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Due to international fragmentation, production increasingly occurs in global supply chains (GSC). The common belief is that this leads to more specialization, which implies more concentration of imports and exports over time. In this paper, we empirically test this hypothesis by analysing the geographical and sectoral concentration of GSC over the period 1995–2011. We adapt the traditional Herfindahl's concentration indexes to a multi-regional input–output framework. Taking the information on intersectoral and interregional linkages into full account gives the concentration indexes of GSC. The indexes are at different aggregation levels, which enables us to examine both geographical and sectoral concentration patterns. After that, we analyse the effect a country's geographical and sectoral concentration on its gross domestic product (GDP) per capita. Our findings are: an increase of geographical and sectoral concentration of GSC from 1995 to 2011; a growing role in global production chains played by China and other Asian countries; less concentration for European Union countries; a significant positive effect of geographical concentration on GDP per capita; and a significant negative effect of sectoral concentration. [ABSTRACT FROM AUTHOR]

Much attention has been paid to burden shifting of CO2 emissions from developed regions to developing regions through trade. However, less discussed is that trade also acts as a mechanism enabling wealthy consumers to shift water quantity and quality stress to their trading partners. In this study, we investigate how Shanghai, the largest megacity in China, draws water resources from all over China and outsources its pollution through virtual quantity and quality water flows associated with trade. The results show that Shanghai's consumption of goods and services in 2007 led to 11.6 billion m3 of freshwater consumption, 796 thousand tons of COD, and 16.2 thousand tons of NH3-N in discharged wastewater. Of this, 79% of freshwater consumption, 82.9% of COD and 82.5% of NH3-N occurred in other Chinese Provinces which provide goods and services to Shanghai. Thirteen Provinces with severe and extreme water quantity stress accounted for 60% of net virtual water import to Shanghai, while 19 Provinces experiencing water quality stress endured 79% of net COD outsourcing and 75.5% of net NH3-N outsourcing from Shanghai. In accordance with the three 'redlines' recently put forward by the Chinese central government to control water pollution and cap total water use in all provinces, we suggest that Shanghai should share its responsibility for reducing water quantity and quality stress in its trading partners through taking measures at provincial, industrial, and consumer levels. In the meantime, Shanghai needs to enhance demand side management by promoting low water intensity consumption. [ABSTRACT FROM AUTHOR]