The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition

doi:10.1016/j.omega.2022.102612

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	The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition
	Feng, Pingping 1; Zhou, Xiaoyang 2,3; Zhang, Ding 4; Chen, Zhaobo 5; Wang, Shouyang 3
	2022-06-01
发表期刊	OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
ISSN	0305-0483
卷号	109 页码:18
摘要	In the context of globalization, cross-border transactions are growing. Trade policies essentially strike the global supply chain networks. They not only change product flows but may also disrupt some chains. To reveal how trade policies, including tariffs, quotas, and subsidies, affect the global supply chain equi-librium, this study first decomposes the supply chain network into several product-market chains (PM chains) according to the product flows and the directed market. Second, to characterize the inter-chain competition under the Cournot-Nash competition, we establish an optimization model for each PM chain and provide the equilibrium conditions by using variational inequality theory. Third, we propose the qual-itative properties of the equilibrium and solve the model using the Euler algorithm. Finally, to analyze the influence of different trade policies imposed at different stages, we conduct several numerical examples based on a network that is close to reality. We figure out the threshold when one chain is disrupted by the trade policy. PM chain disruption reconstructs the network and generates a new equilibrium. It explains the appearance of inflection points when analyzing the policies' effects. Here we summarize the major impacts of trade policies before network reconstruction. All three trade policies imposed on the supply side increase the competitive advantage of domestic raw material suppliers, but they hurt do-mestic final product producers in the studied network. On the other hand, these trade policies imposed on the demand side benefit the domestic final product producer while hurting the foreign final product producer. The effects of tariff/quota and subsidy imposed on the demand side have the opposite effects on raw material suppliers: the tariff/quota decreases while the subsidy increases the output of the raw material suppliers. We consider three extensions with the adjusted network structures and partially sub-stitutable products to demonstrate the wide applicability of the proposed approach. This work contributes to the literature by providing a framework of modeling to investigate inter-chain competition in a global supply network in the presence of trade policies. (c) 2022 Elsevier Ltd. All rights reserved.
关键词	Inter-chain competition Trade policy Product-market chain Cournot-Nash equilibrium
DOI	10.1016/j.omega.2022.102612
收录类别	SCI
语种	英语
资助项目	National Natural Science Foundation of China[71901170] ; National Natural Science Foundation of China[71871175] ; National Social Science Foundation of China[19BGL259] ; Shaanxi Province Innovative Talents Promotion Plan-Youth Science and Technology Nova Project[2019KJXX-031] ; China Postdoctoral Science Foundation[2018M640188] ; Fundamental Research Funds for the Central Universities[RW210103]
WOS研究方向	Business & Economics ; Operations Research & Management Science
WOS类目	Management ; Operations Research & Management Science
WOS记录号	WOS:000793288000001
出版者	PERGAMON-ELSEVIER SCIENCE LTD
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/61295
专题	中国科学院数学与系统科学研究院
通讯作者	Zhou, Xiaoyang
作者单位	1.Xidian Univ, Sch Econ & Management, Xian 710126, Peoples R China 2.Xi An Jiao Tong Univ, Sch Management, Xian 710049, Peoples R China 3.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 4.SUNY Coll Oswego, Sch Business, Oswego, NY 13126 USA 5.Taiyuan Univ Sci & Technol, Coll Econ & Management, Taiyuan 030024, Peoples R China
推荐引用方式 GB/T 7714	Feng, Pingping,Zhou, Xiaoyang,Zhang, Ding,et al. The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition[J]. OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE,2022,109:18.
APA	Feng, Pingping,Zhou, Xiaoyang,Zhang, Ding,Chen, Zhaobo,&Wang, Shouyang.(2022).The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition.OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE,109,18.
MLA	Feng, Pingping,et al."The impact of trade policy on global supply chain network equilibrium: A new perspective of product-market chain competition".OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE 109(2022):18.