Global Production Networks and Regional Integration
AbstractThis paper examines the implications of cross-border production fragmentation in the context of regional integration, using both general- and partial-equilibrium approaches. It shows the conditions under which fragmentation converts a trade-diverting FTA into a trade creating one. It assesses the effect of fragmentation on the balance of payments and the sensitivity of trade flows to exchange-rate changes.
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Bibliographic InfoPaper provided by Lowe Institute of Political Economy in its series Working Papers with number 0301.
Length: 25 pages
Date of creation: 2003
Date of revision:
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fragmentation; exchange-rate elasticities;
Find related papers by JEL classification:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F31 - International Economics - - International Finance - - - Foreign Exchange
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