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Globalization and Country-Specific Service Links

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Author Info

  • Stephen S. Golub
  • Ronald W. Jones
  • Henryk Kierzkowski
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    Abstract

    The Jones-Kierzkowski model of global fragmentation of production draws attention to the efficiency of 'service links' connecting 'production blocks' in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate. Mobile factors of production, most prominently foreign direct investment (FDI), can shop around for countries with the most functional and inexpensive service links along with low labor costs. Those countries with favorable business climates and well-functioning service links are able to attract FDI and other mobile inputs. We provide cross-sectional evidence that successful exporters of manufactures, notably in East Asia, have relatively favorable service links.

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    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/17487870701272827&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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    Bibliographic Info

    Article provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 10 (2007)
    Issue (Month): 2 ()
    Pages: 63-88

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    Handle: RePEc:taf:jecprf:v:10:y:2007:i:2:p:63-88

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    Related research

    Keywords: Globalization; manufacturing; outsourcing; export-led growth; foreign direct investment footloose factors; fragmentation;

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    Cited by:
    1. Peter Debaere & Holger Görg & Horst Raff, 2013. "Greasing the wheels of international commerce: how services facilitate firms' international sourcing," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 78-102, February.
    2. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    3. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    4. Henryk Kierzkowski & Lurong Chen, 2007. "Outsourcing and Trade Imbalances: The U.S: - China Case," DEGIT Conference Papers c012_003, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. Götz Zeddies, 2007. "Determinants of International Fragmentation of Production in the European Union," IWH Discussion Papers 15, Halle Institute for Economic Research.

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