregate activity. This idea was first formalized by Kiyotaki and Moore (1997) in a partial equilibrium setting, and has been recently extended to a general equilibrium environment by Cardoso-Lecourtois (2004), and Boissay (2006) who have also provided evidence of the potential quantitative importance of the mechanism by calibrating their models to the cases of Mexico and the U.S., respectively.

From Ontology of Bankruptcy Diffusion through Trade Credit
Channel

A supply network is a network of entities interacting to transform raw material into finished product for customers. Since interdependencies among supply network members on material, information, and finance are becoming increasingly intensive, financial status of one firm not only depends on its own management, but also on the performance and behaviours of other members. Therefore, understanding the financial flows variability and the material interactions is a key to quantify the risk of a firm. Due to the complex structure and dynamic interactions of modern supply networks, there are some difficulties faced by pure analysis approaches in analyzing financial status of the supply network members and the high degree of nonlinear interactions between them. Mathematical and operation research models usually do not function very well for this kind of financial decision making. These models always start with many assumptions and have difficulties modeling such complex systems that include many entities, relationships, features, parameters, and constraints. In addition, traditional modeling and analysis tools lack the ability to predict the impact of a specific event on the performance of the entire supply network.  Current financial data analysis with large volumes of structure data cannot offer the full picture and intrinsic insights into the risk nature of a company. Motivated by the literature gap in risk monitoring in investment background and limitations of analysis approaches for handling bankruptcy contagion phenomenon, we propose an ontological approach to present a formal, shared conceptualization of this domain knowledge.

From Inter-Firm Trade Finance in Times of Crisis

The severe recession that is hitting the global economy, with very low or even negative growth rates, has caused widespread contractions in international trade, both in developed and developing countries. World Trade Organization (WTO) has forecast that exports will decline by roughly 9% in volume terms in 2009 due to the collapse in global demand brought on by the biggest economic downturn in decades. The contraction in developed countries will be particularly severe with exports falling by 10%. In developing countries, which account for one-third of world trade, exports will shrink by some 2% to 3% in 2009.

The contraction in international trade has been accompanied by a sharp decline in the availability of trade finance. This decline is only partly explained by the contraction in demand: according to a BAFT (Banker’s Association for Trade and Finance) and International Monetary Fund (IMF) joint survey (2009), flows of trade finance to developed countries have fallen by 6% relative to the previous year, more than the reduction in trade flows, suggesting that part of the fall reflects a disruption of financial intermediation. The contraction in value of trade finance has also been accompanied by a sharp increase in its price. Fear that the decline in trade finance and the increase in its cost would accelerate the slowdown of world trade has triggered a number of government initiatives in support of trade finance (Chauffour and Farole,2009).

The situation is especially worrisome for firms operating in developing countries which rely heavily on trade finance to support both their exports and imports.1 With a restricted access to financing and an increased cost of financing, these firms may find difficulties in maintaining their production and trade activities.

 

Please see my related posts:

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

Production Chain Length and Boundary Crossings in Global Value Chains

Intra Industry Trade and International Production and Distribution Networks

Understanding Trade in Intermediate Goods

Trends in Intra Firm Trade of USA

Production and Distribution Planning : Strategic, Global, and Integrated

Development of Global Trade and Production Accounts: UN SEIGA Initiative

The Dollar Shortage, Again! in International Wholesale Money Markets

FDI vs Outsourcing: Extending Boundaries or Extending Network Chains of Firms

The Collapse of Global Trade during Global Financial Crisis of 2008-2009

Understanding Global Value Chains – G20/OECD/WB Initiative

Economics of Trade Finance

Balance Sheets, Financial Interconnectedness, and Financial Stability – G20 Data Gaps Initiative

Oscillations and Amplifications in Demand-Supply Network Chains

Contagion in Financial (Balance sheets) Networks

 

Key Sources of Research:

 

LIQUIDITY, BUSINESS CYCLES, AND MONETARY POLICY

Nobuhiro Kiyotaki
London School of Economics

John Moore
Edinburgh University and London School of Economics

27 November 2001

https://www.imf.org/external/np/seminars/eng/2008/fincycl/pdf/kimo.pdf

 

 

Credit Cycles

Nobuhiro Kiyotaki; John Moore

The Journal of Political Economy, Vol. 105, No. 2.

(Apr., 1997),

http://www.nviegi.net/teaching/master/km.pdf

 

Credit chains

Nobuhiro Kiyotaki (Princeton University)

John Moore (University of Edinburgh)

Date January 1997

http://www.econ.ed.ac.uk/papers/id118_esedps.pdf

https://www.minneapolisfed.org/research/conferences/research-events—conferences-and-programs/~/media/files/research/events/1997_01-31/Kiyotaki_CreditChains.pdf

 

 

Credit and Business Cycles

N Kiyotaki

1998

https://www.princeton.edu/~kiyotaki/papers/Credit-and-BusinessCycles.pdf

 

 

Inter-Enterprise Credit and Adjustment  During Financial Crises: The Role of Firm Size

Fabrizio Coricelli

Marco Frigerio

July, 2 2016

https://cepr.org/sites/default/files/Coricelli%2C%20Fabrizio%20paper.pdf

 

 

Credit chains and bankruptcy propagation in production networks

Stefano Battiston, Domenico Delli Gatti, Mauro Gallegati,
Bruce Greenwald, Joseph E. Stiglitz

2007

https://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/2007_Credit_Chains.pdf

 

 

Trade Finance in Crisis : Market Adjustment or Market Failure ?

Jean-Pierre Chauffour

Thomas Farole

Date Written: July 1, 2009

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1437955

Resaleable debt and systemic risk

Jason Roderick Donaldson , Eva Micheler

2018

http://www.jrdonaldson.com/Papers/Donaldson-Micheler-Resaleable_Debt.pdf

 

Supply chains and credit-market shocks: Some implications for emerging markets,

Jinjarak, Yothin (2013)

ADBI Working Paper Series, No. 443

https://www.econstor.eu/bitstream/10419/101241/1/770887406.pdf

 

 

Financial Amplification Mechanisms and the Federal Reserve’s Supply of Liquidity during the Crisis

Asani Sarkar
Jeffrey Shrader

Staff Report no. 431
February 2010

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr431.pdf

 

 

Aggregate Fluctuations and the Role of Trade Credit

Lin Shao

2017

https://www.bankofcanada.ca/wp-content/uploads/2017/09/swp2017-37.pdf

 

 

Supply Chain Disruptions and Trade Credit

LU Yi OGURA Yoshiaki

TODO Yasuyuki ZHU Lianming

2017

https://www.rieti.go.jp/jp/publications/dp/17e054.pdf

 

 

Credit Shocks and Aggregate Fluctuations in  an Economy with Production Heterogeneity

Aubhik Khan

Julia K. Thomas

September 2013

https://www.aubhik-khan.net/KhanThomasDCTsept2013.pdf

 

 

Financial Frictions in Production Networks

Saki Bigio

Jennifer La’O

February 7, 2013

https://www0.gsb.columbia.edu/faculty/sbigio/papers/FinancialFrictionsNetworks.pdf

 

Working Paper No. 67, April 2016

http://perueconomics.org/wp-content/uploads/2014/01/WP-67.pdf

 

 

The Origins of Aggregate Fluctuations in a Credit Network Economy

Levent Altinoglu

October 16, 2016
http://blogs.bu.edu/levent/files/2015/10/Altinoglu_JMP_CurrentVersion.pdf

September 30, 2015

https://pdfs.semanticscholar.org/425a/fcb800d01a5b8dce9ed13a4a200bf51f6fed.pdf

 

Consolidated Bibliography

WTO

https://www.wto.org/english/res_e/booksp_e/aid4tradesupplychain13_biblio_e.pdf

 

 

Propagation of Financial Shocks in an Input-Output Economy with Trade and Financial Linkages of Firms

Shaowen Luo

December 4, 2015

http://www.economics.illinois.edu/seminars/documents/Luo.pdf

 

FDI, Trade Credit, and Transmission of Global Liquidity Shocks:
Evidence from Chinese Manufacturing Firms

Shu Lin and Haichun Ye

http://www.econ.cuhk.edu.hk/econ/images/content/news_event/seminars/2016-2017-2nd-semester/Lin–Ye_paper.pdf

 

 

Trade Credit, Financing Structure and Growth

Junjie Xia

October 27, 2016

http://www.junjiexia.com/uploads/7/6/7/2/76726065/jmp_oct16.pdf

 

The impact of corporate distress along the supply chain: evidences from United
States

Lucia Gibilaro

Gianluca Mattarocci

http://www.efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2017-Athens/papers/EFMA2017_0526_fullpaper.pdf

 

 

Does credit crunch investments down?
New evidence on the real eects of the bank-lending channel

Federico Cinganoz Francesco Manaresix Enrico Settex

December 2013

http://www.federicocingano.eu/Credit_crunch_investments.pdf

 

Interwoven Lending, Uncertainty, and Liquidity Hoarding

Adam Zawadowski

December 13, 2017

http://www.personal.ceu.hu/staff/Adam_Zawadowski/papers/credit.pdf

 

 

Trade credit: Elusive insurance of rm growth

DENNIS BAMS, JAAP BOS and MAGDALENA PISA*

October 5, 2016

http://www.research.mbs.ac.uk/accounting-finance/Portals/0/Users/002/02/2/Trade%20credit%20Elusive%20insurance%20of%20firm%20growth%202016.pdf

 

 

Chain Reactions, Trade Credit and the Business Cycle

Miguel Cardoso-Lecourtois

http://fmwww.bc.edu/RePEc/esNASM04/up.4593.1075462930.pdf

 

From production networks to geographical economics.

Gérard Weisbuch, Stefano Battiston.

Journal ofEconomic Behavior and Organization, Elsevier, 2007, 64 (3- 4), pp.448

https://hal.archives-ouvertes.fr/hal-00531863/document

 

 

Production networks and failure avalanches

Gerard Weisbuch
Stefano Battiston

March 5, 2018

https://arxiv.org/pdf/physics/0507101.pdf

 

 

Self-organised patterns in production networks

Gerard Weisbuch

October 10, 2005

http://www.lps.ens.fr/~weisbuch/gwcomplexus.pdf

 

 

Networks : Propagation of Shocks over Economic Networks

Daron Acemoglu

July 22, 2014.

https://economics.mit.edu/files/9790

 

 

Debt-Rank Analysis of Financial Distress Propagation on a Production Network in Japan

FUJIWARA Yoshi
University of Hyogo
TERAI Masaaki
RIKEN
FUJITA Yuji
Turnstone Research Institute, Inc.
SOUMA Wataru
Nihon University

https://www.rieti.go.jp/jp/publications/dp/16e046.pdf

 

 

Operational causes of bankruptcy propagation in supply chain

Zhongsheng Hua ⁎, Yanhong Sun 1, Xiaoyan Xu

2011

http://isiarticles.com/bundles/Article/pre/pdf/48280.pdf

 

 

Propagation of Financial Shocks in an Input-Output Economy with Trade and Financial Linkages of Firms

Shaowen Luo
September 20, 2015

http://www.econ.vt.edu/seminars/Seminar%20Papers/2016/10-02-15Luo.pdf

 

 

From Micro to Macro via Production Networks

Vasco M. Carvalho

http://www.crei.cat/wp-content/uploads/users/working-papers/carvalho_from_micro.pdf

 

 

Trade Credit and the  Propagation of Corporate Failure: An Empirical
Analysis

Tor Jacobson and Erik von Schedvin
August 2012

https://www.econstor.eu/bitstream/10419/81882/1/723939764.pdf

 

CREDIT MARKET DISRUPTIONS AND LIQUIDITY SPILLOVER EFFECTS IN THE SUPPLY CHAIN

Anna M. Costello

August 8, 2017

https://www.gsb.stanford.edu/sites/gsb/files/costello-anna-acctgcamp2017_0.pdf

 

Modeling defaults of companies in multi-stage supply chain networks

Kamil J.Mizgier, StephanM.Wagner,, JanuszA.Holyst

2010

http://mars.if.pw.edu.pl/~jholyst/Mizgier_etal_InPress_Modeling_defaults_of.pdf

 

 

 

The origins of scale-free production networks

Stanislao Gualdizand Antoine Mandelx

June 28, 2015

http://www.siecon.org/online/wp-content/uploads/2015/10/Gualdi.pdf

 

 

Optimization of order policies in supply networks

S. GÄottlich¤ M. Hertyy C. Ringhoferz

August 18, 2008

https://www.ki-net.umd.edu/pubs/files/FRG-2008-Ringhofer-Christian.FRG_Ringhofer_Orders080814.pdf

 

Financial Instability after Minsky: Heterogeneity, Agent Based Models and Credit
Networks

Domenico Delli Gatti

April 10, 2012

https://www.ineteconomics.org/uploads/papers/delli-gatti-domenico-berlin-paper.pdf

 

Measuring the Systemic Risk in Inter firm Transaction Networks

Makoto Hazama
And
Iichiro Uesugi

http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/28392/1/wp066.pdf

 

Systemic Risk Assessment in Complex Supply Networks

Anna Ledwoch, Alexandra Brintrup, J¨orn Mehnen, Ashutosh Tiwari

https://pure.strath.ac.uk/portal/files/66716085/Ledwoch_etal_SJ_2016_Systemic_risk_assessment_in_complex_supply_networks.pdf

 

TRADE CREDIT DEFAULTS AND LIQUIDITY PROVISION BY FIRMS

Reint Gropp
Frédéric Boissay

2007

https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp753.pdf

 

The future of agent-based modelling.

Matteo Richiardi

Institute for New Economic Thinking and Nuffield College, Oxford, United Kingdom
Collegio Carlo Alberto, Moncalieri, Italy

This draft: June 2015

https://www.nuffield.ox.ac.uk/media/1702/abmfuture-v12.pdf

 

 

Financially Constrained Fluctuations in an Evolving Network Economy

Domenico Delli Gatti
Mauro Gallegati
Bruce Greenwald
Alberto Russo
Joseph E. Stiglitz

http://terna.to.it/ABM-BaF09/presentations/DelliGatti%28presentation%29_ABM.pdf

 

 

Credit Chains and Sectoral Comovement: Does the Use of Trade Credit Amplify Sectoral Shocks?

Claudio Raddatz

The World Bank
March, 2007

http://www.webmeets.com/files/papers/LACEA-LAMES/2007/335/Credit_chains_051707_withtables.pdf

 

 

Linkages and spillovers in global production networks: firm-level analysis of the Czech automotive industry

Petr Pavlinek

Pavla Žížalová

https://digitalcommons.unomaha.edu/cgi/viewcontent.cgi?article=1039&context=geoggeolfacpub

 

Ontology of Bankruptcy Diffusion through Trade Credit
Channel

Lin Cheng

Huaiqing Wang

Huaping Chen

https://50years.acs.org.au/content/dam/acs/50-years/journals/jrpit/JRPIT44.4.401.pdf

 

OPTIMAL ORDER AND DISTRIBUTION STRATEGIES IN PRODUCTION NETWORKS

Simone Gottlich, Michael Herty, and Christian Ringhofer

https://math.la.asu.edu/~chris/SpringerOpt10.pdf

 

Profitability, Trade Credit and Institutional Structure of Production

Michael Gofman
December 9, 2013

http://gofman.info/TC/Supplier-Customer%20Network.pdf

 

The Economics of Information and Financial
Networks

Stefano Battiston
July 22, 2016

https://simpolproject.eu/download/simpol-initiative-research/battiston2016information.pdf

 

Supply Chain Perspectives and Issues: A Literature Review

Albert Park
Gaurav Nayyar
Patrick Low

http://www.asiaglobalinstitute.hku.hk/en/wp-content/uploads/2016/06/supply-chain-perspectives-and-issues.pdf

 

 

LIAISONS DANGEREUSES: INCREASING CONNECTIVITY, RISK SHARING, AND SYSTEMIC RISK

Stefano Battiston
Domenico Delli Gatti
Mauro Gallegati
Bruce C. Greenwald
Joseph E. Stiglitz

http://www.nber.org/papers/w15611.pdf

 

 

Inter-Firm Trade Finance in Times of Crisis

Anna Maria C. Menichini

http://documents.worldbank.org/curated/en/649481468314087810/pdf/WPS5112.pdf

 

 

Reducing the Probability of Bankruptcy Through Supply Chain Coordination

Xiaoyan Xu, Yanhong Sun, and Zhongsheng Hua

2010

https://www.researchgate.net/profile/Yanhong_Sun5/publication/220508846_Reducing_the_Probability_of_Bankruptcy_Through_Supply_Chain_Coordination/links/573eac9d08ae298602e6e77a.pdf

 

 

Pathways towards instability in financial networks

Marco Bardoscia, Stefano Battiston Fabio Caccioli & Guido Caldarelli

2017

http://lims.ac.uk/wp-content/uploads/bardoscia2017pathways-1.pdf

 

 

International Credit Supply Shocks

Ambrogio Cesa-Bianchiy Andrea Ferreroz Alessandro Rebuccix

June 16, 2017

https://www.bostonfed.org/-/media/Documents/events/2017/boston-policy-workshop/AlessandroRebucci.pdf?la=en

 

Risk Propagation through Payment Distortion in Supply Chains

Alejandro Serrano

Rogelio Oliva

Santiago Kraiselburd

https://pdfs.semanticscholar.org/5b5f/0e6d7dc9d4b4f6bcada884b71562791404ed.pdf

 

 

Payment Defaults and Interfirm Liquidity Provision

https://academic.oup.com/rof/article-abstract/17/6/1853/1591419

 

SYSTEMIC RISK: A SURVEY

BY OLIVIER DE BANDT
AND PHILIPP HARTMANN

November 2000

https://www.econstor.eu/bitstream/10419/152469/1/ecbwp0035.pdf

 

 

Risk Propagation in Supply Chains

Alejandro Serrano

Rogelio Oliva

Santiago Kraiselburd

https://pdfs.semanticscholar.org/2db1/f3278ab2a75ff11b0142fba19a4cf223805a.pdf

 

 

How Inventory Is (Should Be) Financed: Trade Credit in Supply Chains with Demand
Uncertainty and Costs of Financial Distress

Song (Alex) Yang, John R. Birge

http://faculty.chicagobooth.edu/workshops/omscience/past/more/pdf/YangBirge_trade%20credit.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2746645

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1734682

 

 

The Supply Chain Effects of Bankruptcy

S. Alex Yang

John R. Birge, Rodney P. Parker

https://pdfs.semanticscholar.org/6efb/86a8667f24af2c6a5cd7eb52bbd12b39697b.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.715.5812&rep=rep1&type=pdf

 

Supply Chain Management: Supplier Financing Schemes and Inventory Strategies

Min Wang

https://www8.gsb.columbia.edu/programs/sites/programs/files/abstracts/Min_Wang_Dissertation.pdf

 

Foreign Investment and Supply Chains in Emerging Markets: Recurring Problems and Demonstrated Solutions

Theodore H. Moran

PIIE

2014

https://piie.com/publications/wp/wp14-12.pdf

 

Improving cash flow using credit management
The outline case

http://www.cimaglobal.com/Documents/ImportedDocuments/cid_improving_cashflow_using_credit_mgm_Apr09.pdf.pdf

 

CREDIT CHAINS AND THE PROPAGATION OF
FINANCIAL DISTRESS

2006

by Frederic Boissay

http://sdw.zentral-bank.eu/pub/pdf/scpwps/ecbwp573.pdf

 

Exposure to international crises: trade vs. financial contagion

Everett Grant

2016

https://www.esrb.europa.eu/pub/pdf/wp/esrbwp30.en.pdf?7b7cc950c1a2286d395ed8489bfde5c7

 

 

Credit Contagion and Trade Credit Supply:
Evidence from Small Business Data in Japan

TSURUTA Daisuke

https://www.rieti.go.jp/jp/publications/dp/07e043.pdf

 

 

The Price of Complexity in Financial Networks

Joseph Stiglitz

2017

https://www8.gsb.columbia.edu/faculty/jstiglitz/sites/jstiglitz/files/The%20Price%20of%20Complexity%20in%20Financial%20Networks.pdf

 

 

The Price of Complexity in Financial Networks

S. Battiston

2017

https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/risk/downloads/160913_slides_battison.pdf

 

 

 

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

 

 

From STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

fscm8

There are two Areas where FSCM/SCF names are used but in different contexts.

  • Inter firm FSCM
  • Intra firm FSCM

 

Inter firm F-SCM

  • Trade Finance
  • Supply Chain Finance (SCF)
  • Value Chain Finance
  • Supplier Finance
  • Inter firm Finance
  • Reverse Factoring
  • Collaborative  Cash to Cash Cycles Management

During 2008 global financial crisis, the trade financing dried up resulting in decline in trade of goods and services.

Since the crisis, Financial De-globalization and Decline of Correspondent Banking has also made availability of financial credit harder.

Cash flow and working capital management is helped by inter firm collaboration among Suppliers and Buyers.

Financial Institutions which provide trade credit also benefit from inter firm collaboration.

 From SUPPLY CHAIN FINANCE FUNDAMENTALS: What It Is, What It’s Not and How it Works

What Supply Chain Finance is Not

The world of trade finance is complex and varied. There are numerous ways to increase business capital on hand and, in many cases, the differences are slightly nuanced. Given this landscape, it’s not just important to understand what supply chain finance is; it’s also important to understand what it is not.

It is not a loan. Supply chain finance is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a non-recourse, true sale of receivables. There is no lending on either side of the buyer/supplier equation, which means there is no impact to balance sheets.

It is not dynamic discounting or an early payment program. Early payment programs, such as dynamic discounting, are buyer-initiated programs where buyers offer suppliers earlier payments in return for discounts on their invoices. Unlike supply chain finance, buyers are seeking to lower their cost of goods, not to improve their cash flow. Dynamic discounting and early payment programs often turn out to be expensive for both suppliers (who are getting paid less than agreed upon) and buyers who tie up their own cash to fund the programs.

It is not factoring. Factoring enables a supplier to sell its invoices to a factoring agent (in most cases, a financial institution) in return for earlier, but partial, payment. Suppliers initiate the arrangement without the buyer’s involvement. Thus factoring is typically much more expensive than buyer-initiated supply chain finance. Also, suppliers trade “all or nothing” meaning they have no choice to participate from month-to-month to the degree that their cash flow needs dictate. Finally, most factoring programs are recourse loans, meaning if a supplier has received payment against an invoice that the buyer subsequently does not pay, the lender has recourse to claw back the funds.

 

From Mckinsey on Payments

fscm10

 

From Financial Supply Chain Management

financial-supply-chain-management-4-728

 

From Best Practices in Cash Flow Management and Reporting

46_-3571_20

 

From STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

fscm9

 

From Financing GPNs through inter-firm collaboration?
Insights from the automotive industry in Germany and Brazil

fscm 3

 

Intra Firm F-SCM

  • Working Capital Management
  • Cash Flow Management
  • Liquidity Management
  • Cash to Cash Conversion Cycle Management (C2C Cycle/CCC)
  • Financial Supply Chain Management (F-SCM) in Manufacturing companies
  • Financial Supply chain management in financial institutions
  • Supply Chain Finance
  • Accounts Payable Optimization
  • Accounts Receivable Optimization
  • Operations and Finance Interfaces
  • Current Asset Management (Current Ratio Analysis)

This is not a new subject.  Corporate Finance, Financial Controls, and working capital management have been active business issues.  Benefits of Supply chain management include increase in inventory turnover and decline in current assets.

There are many world class companies who manage their supply chains well and work with minimal working capital.  Lean Manufacturing, Agile Manufacturing, JIT manufacturing are related concepts.  Just-In-Time manufacturing developed in Toyota Corp. reduces inventory portion of C2C cycle.  Other examples include

  • Apple
  • Walmart
  • Dell

Currently, most of the Supply Chain analytics efforts unfortunately do not integrate analysis of financial benefits of operating decisions.

There are many studies recently which suggest that Cash to Cash Conversion Cycle is a better determinant of corporate liquidity.  C2C Cycle is a dynamic liquidity indicator and Current Assets is a static indicator of liquidity.  I would like to point out that none of the studies relate C2C cycle with Current Ratio.  Current Ratio is based on balance sheet positions of current assets and current liabilities.  C2C cycle is based on flows in supply chains.  Accumulation of flow results in Current assets (Stock).  To make it Stock-Flow Consistent, more work is required.

 

From Supply Chain Finance: some conceptual insights.

fscm2

From Financial Supply Chain Management

financial-supply-chain-management-5-728

 

From The Interface of Operations and Finance in Global Supply Chains

fscm4

 

From SUPPLY CHAIN-ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT

ifscm5

 

From IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

fscm6

 

From IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

fscm7

 

From THE CYCLE TIMES OF WORKING CAPITAL: FINANCIAL VALUE CHAIN ANALYSIS METHOD

fscm12

 

Call for papers: Supply Chain Finance

Call for papers for Special Topic Forum in Journal of Purchasing and Supply Management (Manuscript Submission:  March 31, 2017)

Supply chain finance is a concept that lacks definition and conceptual foundation.  However, the recent economic downturn forced corporates to face a series of financial and economic difficulties that strongly increased supply chain financial risk, including bankruptcy or over-leveraging of debt.  The mitigation and management of supply chain financial risk is becoming an increasingly important topic for both practitioners and academics leading to a developing area of study known as supply chain finance.  There are two major perspectives related to the idea of managing finance across the supply chain.  The first is a relatively short-term solution that serves as more of a “bridge” and that is provided by financial institutions, focused on accounts payables and receivables.  The second is more of a supply chain oriented perspective – which may or may not involve a financial institution, focused on working capital optimization in terms of accounts payable, receivable, inventory, and asset management.  These longer-term solutions focus on strategically managing financial implications across the supply chain.

Recent years have seen a considerable reduction in the granting of new loans, with a significant increase in the cost of corporate borrowing (Ivashina and Scharfstein, 2010). Such collapse of the asset and mortgage-backed markets dried up liquidity from industries (Cornett et al., 2011). In such difficult times, firms (especially those with stronger bargaining power) forced suppliers to extend trade credit in order to supplement the reduction in other forms of financing (Coulibaly et al., 2013; Garcia-Appendini and Montoriol-Garriga, 2013). The general lack of liquidity, in particular for SMEs, has directly affected companies’ ability to stay in the market, reflecting on the stability of entire supply chains. There are many other factors influencing liquidity and financial health that are critical to assess.

These trends and the continued growth of outsourced spend have contributed considerably to the need for and spread of solutions and programs that help to mitigate and better manage financial risk within and across the supply chain.  One of the most important approaches is what is being termed Supply Chain Finance (SCF) (Gelsomino et al., 2016; Pfohl and Gomm, 2009; Wuttke et al., 2013a). SCF is an approach for two or more organizations in a supply chain, including external service provides, to jointly create value through means of planning, steering, and controlling the flow of financial resources on an inter-organizational level (Hofmann, 2005; Wuttke et al., 2013b).  It involves the inter-company optimization of financial flows with customers, suppliers and service providers to increase the value of the supply chain members  (Pfohl and Gomm, 2009).  According to Lamoureux and Evans (2011) supply chain financial solutions, processes, methods are designed to improve the effectiveness of financial supply chains by preventing detrimental cost shifting and improving the visibility, availability, delivery and cost of cash for all global value chain partners.  The benefits of the SCF approach include reduction of working capital, access to more funding at lower costs, risk reduction, as well as increase of trust, commitment, and profitability through the chain (Randall and Farris II, 2009).

Literature on SCF is still underdeveloped and a multidisciplinary approach to research is needed in this area. In order to better harmonize contributions of a more financial nature with ones coming from the perspective of purchasing & supply chain, there is a need of developing theory on SCF, starting with a comprehensive definition of those instruments or solutions that constitute the SCF landscape. SCF has been neglected in the Purchasing & Supply Management (PSM) literature, although PSM plays a critical role in managing finance within the supply chain.  PSM uses many of the processes and tools that are part of a comprehensive supply chain financial program to better manage the supply base, in terms of relationships, total cost of ownership, cost strategies and pricing volatility (see for example Shank and Govindarajan 1992). Reverse factoring is a technique which is also widely used to manage the supply base (Wuttke et al, 2013a) as is supplier development and investment in suppliers.

Research on SCF from a PSM perspective needs further development. In particular, empirical evidence would prove useful for testing existing models and hypotheses, addressing the more innovative schemes and investigating the adoption level and the state of the art of different solutions. Research is also needed for the development of a general theory of supply chain finance.  There is also limited research that focuses on the link between supply chain financial tools and supply chain financial performance.  Finally, considering the plurality of solutions that shape the SCF landscape, literature should move towards the definition of holistic instruments to choose the best SCF strategy for a supply chain, considering its financial performance and the contextual variables (e.g. structure, bargaining power) that characterize it.

Potential topics

The purpose of this special topic forum is to publish high-quality, theoretical and empirical papers addressing advances on Supply Chain Finance. Original, high quality contributions that are neither published nor currently under review by any other journals are sought. Potential topics include, but are not limited to:

  • Theory development, concept and definition of SCF
  • Taxonomy of SCF solutions
  • Strategic cost management across the supply chain
  • Total cost of ownership
  • Life cycle assessment and analysis
  • Commodity risk and pricing volatility
  • Supply chain financial metrics and measures
  • Cost-benefit analysis
  • Relationship implications of supply chain finance
  • Tax and transfer pricing in the supply chain
  • Foreign exchange and global currency and financing risk
  • Financial network design and financial supply chain flows
  • The organizational perspective on SCF and the implementation process
  • Role of innovative technologies to support SCF ( (e.g. block chain, internet of things)
  • Supply chain collaboration for improved supply chain financial solutions
  • SCF adoption models, enablers and barriers
  • SCF from different party perspectives (especially suppliers and providers)
  • SCF and risk mitigation and management

Manuscript preparation and submission

Before submission, authors should carefully read the Journal’s “Instructions for Authors”. The review process will follow the Journal’s normal practice. Prospective authors should submit an electronic copy of their complete manuscript via Elsevier’s manuscript submission system (https://ees.elsevier.com/jpsm) selecting “STF Supply Chain Finance” as submission category and specifying the Supply Chain Finance topic in the accompanying letter. Manuscripts are due March 31, 2017 with expected publication in June of 2018.

FOR COMMENTS OR QUESTIONS PLEASE CONTACT THE GUEST EDITORS:

Federico Caniato, Politecnico di Milano, School of Management, federico.caniato@polimi.it

Michael Henke, TU Dortmund and Fraunhofer IML, Michael.Henke@iml.fraunhofer.de

George A. Zsidisin, Virginia Commonwealth University, gazsidisin@vcu.edu

References

Cornett, M.M., McNutt, J.J., Strahan, P.E., Tehranian, H., 2011. Liquidity risk management and credit supply in the financial crisis. J. financ. econ. 101, 297–312.

Coulibaly, B., Sapriza, H., Zlate, A., 2013. Financial frictions, trade credit, and the 2008–09 global financial crisis. Int. Rev. Econ. Financ. 26, 25–38.

Garcia-Appendini, E., Montoriol-Garriga, J., 2013. Firms as liquidity providers: Evidence from the 2007–2008 financial crisis. J. financ. econ. 109, 272–291.

Gelsomino, L.M., Mangiaracina, R., Perego, A., Tumino, A., 2016. Supply Chain Finance: a literature review. Int. J. Phys. Distrib. Logist. Manag. 46, 1–19.

Govindarajan, Vijay, and John K. Shank. “Strategic cost management: tailoring controls to strategies.” Journal of Cost Management 6.3 (1992): 14-25.

Wuttke, D. A., Blome, C., Foerstl, K., & Henke, M. (2013a). Managing the innovation adoption of supply chain finance—Empirical evidence from six European case studies. Journal of Business Logistics, 34(2), 148-166.

Wuttke, D. A., Blome, C., & Henke, M. (2013b). Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management. International journal of production economics, 145(2), 773-789.

Hofmann, E., 2005. Supply Chain Finance: some conceptual insights. Logistik Manag. Innov. Logistikkonzepte. Wiesbad. Dtsch. Univ. 203–214.

Ivashina, V., Scharfstein, D., 2010. Bank lending during the financial crisis of 2008. J. financ. econ. 97, 319–338.

Lamoureux, J.-F., Evans, T.A., 2011. Supply Chain Finance: A New Means to Support the Competitiveness and Resilience of Global Value Chains. Social Science Research Network, Rochester, NY.

Lekkakos, S.D., Serrano, A., 2016. Supply chain finance for small and medium sized enterprises: the case of reverse factoring. Int. J. Phys. Distrib. Logist. Manag.

Pfohl, H.C., Gomm, M., 2009. Supply chain finance: optimizing financial flows in supply chains. Logist. Res. 1, 149–161.

Randall, W., Farris II, T., 2009. Supply chain financing: using cash-to-cash variables to strengthen the supply chain. Int. J. Phys. Distrib. Logist. Manag. 39, 669–689.

 

 

Please see my Related Posts.

The Collapse of Global Trade during Global Financial Crisis of 2008-2009

The Dollar Shortage, Again! in International Wholesale Money Markets

Economics of Trade Finance

Hierarchical Planning: Integration of Strategy, Planning, Scheduling, and Execution

Production and Distribution Planning : Strategic, Global, and Integrated

Integrated Macroeconomic Accounts, NIPAs, and Financial Accounts

Key Sources of Research:

 

SUPPLY CHAIN FINANCE FUNDAMENTALS: What It Is, What It’s Not and How it Works

http://primerevenue.com/wp-content/uploads/2016/08/supplychainFundamentals.pdf

Call for papers: Supply Chain Finance

Call for papers for Special Topic Forum in Journal of Purchasing and Supply Management (Manuscript Submission:  March 31, 2017)

https://www.journals.elsevier.com/journal-of-purchasing-and-supply-management/call-for-papers/call-for-papers-supply-chain-finance

 

FINANCIAL SUPPLY CHAIN MANAGEMENT – CHALLENGES AND OBSTACLES

Peter Kristofik, Jenny Kok, Sybren de Vries, Jenny van Sten-van’t Hoff

2012

http://www.journals.acrn.eu/resources/Journals/Joe022012/201202h.pdf

 

 

Supply chain finance: optimizing financial flows in supply chains

Hans-Christian Pfohl • Moritz Gomm

2009

https://www.researchgate.net/profile/Hans_Christian_Pfohl/publication/220232986_Supply_Chain_Finance-_Optimizing_Financial_Flows_in_Supply_Chains/links/5576960408ae75363751afb1.pdf

 

 

Supply Chain Finance: some conceptual insights.

Hofmann, E. (2005)

In: Lasch, R./ Janker, C.G. (Hrsg.): Logistik Management – Innovative Logistikkonzepte, Wiesbaden
2005, S. 203-214.

https://www.alexandria.unisg.ch/22597/1/Supply%20Chain%20Finance.pdf

 

 

Financial Supply Chain Management – A review

Georgios Vousinas

2017

https://www.researchgate.net/publication/320196808_Financial_Supply_Chain_Management_-_A_review

 

 

Basic areas of management of finance flow in supply chains

Marlena Grabowska1

Częstochowa University of Technology

https://www.czasopismologistyka.pl/artykuly-naukowe/send/301-artykuly-drukowane/4621-artykul

 

THE FLOW OF FINANCIAL RESOURCES:AN INEVITABLE PART OF SUPPLY CHAIN
DESIGN ACTIVITIES

ERIK HOFMANN

https://www.alexandria.unisg.ch/50999/1/Hofmann_The%20flow%20of%20financial%20resources%20-%20An%20inevitable%20part%20of%20supply%20chain%20design%20activities.pdf

 

Motorola’s global financial supply chain strategy

Ian D. Blackman

Christopher P. Holland

Timothy Westcott

https://www.researchgate.net/profile/Ian_Blackman/publication/256462716_Motorola%27s_global_financial_supply_chain_strategy/links/0c960522de3de564bb000000/Motorolas-global-financial-supply-chain-strategy.pdf

A SUPPLY CHAIN-ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT

 

Erik Hofmann

Herbert Kotzab

2010

 

http://www.academia.edu/download/38511199/Hofmann_et_al-2010-Journal_of_Business_Logistics.pdf

Financial Supply Chain Management – Neue Herausforderungen für die Finanz- und Logistikwelt.

Pfohl, H.-Chr./ Hofmann, E./ Elbert, R. (2003):

In: Logistik Management 5 (2003) 4, S. 10-26

https://www.alexandria.unisg.ch/29035/1/Financial%20Supply%20Chain%20Management.pdf

 

Financing GPNs through inter-firm collaboration?
Insights from the automotive industry in Germany and Brazil

Christian Baumeister
Hans-Martin Zademach

http://www.ku.de/fileadmin/150304/img/Publikationen/MDW_21__2013__Financing_GPNs.pdf

 

 

Die Financial Chain im Supply Chain Management: Konzeptionelle Einordnung und Identifikation von Werttreibern.

Franke, J./ Pfaff, D./ Elbert, R./ Gomm, M./ Hofmann, E. (2005):

In: Ferstel, O. K./ Sinz, E. J./ Eckert, S./ Isselhorst, T. (Hrsg.): Wirtschaftsinformatik 2005. eEcono‐my, eGovernment, eSociety. Heidelberg 2005, S. 567‐584

https://pdfs.semanticscholar.org/ced5/8858fcdb171db931b3c033bb1cdf55ea7683.pdf

 

 

Financial-Chain-Management
Ein generisches Modell zur Identifikation von Verbesserungspotenzialen

Donovan Pfaff
Bernd Skiera
TimWeitzel

http://www.e-docs-standards.de/cms/images/Publikationen/wi2004_2_107-117.pdf

 

 

The Effects of Cross-Functional Integration on Profitability, Process
Efficiency, and Asset Productivity

Morgan Swink and Tobias Schoenherr

http://www.logisticsexpert.org/top_articles/2016/2016%20-%20Research%20-%20JBL%20-%20The%20Effects%20of%20Cross-Functional%20Integration%20on%20Profitability,%20Process%20Efficiency.pdf

 

 

Quantifying and setting off network performance

Erik Hofmann

2006

https://www.alexandria.unisg.ch/30679/1/Quantifying%20Network%20Performance_final%20version.pdf

 

 

Developing and discussing a supply chain-oriented model of collaborative working capital management

by
Erik Hofmann, University of St.Gallen, Switzerland
& Herbert Kotzab, Copenhagen Business School, Denmark

2006

 

http://www.academia.edu/download/39750008/Developing_and_discussing_a_supply_chain20151106-23047-gve831.pdf

 

 

The link between Purchasing and Supply Management maturity
models and the financial performance of international firms

Fábio Pollice
Afonso Fleury

 

http://ejournal.narotama.ac.id/files/The%20link%20between%20purchasing%20and%20supply%20management%20maturity%20models%20and%20the%20financial%20performance%20of%20international%20firms.pdf

 

 

SUPPLY CHAIN FINANCE
A Buyer-Centric Supplier Payables Financing Initiative

Martin Jemdahl
Lund, 2015

http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=8870575&fileOId=8870576

 

 

Supply Chain Finance: Optimal Introduction and Adoption Decisions

David A. Wuttke, Constantin Blome, H. Sebastian Heese and Margarita
Protopappa-Sieke

http://sro.sussex.ac.uk/61216/1/__smbhome.uscs.susx.ac.uk_qlfd7_Desktop_Supply%20Chain%20Finance%20Blome.pdf

 

 

The Value of Supply Chain Finance

Xiangfeng Chen and Chenxi Hu

https://cdn.intechopen.com/pdfs-wm/17676.pdf

 

Supply Chain Finance “Is SCF ready to be applied in SMEs?”

Jan H Jansen

https://www.researchgate.net/profile/Jan_Jansen11/publication/305391903_Supply_Chain_Finance_Is_SCF_ready_to_be_applied_in_SMEs/links/578cb87508ae5c86c9a6355b.pdf

 

 

Win-win and no-win situations in supply chain finance: The case of accounts receivable programs

Erik Hoffman

https://www.alexandria.unisg.ch/248126/1/Triple-win-situations%20in%20supply%20chain%20finance_final.pdf

 

Introducing a financial perspective in Supply Chain Management: a literature review on Supply Chain Finance

Luca M. Gelsomino, Riccardo Mangiaracina,
Alessandro Perego, Angela Tumino

http://www.summerschool-aidi.it/edition-2015/images/ancona2014/sessione5/gelsomino_et_al.pdf

 

 

Towards A Theory Of Supply Chain And Finance Using Evidence From A Scottish Focus Group

R. de Boer, R. Dekkers, L. M. Gelsomino, C. de Goeij, M. Steeman Q. Zhou,
S. Sinclair, V. Souter

2017

https://www.researchgate.net/profile/Ronald_De_Boer3/publication/320417203_Towards_A_Theory_Of_Supply_Chain_And_Finance_Using_Evidence_From_A_Scottish_Focus_Group/links/59e4875fa6fdcc7154e11430/Towards-A-Theory-Of-Supply-Chain-And-Finance-Using-Evidence-From-A-Scottish-Focus-Group.pdf

 

 

WORKING CAPITAL MANAGEMENT IN SUPPLY CHAINS

Nataliia G. Silaeva

2016

https://dspace.spbu.ru/bitstream/11701/5194/1/Master_thesis_Silaeva_Nataliya.pdf

 

 

Blockchain-driven supply chain finance: Towards a conceptual framework from a buyer perspective

Yaghoob Omrana, Michael Henkeb, Roger Heinesc, Erik Hofmann

https://www.alexandria.unisg.ch/251095/1/WP29-Blockchain-driven%20supply%20chain%20finance%20Towards%20a%20conceptual%20framework%20from%20a%20buyer%20perspective.pdf

 

 

Selecting financial service providers for supply chains: How cross-functional collaboration can improve effectiveness and efficiency

Judith Martin

Prof. Dr. Erik Hofmann

https://www.alexandria.unisg.ch/242145/1/Paper%20Full%20Version_Selecting%20financial%20service%20providers%20for%20supply%20chains.pdf

 

 

Supply chain finance as a value added service offered by a lead logistics provider

Careaga Franco, V.G.
Award date:
2016

https://pure.tue.nl/ws/files/46923583/840401-1.pdf

 

 

B2B PAYMENTS, SUPPLY CHAIN FINANCE & E-INVOICING MARKET

Mirela Amariei
Tiberiu Avram
Ionela Barbuta
Simona Cristea
Sebastian Lupu
Mihaela Mihaila
Andreea Nita
Adriana Screpnic

2015

https://www.ciosummits.com/B2B_Payments_Supply_Chain_Finance__E-invoicing_Market_Guide_2015.pdf

 

 

Linking corporate strategy and supply chain management

Erik Hofmann

http://www.hadjarian.com/company/1860230.pdf

 

 

Concepts and Trade-Offs in Supply Chain Finance

Kasper van der Vliet

http://alexandria.tue.nl/extra2/792140.pdf

 

 

Supply Chain Finance as a Value Added Service offered by a Lead Logistics Provider

by
Victor Gerardo Careaga Franco

http://alexandria.tue.nl/extra2/afstversl/tm/Careaga_Franco_2016.pdf

 

Value Chain Finance: How Banks can Leverage Growth Opportunities for SME Banking Customers

Qamar Saleem, Global SME Banking and Value Chain Specialist, IFC

Dr. Eugenio Cavenaghi, Managing Director -Trade, Export & Supply Chain Finance, Banco Santander

https://www.smefinanceforum.org/sites/default/files/post/files/Value%20Chain%20Finance_Qamar%20Saleem.pdf

 

 

 

Supply-chain finance: The emergence of a new competitive landscape

McKinsey

https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Supply%20chain%20finance%20The%20emergence%20of%20a%20new%20competitive%20landscape/MoP22_Supply_chain_finance_Emergence_of_a_new_competitive_landscape_2015.ashx

 

 

Fintechs and the Financial Side of Global Value Chains— The Changing Trade-Financing Environment

IMF

2017

http://www.imf.org/external/pubs/ft/bop/2017/pdf/17-21.pdf

 

 

Global Supply Chain Management: Front and Center for Treasurers
Delivering Innovative Solutions that Integrate Financial and Physical Supply Chains

JP Morgan

https://www.jpmorgan.com/pdfdoc/jpmorgan/cash/pdf/global_supply_chain_front_and_center_for_treasurers

 

 

 

Supply Chain Finance

Aberdeen Group

2011

http://media.treasuryandrisk.com/treasuryandrisk/historical/whitepapers/Documents/SCF%20Gaining%20Control%200258-6833-RA-SCFinance-SP-10-NSP.pdf

 

 

 

Supply chain financing: Using cash-to-cash variables to strengthen the supply chain

Wesley S. Randall

M. Theodore Farris II

2009

https://www.researchgate.net/publication/235317652_Supply_chain_financing_Using_cash-to-cash_variables_to_strengthen_the_supply_chain

 

 

 

Supply Chain Finance: ANew Means to Support the Competitiveness and Resilience of Global Value Chains

Jean-François Lamoureux and Todd Evans

http://www.dfait-maeci.gc.ca/economist-economiste/assets/pdfs/research/TPR_2011_GVC/12_Lamoureux_and_Evans_e_FINAL.pdf

 

 

 

Maximising the value of supply chain finance

van der Vliet, K.; Reindorp, M.J.; Fransoo, J.C.

2013

https://pure.tue.nl/ws/files/3620999/387399093290135.pdf

 

 

 

The Interface of Operations and Finance in Global Supply Chains

by
Lima Zhao

2014

https://opus4.kobv.de/opus4-whu/files/179/Zhao_Lima_WHU_Diss_2014.pdf

 

 

 

Supply Chain Finance A conceptual framework to advance research

Kasper van der Vliet, Matthew J. Reindorp, Jan C. Fransoo
Beta Working Paper series 418

http://purl.tue.nl/23232338094103.pdf

 

 

COORDINATING WORKING CAPITAL MANAGEMENT MODEL IN COLLABORATIVE
SUPPLY CHAINS

A. Ivakina, N. Zenkevich

# 9 (E) – 2017

https://dspace.spbu.ru/bitstream/11701/8600/1/WP_9%28E%29-2017_Ivakina_Zenkevich.pdf

 

 

A conceptual model for supply chain finance for SMEs at operational level ‘An essay on the Supply Chain Finance paradigm ….

Jan H Jansen

2017

https://www.researchgate.net/profile/Jan_Jansen11/publication/316245913_A_conceptual_model_for_supply_chain_finance_for_SMEs_at_operational_level_’An_essay_on_the_Supply_Chain_Finance_paradigm_’_Vestnik_Chelyabinsk_State_University_Version_2_18_April_2017/links/5a17d84aaca272df0808ca79/A-conceptual-model-for-supply-chain-finance-for-SMEs-at-operational-level-An-essay-on-the-Supply-Chain-Finance-paradigm-Vestnik-Chelyabinsk-State-University-Version-2-18-April-2017.pdf

 

 

Cash Flow Management and Manufacturing Firm Financial Performance: A Longitudinal Perspective

James R. Kroes

Andrew S. Manikas

http://scholarworks.boisestate.edu/cgi/viewcontent.cgi?article=1040&context=itscm_facpubs

 

 

 

TOWARDS INTER-ORGANIZATIONAL WORKING CAPITAL MANAGEMENT

Sari Monto

2013

https://www.doria.fi/bitstream/handle/10024/90028/isbn9789522653840.pdf?sequence=2

 

 

 

THE CYCLE TIMES OF WORKING CAPITAL: FINANCIAL VALUE CHAIN ANALYSIS METHOD

Miia Pirttilä

2014

https://www.doria.fi/bitstream/handle/10024/102180/Pirttilä_A4.pdf?sequence=2

 

 

Impact of Cash Conversion Cycle on Working Capital through Profitability: Evidence from Cement Industry of Pakistan

Afaq Ahmed Khan1, Mohsin Ayaz2, Raja Muhammad Waseem3, Sardar Osama

Bin Haseeb Abbasi4, Moazzam Ijaz

2016

http://www.iosrjournals.org/iosr-jbm/papers/Vol18-issue3/Version-2/Q1803021124131.pdf

 

 

Cash Conversion Cycle and Firms’ Profitability – A Study of Listed Manufacturing Companies of Pakistan

1Raheem Anser, 2Qaisar Ali Malik

2013

https://pdfs.semanticscholar.org/d400/2a7cb44463d9b8d3b77e2b36e23466cde4ec.pdf

 

 

The Power of Supply Chain Finance

How companies can apply collaborative finance models in their supply chain to
mitigate risks and reduce costs

M. Steeman

https://www.windesheim.nl/~/media/files/windesheim/research-publications/thepowerofsupplychainfinance.pdf

 

 

Supply Chain Finance Payable and Receivable Solutions Guide

2012

JP Morgan

A Conceptual Model of Supply Chain Finance for SMEs at Operational Level

 Jan H Jansen

21 November 2017

 

https://www.researchgate.net/profile/Jan_Jansen11/publication/316245913_A_conceptual_model_for_supply_chain_finance_for_SMEs_at_operational_level_’An_essay_on_the_Supply_Chain_Finance_paradigm_’_Vestnik_Chelyabinsk_State_University_Version_2_18_April_2017/links/5a17d84aaca272df0808ca79/A-conceptual-model-for-supply-chain-finance-for-SMEs-at-operational-level-An-essay-on-the-Supply-Chain-Finance-paradigm-Vestnik-Chelyabinsk-State-University-Version-2-18-April-2017.pdf

 

 

Cash-to-cash: The new supply chain management metric

M Theodore Farris II; Paul D Hutchison

International Journal of Physical Distribution & Logistics Management; 2002

https://www.researchgate.net/profile/Paul_Hutchison/publication/235295065_Cash-to-Cash_The_New_Supply_Chain_Management_Metric/links/02e7e5312767de88df000000.pdf

 

 

 

Integrating financial and physical supply chains: the role of banks in enabling supply chain integration

Rhian Silvestro

Paola Lustrato

2012

 

https://www.researchgate.net/profile/Rhian_Silvestro/publication/263268792_Integrating_financial_and_physical_supply_chains_The_role_of_banks_in_enabling_supply_chain_integration/links/552f9c840cf21cb2faf005c0.pdf

 

 

 

Integration of Finance and Supply Chain: Emerging Frontier in Growing Economies

(A Case Study of Exporting Companies)

Muhammad Ahmar Saeed

Xiaonan Lv

 

http://www.diva-portal.org/smash/get/diva2:420165/FULLTEXT01.pdf

 

Research at the Interface of Finance, Operations, and Risk Management (iFORM): Recent Contributions and Future Directions

Volodymyr Babich

Panos Kouvelis

2017

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3054711

 

 

 

PROCEEDINGS

Interface of Finance, Operations, and Risk Management (iFORM) SIG

2011

https://pdfs.semanticscholar.org/e6e7/947ccbd42b1fe0e90f298ab96cfcef8f0448.pdf

 

 

 

Cash to Cash Cycle with a Supply Chain Perspective

Can Duman
Sawanee Sawathanon

2009

 

http://www.diva-portal.org/smash/get/diva2:221367/FULLTEXT01.pdf

 

DYNAMIC AND STATIC LIQUIDITY MEASURES IN WORKING CAPITAL STRATEGIES

Monika Bolek, PhD

 

http://eujournal.org/index.php/esj/article/viewFile/764/798

 

 

 

Does working capital management affect cost of capital?
A first empirical attempt to build up a theory for supply chain finance

Erik Hofmann, Judith Martin

2016

 

https://www.alexandria.unisg.ch/248595/1/Final%20paper_working%20capital%20management.pdf

 

 

 

Principle of Accounting System Dynamics – Modeling Corporate Financial Statements –

Kaoru Yamaguchi

 

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.615.6514&rep=rep1&type=pdf

 

 

 

Money and Macroeconomic Dynamics

Accounting System Dynamics Approach

Edition 3.2

 

Kaoru Yamaguchi Ph.D.

Japan Futures Research Center

 

http://muratopia.org/Yamaguchi/macrodynamics/Macro%20Dynamics.pdf

 

 

 

Working Capital Management Model in value chains

Timo Eskelinen

2014

 

http://www.doria.fi/bitstream/handle/10024/96733/Working%20Capital%20Management%20Model%20in%20value%20chains_Timo%20Eskelinen.pdf?sequence=2&isAllowed=y

 

 

 

STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

Global Supply Chain Finance Forum

2016

 

https://cdn.iccwbo.org/content/uploads/sites/3/2017/01/ICC-Standard-Definitions-for-Techniques-of-Supply-Chain-Finance-Global-SCF-Forum-2016.pdf

https://baft.org/docs/default-source/current-news/download-the-scf-definitions.pdf

 

 

IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

Pan Theo Große-Ruyken
Stephan M. Wagner
Wen-Fong Lee

Baltic Management Review

Volume 3 No 1

2008

 

 

 

Best Practices in Cash Flow Management and Reporting

Hans-Dieter Scheuermann

http://www.financepractitioner.com/cash-flow-management-best-practice/best-practices-in-cash-flow-management-and-reporting?full

Financial Supply Chain Management

 

Gantt Chart Simulation for Stock Flow Consistent Production Schedules

Gantt Chart Simulation for Stock Flow Consistent Production Schedules

 

I have knowledge of two software which do Gantt chart simulation for production scheduling.  These are used by top most companies in the world for production planning and scheduling now a days known as Supply Chain Management (SCM).

Production Schedules are stock flow consistent which means that starting inventories, and unused production of products result in cumulative inventory which is plotted for each of the product.

Production and Shipments (arrivals and dispatched) create Flows and Inventory levels indicate Stock level positions.

Gantt Chart simulators are excellent tools for operations management in plants.

The first Gantt chart was actually developed by Karol Adamiecki in Poland.  He called it a Harmonogram.  Henry Gantt in 1910 published first gantt chart which was later than publication by Karol Adamiecki.

These two charts below show Simulator window in which Gantt chart and inventory level plots are displayed.

Gantt Chart Simulator in Aspen Tech Plant Scheduler for Production Scheduling

active-guidance_10740930

 

Gantt Chart Simulator in Atlantic Decision Sciences Scheduler

Scheduling Board Single Chart

Key Sources for Research:

 

A Presentation by Chris Jones on Evolution of Graphical Production Scheduling Software

at the Cornell University Deptt of ORIE

 

 

 

Atlantic Decision Sciences

http://atlanticdecisionsciences.com

 

 

Aspen Technology

http://aspentech.com/products/aspen-plant-scheduler/

 

 

History of Gantt Chart

http://www.ganttchart.com/orgforwork.html

 

 

History of Production Scheduling

http://www.springer.com/cda/content/document/cda_downloaddocument/9780387331157-c1.pdf?SGWID=0-0-45-321351-p148129370

 

 

The harmonogram: an overlooked method of scheduling work.

Marsh, E. R. (1976).

Project Management Quarterly, 7(1), 21–25.

https://www.pmi.org/learning/library/harmonogram-overlooked-method-scheduling-work-5666

 

The Harmonogram of Karol Adamiecki

Edward R. Marsh

http://amj.aom.org/content/18/2/358

 

Karol Adamiecki

https://www.pocketbook.co.uk/blog/tag/karol-adamiecki/

Production Chain Length and Boundary Crossings in Global Value Chains

Production Chain Length and Boundary Crossings in Global Value Chains

 

From Structure and length of value chains

In a value chain, value is added in sequential production stages and is carried forward from one producer to the next in the form of intermediate inputs. Value chains driven by the fragmentation of production are not an entirely new economic phenomenon, but the increasing reliance on imported intermediate inputs makes value chains global.

According to a 2013 report by the OECD, WTO and UNCTAD for the G-20 Leaders Summit, “Value chains have become a dominant feature of the world economy” (OECD et al., 2013).

Obviously, this dominant feature of the world economy needs measuring and analyzing. Policy-relevant questions include, but are not limited to:

  • what is the contribution of global value chains to economy GDP and employment? how long and complex are value chains?
  • what is the involvement and position of individual industries in global value chains? do multiple border crossings in global value chains really matter?

These and related questions generated a considerable amount of investigations proposing new measures of exports and production to account for global value chains. Some of those were designed to re-calculate trade  flows in value added terms, whereas other provided an approximation of the average length of production process.

A relatively new stream of research focuses on a deep decomposition of value added or final demand ( rather than exports or imports ) into components with varied paths along global value chains and measurements of the length of the related production processes. Consider, for example, a petrochemical plant that generates some value added equal to its output less all intermediate inputs used. We would be interested to know which part of this value added, embodied in the petrochemicals, is used entirely within the domestic economy and which part is exported.

We would also inquire how much of the latter satisfies final demand in partner countries and how much is further used in production and, perhaps, in exports to third countries and so on. We would be interested, in particular, in counting the number of production stages the value added in these petrochemicals passes along the chain before reaching its final user.

 

From Structure and length of value chains

APL

 

 

From Structure and length of value chains

A natural question is whether this method can be applied to the real economy with myriads of products, industries and dozens of partner countries? It can surely be applied if the data on inter-industry transactions are organized in the form of input-output accounts, and the computations are performed in block matrix environment. In fact, the measurement of the number of production stages or the length of production chains has attracted the interest of many input-output economists. The idea of simultaneously counting and weighting the number of inter-industry transactions was formalized by Dietzenbacher et al. (2005). Their “average propagation length” (APL) is the average number of steps it takes an exogenous change in one industry to affect the value of production in another industry. It is the APL concept on which we build the count of the number of production stages from the petrochemical plant to its consumers in our simplified example above. The only difference is that Dietzenbacher et al. (2005), and many authors in the follow-up studies, neglect the completion stage. First applications of the APL concept to measure the length of cross-border production chains appear in Dietzenbacher and Romero (2007) and Inomata (2008), though Oosterhaven and Bouwmeester (2013) warn that the APL should only be used to compare pure interindustry linkages and not to compare different economies or different industries.

Fally (2011, 2012) proposes the recursive definitions of two indices that quantify the “average number of embodied production stages” and the “distance to final demand”.  Miller and Temurshoev (2015), by analogy with Antras et al. (2012), use the logic of the APL and derive the measures of “output upstreamness” and “input downstreamness” that indicate industry relative position with respect to the nal users of outputs and initial producers of inputs. They show that their measures are mathematically equivalent to those of Fally and the well known indicators of, respectively, total forward linkages and total backward linkages. Fally (2012) indicates that the average number of embodied production stages may be split to account for the stages taking place within the domestic economy and abroad. This approach was implemented in OECD (2012), De Backer and Miroudot (2013) and elaborated in Miroudot and Nordstrom (2015).

Ye et al. (2015) generalize previous length and distance indices and propose a consistent accounting system to measure the distance in production networks between producers and consumers at the country, industry and product levels from different economic perspectives. Their “value added propagation length” may be shown to be equal to Fally’s embodied production stages and Miller & Temurshoev’s input downstreamness when aggregated across producing industries.

Finally, Wang et al. (2016) develop a technique of additive decomposition of the average production length. Therefore, they are able to break the value chain into various components and measure the length of production along each component. Their production length index system includes indicators of the average number of domestic, cross-border and foreign production stages. They also propose new participation and production line position indices to clearly identify where a country or industry is in global value chains. Importantly, Wang et al. (2016) clearly distinguish between average production length and average propagation length, and between shallow and deep global value chains.

This paper builds on the technique and ideas of Wang et al. (2016) and the derivation of the weighted average number of border crossings by Muradov (2016). It re-invents a holistic system of analytical indicators of structure and length of value chains. As in Wang et al. (2016), global value chains are treated here within a wider economy context and are juxtaposed with domestic value chains. This enables developing new indices of orientation towards global value chains. The novel deliverables of this paper are believed to include the following. First, all measurements are developed with respect to output rather than value added or final product  flows. This is superior for interpretation and visualization purposes because a directly observable economic variable ( output ) is decomposed in both directions, forwards to the destination and backwards to the origin of value chain. It is also shown that at a disaggregate country-industry level, the measurement of production length is equivalent with respect to value added and output. Second, the decomposition of output builds on a factorization of the Leontief and Ghosh inverse matrices that allows for an explicit count of production stages within each detailed component. Third, the system builds on a refined classication of production stages, including final and primary production stages that are often neglected in similar studies. Fourth, the paper re-designs the average production line position index and proposes new indices of orientation towards global value chains that, hopefully, avoid overemphasizing the length of some unimportant cross-border value chains. Fifth, a new chart is proposed for the visualization of both structure and length of value chains. The chart provides an intuitive graphical interpretation of the GVC participation, orientation and position indices.

It is also worth noting that both Wang et al. (2016) and this paper propose similar methods to estimate the intensity of GVC-related production in partner countries and across borders. This is not possible with previous decomposition systems without explicitly counting the average number of production stages and border crossings.

 

 Key Terms:

  • Average Propagation Length
  • National Boundaries
  • Networks
  • Value Chains
  • Supply Chains
  • Upstreamness
  • Downstreamness
  • Structure of Chains
  • Smile Curves
  • Vertical Specialization
  • Fragmentation of Production
  • Shock Amplifiers
  • Shock Absorbers
  • Production Sharing
  • World Input Output Chains
  • WIOD
  • Counting Boundary Crossings
  • Production Staging
  • Slicing Up Value Chains
  • Mapping Value Chains
  • Geography of Value Chains
  • Spatial Economy

Key Sources of Research:

 

 

Characterizing Global Value Chains

Zhi Wang

Shang-Jin Wei

Xinding Yu and Kunfu Zhu

GLOBAL VALUE CHAIN DEVELOPMENT REPORT 2016
Background Paper Conference

Beijing, 17-18 March 2016

https://schar.gmu.edu/sites/default/files/faculty-staff/cv/Characterizing_Global_Value_Chains.pdf

 

 

The Great Trade Collapse: Shock Amplifiers and Absorbers in Global Value Chains

Zhengqi Pan

2016

http://gpn.nus.edu.sg/file/Zhengqi%20Pan_GPN2016_008.pdf

 

 

CHARACTERIZING GLOBAL VALUE CHAINS:PRODUCTION LENGTH AND UPSTREAMNESS

Zhi Wang
Shang-Jin Wei
Xinding Yu
Kunfu Zhu
March 2017

http://www.nber.org/papers/w23261.pdf

 

 

 

Characterizing Global Value Chains

Zhi Wang
Shang-Jin Wei,
Xinding Yu and Kunfu Zhu

September 2016

http://cepr.org/sites/default/files/Wang,%20Zhi.pdf

https://www.gtap.agecon.purdue.edu/resources/download/8178.pdf

 

 

MEASURING AND ANALYZING THE IMPACT OF GVCs ON ECONOMIC DEVELOPMENT

GLOBAL VALUE CHAIN DEVELOPMENT REPORT 2017

International Bank for Reconstruction and Development/The World Bank
2017

https://www.brookings.edu/wp-content/uploads/2017/07/tcgp-17-01-china-gvcs-complete-for-web-0707.pdf

 

 

 

Global Value Chains

http://www.coris.uniroma1.it/sites/default/files/Lecture%20Global%20Value%20Chains.pdf

 

 

MAPPING GLOBAL VALUE CHAINS

4-5 December 2012
The OECD Conference Centre, Paris

https://www.oecd.org/dac/aft/MappingGlobalValueChains_web_usb.pdf

 

 

 

Structure and length of value chains

Kirill Muradov

http://www.gws-os.com/downloads/ioworkshop/IO-Workshop-2017_Muradov_abstract.pdf

http://gws-os.com/downloads/ioworkshop/IO-Workshop-2017_Muradov_ppt.pdf

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3054155

 

Production Staging: Measurement and Facts

Thibault Fally

August 2012

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.717.7092&rep=rep1&type=pdf

 

 

 

TRACING VALUE-ADDED AND DOUBLE COUNTING IN GROSS EXPORTS

Robert Koopman
Zhi Wang
Shang-Jin Wei

November 2012

https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/5852/w18579.pdf

 

 

 

GIVE CREDIT WHERE CREDIT IS DUE: TRACING VALUE ADDED IN GLOBAL PRODUCTION CHAINS

Robert Koopman
William Powers
Zhi Wang
Shang-Jin Wei

September 2010

https://www.bea.gov/about/pdf/NBER%20working%20paper_1.pdf

 

 

 

Measuring the Upstreamness of Production and Trade Flows

By Pol Antràs, Davin Chor, Thibault Fally, and Russell Hillberry

2012

http://scholar.harvard.edu/files/antras/files/acfh_published.pdf

http://www.nber.org/papers/w17819.pdf

 

 

 

Using Average Propagation Lengths to Identify Production Chains in the Andalusian Economy

 

https://idus.us.es/xmlui/bitstream/handle/11441/17372/file_1.pdf?sequence=1&isAllowed=y

 

 

Production Chains in an Interregional Framework: Identification by Means of Average Propagation Lengths

 2007

 

http://journals.sagepub.com/doi/abs/10.1177/0160017607305366

 

 

 

Vertical Integration and Input Flows

Enghin Atalay

Ali Hortaçsu

Chad Syverson

2013

http://faculty.chicagobooth.edu/chad.syverson/research/verticalownership.pdf

 

 

 

The Rise of Vertical Specialization Trade

Benjamin Bridgman

January 2010

https://www.bea.gov/papers/pdf/the_rise_of_vertical_specialization_trade_bridgman_benjamin.pdf

 

 

 

THE NATURE AND GROWTH OF VERTICAL SPECIALIZATION IN WORLD TRADE

David Hummels
Jun Ishii
Kei-Mu Yi*

March 1999

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.475.3874&rep=rep1&type=pdf

 

 

Accounting for Intermediates: Production Sharing and Trade in Value Added

Robert C. Johnson

Guillermo Noguera

First Draft: July 2008
This Draft: June 2009

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.211.9707&rep=rep1&type=pdf

First Draft: July 2008
This Draft: May 2011

http://siteresources.worldbank.org/INTRANETTRADE/Resources/Internal-Training/287823-1256848879189/6526508-1283456658475/7370147-1308070299728/7997263-1308070314933/PAPER_4_Johnson_Noguera.pdf

 

 

 

FRAGMENTATION AND TRADE IN VALUE ADDED OVER FOUR DECADES

Robert C. Johnson
Guillermo Noguera

June 2012

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.679.6227&rep=rep1&type=pdf

 

 

 

Can Vertical Specialization Explain The Growth of World Trade

Kei-Mu Yi

1999

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr96.pdf

 

 

CAN MULTI-STAGE PRODUCTION EXPLAIN THE HOME BIAS IN TRADE?

Kei-Mu Yi

Federal Reserve Bank of Philadelphia
June 2008
This revision: November 2008

https://www.philadelphiafed.org/-/media/research-and-data/publications/working-papers/2008/wp08-12r.pdf?la=en

 

 

 

Global Value Chains: New Evidence for North Africa

D. Del Prete, G. Giovannetti, E. Marvasi

2016

https://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp07_2016.pdf

 

 

 

Slicing Up Global Value Chains

Marcel Timmera Abdul Erumbana Bart Losa
Robert Stehrerb Gaaitzen de Vriesa

Presentation at International Conference on Global Value Chains and
Structural Adjustments,

Tsinghua University, June 25, 2013

http://www.rug.nl/ggdc/docs/session4_timmer.pdf

 

 

 

On the Geography of Global Value Chains

Pol Antràs

Alonso de Gortari

May 24, 2017

https://scholar.harvard.edu/files/antras/files/gvc_ag_latest_draft.pdf

 

 

Counting Borders in Global Value Chains

Posted: 12 Jul 2016

Last revised: 29 Aug 2016

Kirill Muradov

 

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2808130

 

 

Determinants of country positioning in global value chains

Kirill Muradov

May 2017

https://www.iioa.org/conferences/25th/papers/files/2932_20170627121_Muradov2017_countrypositioninGVC_1.1.pdf

 

 

THE CONSTRUCTION OF WORLD INPUT–OUTPUT TABLES IN THE WIOD PROJECT

ERIK DIETZENBACHERa*, BART LOSa, ROBERT STEHRERb, MARCEL TIMMERa and GAAITZEN DE VRIES

2013

 

https://unstats.un.org/unsd/trade/events/2014/mexico/documents/session6/WIOD%20construction.pdf

 

 

 

 

On the fragmentation of production in the us

Thibault Fally

July 2011

http://www.etsg.org/ETSG2011/Papers/Fally.pdf

http://voxeu.org/article/has-production-become-more-fragmented-international-vs-domestic-perspectives

A New Measurement for International Fragmentation of the Production Process: An International Input-Output Approach

Inomata, Satoshi

http://www.ide.go.jp/English/Publish/Download/Dp/175.html

Output Upstreamness and Input Downstreamness of Industries/Countries in World Production

Ronald E. Miller

Umed Temurshoev

 

Date Written: July 9, 2015

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2700845

Input-Output Calculus of International Trade

Kirill Muradov

 

Date Written: June 1, 2015

Posted: 9 Sep 2015 Last revised: 5 Oct 2015

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2643098

 

 

 

 Made in the World?

S. Miroudot

Hakan Nordstrom

Date Written: September 2015

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2658562

 

 

 

The Average Propagation Length Conflicting Macro, Intra-industry, and Interindustry Conclusions

October 2013
Jan Oosterhaven

Maaike C. Bouwmeester

https://www.researchgate.net/publication/258142955_The_Average_Propagation_Length_Conflicting_Macro_Intra-industry_and_Interindustry_Conclusions

 

 

 

Accounting Relations in Bilateral Value Added Trade

Robert Stehrer

May 2013

https://wiiw.ac.at/accounting-relations-in-bilateral-value-added-trade-dlp-3021.pdf

Whither Panama? Constructing a Consistent and Balanced World SUT System including International Trade and Transport Margins

Robert Stehrer

https://wiiw.ac.at/whither-panama-constructing-a-consistent-and-balanced-world-sut-system-including-international-trade-and-transport-margins-dlp-2905.pdf

https://wiiw.ac.at/p-2905.html

Quantifying International Production Sharing at the Bilateral and Sector Levels

Zhi Wang, Shang-Jin Wei, Kunfu Zhu

NBER Working Paper No. 19677
Issued in November 2013, Revised in March 2014

http://www.nber.org/papers/w19677

Measuring Smile Curves in Global Value Chains

Ming YE, Bo MENG , and Shang-jin WEI

August 2015

http://www.ide.go.jp/English/Publish/Download/Dp/530.html

 

 

 

 FOLLOW THE VALUE ADDED: BILATERAL GROSS EXPORT ACCOUNTING

by Alessandro Borin and Michele Mancini

2015

 

http://www.bancaditalia.it/pubblicazioni/temi-discussione/2015/2015-1026/en_tema_1026.pdf

Intra Industry Trade and International Production and Distribution Networks

Intra Industry Trade and International Production and Distribution Networks

 

Inter Industry Trade is known as One way Trade.

Intra Industry Trade is known as Two way Trade.

 

Intra Industry Trade (IIT)

  • Can be Intra Firm or Inter Firm (Arms’ Length)
  • Can be Vertical or Horizontal (VIIT and HIIT)

Intra Industry Trade is measured using G-L Index among other indices.

Import and Export of Parts and Components (Intermediate Goods) causes measurement issues of IIT.

 

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

Intra-industry trade is defined as the simultaneous export and import of products, which belong to the same statistical product category. According to Kol and Rayment (1989), three types of bilateral trade flows may occur between countries: inter-industry trade, horizontal IIT and vertical IIT. Historically, the international trade between countries has been inter-industry form, which is described as the exchange of products belonging to different industries. Traditional trade models, such as Heckscher-Ohlin model or Ricardian model, have tried to explain this type of trade based on comparative advantage in relative technology and factor endowments. However, a significant portion of the world trade over the last three decades took the form of the intra-industry trade rather than inter-industry trade. As a result, the traditional trade models has been considered to be inadequate in explaining this new trade pattern because in these models there is no reason for developed countries to trade in similar but slightly differentiated goods.

 

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

Horizontal IIT has been defined as the exchange of similar goods that are similar in terms of quality but have different characteristics or attributes. The models developed by Dixit and Stiglitz (1977), Lancaster (1980), Krugman (1980, 1981), Helpman (1981), and Helpman and Krugman (1985) explain horizontal IIT by emphasizing the importance of economies of scale, product differentiation, and demand for variety within the setting of monopolistic competition type markets. In these models, IIT in horizontally differentiated goods should be greater, the greater the difference in income differences and relative factor endowments between the trading partners.

 

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

In contrast, vertical IIT represents trade in similar products of different qualities but they are no longer the same in terms unit production costs and factor intensities.5 Falvey (1981) and Falvey and Kierzkowski (1987) have shown that the IIT in vertically differentiated goods occurs because of factor endowment differences across countries. In particular, Falvey and Kierzkowski (1987) suggest that the amount of capital relative to labor used in the production of vertically differentiated good indicates the quality of good. As a consequence, in an open economy, higher- quality products are produced in capital abundant countries whereas lower-quality products are produced in labor abundant countries. This will give rise to intra-industry trade in vertically differentiated goods: the capital abundant country exports higher-quality varieties and labor abundant country exports lower-quality products. The models of vertical IIT predict that the share of vertical IIT will increase as countries’ income and factor endowments diverge.

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

Various ways of calculating intra-industry trade have been proposed in the empirical literature, including the Balassa Index, the Grubel-Lloyd (G-L) index, the Aquino index. The most widely used method for computing the IIT is developed by Grubel and Lloyd (1971). However, beside aggregation bias, the traditional G-L index has one major problem often cited in the empirical literature. The unadjusted G-L index is negatively correlated with a large overall trade imbalance. With national trade balances, the level of IIT in a country will be clearly underestimated. To avoid this problem, Grubel and Lloyd (1975) proposed another method to adjust the index by using the relative size of exports and imports of a particular good within an industry as weights.

 

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

iit

 

From Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

IIT2IIT3IIT4

 

From:  World Trade Flows Characterization: Unit Values, Trade Types and Price Ranges

 

IIT5

 

 

Key Terms:

  • Intra Industry Trade
  • Inter Industry Trade
  • Horizontal IIT
  • Vertical IIT
  • Ricardo’s Theory of Comparative Advantage
  • Factor Inputs
  • Factor Endowments
  • Factor Prices
  • Heckscher-Ohlin Model of Trade
  • Stolper-Samuelson Theorem
  • Grubel – Lloyd Index
  • Fontagné and Freudenberg index (FF)
  • New Economic Geography (NEG)
  • Spatial Economy
  • UN COMTRADE
  • SITC Codes
  • Balassa Index
  • Acquino Index
  • Bilateral Trade Flows

 

Please see my related posts:

Understanding Trade in Intermediate Goods

Trends in Intra Firm Trade of USA

FDI vs Outsourcing: Extending Boundaries or Extending Network Chains of Firms

Relational Turn in Economic Geography

Understanding Global Value Chains – G20/OECD/WB Initiative

 

 

Key Sources of Research:

 

 

International Production and Distribution Networks in East Asia:  Eighteen Facts, Mechanics, and Policy Implications

Fukunari Kimura

2006

http://www1.doshisha.ac.jp/~ccas/eng/Eseminars/e2007-11b.pdf

 

 

 

The Formation of International Production and Distribution Networks in East Asia

 

Mitsuyo Ando and Fukunari Kimura

 

http://www.nber.org/chapters/c0194.pdf

 

 

“The mechanics of production networks in Southeast Asia: the fragmentation theory approach”

Fukunari Kimura

July 2007

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.600.7481&rep=rep1&type=pdf

 

 

 

“Fragmentation in East Asia: Further Evidence”

May 2006

Mitsuyo Ando

Fukunari Kimura

http://venus.unive.it/mvolpe/Articolo%204.pdf

 

 

 

Modern International Production and Distribution Networks: the Role of Global Value Chains

Fukunari Kimura

2016

https://www.cepchile.cl/cep/site/artic/20161006/asocfile/20161006141226/presentation_fukunari_kimura.pdf

 

 

 

Two-dimensional Fragmentation in East Asia: Conceptual Framework and Empirics

Fukunari Kimura and Mitsuyo Ando

http://www.computer-services.e.u-tokyo.ac.jp/p/seido/output/Ishikawa/046.pdf

 

 

 

Deepening and Widening of Production Networks in ASEAN

Ayako Obashi

Fukunari Kimura

2016

http://www.eria.org/ERIA-DP-2016-09.pdf

 

Global production sharing and trade patterns in East Asia

Prema-chandra Athukorala

June 2013

http://www.waseda.jp/gsaps/eaui/educational_program/PDF_2/TU_VIROT,%20Ali_Reading2_Global%20Production%20Sharing%20and%20Trade%20Patterns%20in%20East%20Asia.pdf

 

 

 

PRODUCTION SHARING IN EAST ASIA: CHINA’S POSITION, TRADE PATTERN AND TECHNOLOGY UPGRADING

Laike Yang

http://unctad.org/en/PublicationChapters/gdsmdp20152yang_en.pdf

 

 

 

 

International Production Networks:  Contributions of Economics to Policy Making

Fukunari Kimura

2016

https://www.jstage.jst.go.jp/article/internationaleconomy/19/0/19_ie2016.03.fk/_pdf

 

 

 

 

Production networks in East Asia: What we know so far

Fukunari Kimura and Ayako Obashi

No. 320
November 2011

https://www.econstor.eu/bitstream/10419/53625/1/67543923X.pdf

 

Structure and Determinants of Intra-Industry Trade in the U.S. Auto-Industry

Kemal Turkcan and Aysegul Ates

2010

 

http://www2.southeastern.edu/orgs/econjournal/index_files/JIGES%20DECEMBER%202009%20TURKCAN%203-10-2010%20Turkcan_Ates_JIGES.pdf

 

 

 

Vertical Intra-Industry Trade: An Empirical Examination of the U.S. Auto-Parts Industry

Kemal TÜRKCAN and Ayşegül ATEŞ

(This version October 2008)

 

http://www.etsg.org/ETSG2008/Papers/Turkcan.pdf

 

 

 

Intra-industry trade, fragmentation and export margins: An empirical examination of sub-regional international trade

Yushi Yoshida

 

https://www.iseg.ulisboa.pt/aquila/getFile.do?method=getFile&fileId=501284

 

 

A Practical Guide to Trade Policy Analysis

WTO

https://www.wto.org/english/res_e/publications_e/wto_unctad12_e.pdf

 

 

 

Intra-Industry Trade between Japan and European Countries: a Closer Look at the Quality Gap in VIIT

Yushi Yoshida, Nuno Carlos Leitão and Horácio Faustino

http://pascal.iseg.utl.pt/~depeco/wp/wp532008.pdf

 

 

Evolving pattern of intra-industry trade specialization of the new Member States (NMS) of the EU: the case of automotive industry

Elżbieta Kawecka-Wyrzykowska

2008

 

http://ec.europa.eu/economy_finance/publications/pages/publication14289_en.pdf

 

 

VERTICAL AND HORIZONTAL INTRA-INDUSTRY TRADE BETWEEN THE U.S. AND NAFTA PARTNERS

2009

 

http://www.scielo.cl/pdf/rae/v24n1/art02.pdf

 

 

 

Globalizing Production Structure and Intra-Industry Trade: The Case of Turkey

Emine Kılavuz

Hatice Erkekoğlu

Betül Altay Topcu

2013

https://www.econjournals.com/index.php/ijefi/article/viewFile/563/pdf

 

 

 

On the Measurement of Vertical and Horizontal Intra-Industry Trade: A Geometric Exposition

A.K.M. Azhar Robert J.R. Elliott

http://www.ibrarian.net/navon/paper/On_the_Measurement_of_Vertical_and_Horizontal_Int.pdf?paperid=1018522

 

 

 

 Determinants of United States’ Vertical and Horizontal Intra-Industry Trade

2013

 

https://espace.curtin.edu.au/bitstream/handle/20.500.11937/41590/197560_110710_GEJ_2013.pdf?sequence=2

 

 

 

World Trade Flows Characterization: Unit Values, Trade Types and Price Ranges

Charlotte Emlinger & Sophie Piton

2014

http://www.cepii.fr/PDF_PUB/wp/2014/wp2014-26.pdf