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Economic integration agreements and production fragmentation: evidence on the extensive margin

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  • Juan Blyde
  • Alejandro Graziano
  • Christian Volpe Martincus

Abstract

In this article we present evidence on the impact of economic integration agreements (EIAs) on production fragmentation based on a direct measure of offshoring: the number of vertically integrated foreign subsidiaries located in partner countries. We find that EIAs favour the formation of cross-border production networks. Further, this effect is stronger when agreements are deeper.

Suggested Citation

  • Juan Blyde & Alejandro Graziano & Christian Volpe Martincus, 2015. "Economic integration agreements and production fragmentation: evidence on the extensive margin," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 835-842, July.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:10:p:835-842
    DOI: 10.1080/13504851.2014.980569
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    References listed on IDEAS

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    1. Eduardo Levy Yeyati & Christian Daude & Ernesto Stein, 2003. "Regional Integration and the Location of FDI," Business School Working Papers doce, Universidad Torcuato Di Tella.
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    Cited by:

    1. Itakura, Ken & Lee, Hiro, 2019. "Estimating the Effects of the CPTPP and RCEP in a General Equilibrium Framework with Global Value Chains," Conference papers 333031, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Maria V. Sokolova, 2016. "Exchange Rates, International Trade and Growth: Re-Evaluation of Undervaluation," IHEID Working Papers 05-2016, Economics Section, The Graduate Institute of International Studies.
    3. Essotanam Mamba & Afi Balaki, 2023. "Deep regional trade agreement as a driver for global value chains in Africa: the case of ECOWAS region," Economic Change and Restructuring, Springer, vol. 56(3), pages 2037-2068, June.
    4. Maria V. Sokolova, 2016. "Trade Re(Im)Balanced: The Role of Regional Trade Agreements," IHEID Working Papers 06-2016, Economics Section, The Graduate Institute of International Studies.
    5. Gnutzmann-Mkrtchyan, Arevik & Henn, Christian, 2018. "Peeling away the layers: Impacts of durable tariff elimination," Journal of International Economics, Elsevier, vol. 115(C), pages 259-276.
    6. Monika Sztajerowska, 2021. "International Investment Agreements, Double-Taxation Treaties and Multinational Activity: The (Heterogeneous) Effects of Binding," PSE Working Papers halshs-03265057, HAL.
    7. Kwabena Nkansah & Paul Owusu Takyi & Daniel Sakyi & Frank Adusah-Poku, 2022. "Economic Integration Agreements and Export Survival in Ghana," Journal of African Trade, Springer, vol. 9(1), pages 1-22, December.
    8. Henn, Christian & Gnutzmann-Mkrtchyan, Arevik, 2015. "The layers of the IT Agreement's trade impact," WTO Staff Working Papers ERSD-2015-01, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Sanjeev Vasudevan & M. Suresh Babu, 2021. "Global production sharing and trade effects: an analysis of Eurasian Economic Union," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(4), pages 633-665, December.
    10. Maria Borga & Perla Ibarlucea Flores & Monika Sztajerowska, 2020. "Drivers of divestment decisions of multinational enterprises - A cross-country firm-level perspective," OECD Working Papers on International Investment 2019/03, OECD Publishing.
    11. Monika Sztajerowska, 2021. "International Investment Agreements, Double-Taxation Treaties and Multinational Activity: The (Heterogeneous) Effects of Binding," Working Papers halshs-03265057, HAL.
    12. Juan S. Blyde & Christian Volpe Martincus & Danielken Molina, 2014. "Fábricas sincronizadas: América Latina y el Caribe en la era de las Cadenas Globales de Valor," IDB Publications (Books), Inter-American Development Bank, number 86755 edited by Juan S. Blyde, February.
    13. Kemal Türkcan & Socrates Kraido Majune, 2022. "Logistics infrastructure and export survival in European Union countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 509-535, May.

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