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Global Production Networks and Regional Integration

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  • Sven W. Arndt

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    (Lowe Institute of Political Economy, Claremont McKenna College)

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    Abstract

    This 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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    File URL: http://lowe.claremontmckenna.edu/pdf/WP03-01.pdf
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    Bibliographic Info

    Paper provided by Lowe Institute of Political Economy in its series Working Papers with number 0301.

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    Length: 25 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:loi:wpaper:0301

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    Related research

    Keywords: fragmentation; exchange-rate elasticities;

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