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The internationalisation of production: moving plants, products, and people

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Author Info

  • Riess, Armin

    ()
    (European Investment Bank, Economic and Financial Studies)

  • Uppenberg, Kristian

    ()
    (European Investment Bank, Economic and Financial Studies)

Abstract

Introducing this volume of the EIB Papers and linking the various contributions, this paper emphasises that the internationalisation of production in Europe, which creates cross-border production networks, is an increasingly important element of globalisation, has been spreading to new EU members, and brings benefits very similar to those of globalisation in general. Popular fears that the geographical reorganisation of production comes at the expense of countries that see some of their activities moving to other countries are largely unfounded. In particular, "races to the bottom" in wages, tax revenues, and environmental standards do not seem to take place. On the contrary, the move appears to be up rather than down. That said, like any structural change, the internationalisation of production brings distributional challenges that need to be dealt with.

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Bibliographic Info

Paper provided by European Investment Bank, Economics Department in its series EIB Papers with number 1/2004.

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Length: 16 pages
Date of creation: 18 Jun 2004
Date of revision:
Handle: RePEc:ris:eibpap:2004_001

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Related research

Keywords: foreign direct investment; economic growth; EU integration; globalisation;

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References

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  1. Nash, Chris & Sansom, Tom & Still, Ben, 2001. "Modifying transport prices to internalise externalities: evidence from European case studies," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 31(4), pages 413-431, July.
  2. Baldwin, Richard & Krugman, Paul, 2000. "Agglomeration, Integration and Tax Harmonization," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2630, C.E.P.R. Discussion Papers.
  3. Magnus Blomstrom & Ari Kokko, 2003. "The Economics of Foreign Direct Investment Incentives," NBER Working Papers 9489, National Bureau of Economic Research, Inc.
  4. Fritz Breuss & Peter Egger & Michael Pfaffermayr, . "The Impact of Agenda 2000's Structural Policy Reform on FDI in the EU," WIFO Working Papers, WIFO 150, WIFO.
  5. Devereux, Michael P & Lockwood, Ben & Redoano, Michela, 2002. "Do Countries Compete Over Corporate Tax Rates?," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 642, University of Warwick, Department of Economics.
  6. Roberto Basile & Davide Castellani & Antonello Zanfei, 2003. "Location choices of multinational firms in Europe: the role of national boundaries and EU policy," International Trade, EconWPA 0310001, EconWPA.
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Cited by:
  1. Chang, Chia-Ying, 2012. "Can a home country benefit from FDI? A theoretical analysis," Working Paper Series, Victoria University of Wellington, School of Economics and Finance 2067, Victoria University of Wellington, School of Economics and Finance.

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