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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.tandfonline.com/doi/abs/10.1080/17487870701272827
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    Bibliographic Info

    Article provided by Taylor & 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:jpolrf: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. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    2. Debaere, Peter & Görg, Holger & Raff, Horst, 2010. "Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing," IZA Discussion Papers 4729, Institute for the Study of Labor (IZA).
    3. 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.

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